7 Common sales challenges for SMBs

Small and medium-sized businesses (SMBs) often face unique challenges in the sales process. Limited resources, fierce competition, and the need to scale quickly can create significant obstacles. However, understanding these challenges and addressing them with effective strategies can set your business on a path to growth and success.

In this article, we’ll explore seven common sales challenges that SMBs encounter, along with actionable tips on how to overcome them. Whether you’re struggling to generate leads, build a sales pipeline, or manage customer relationships, these insights will help you navigate the complexities of modern sales.

For more insights on SMB strategies, check out GoHire’s guide on hiring top talent for small businesses.

1. Limited sales resources

Many SMBs operate with smaller sales teams and limited budgets compared to larger corporations. This can make it difficult to maintain a consistent pipeline of leads and customers. With fewer people to manage sales outreach, follow-ups, and relationship-building, it’s easy for SMBs to fall behind in closing deals.

Solution:
To overcome resource limitations, consider investing in sales automation tools that streamline lead generation, follow-up sequences, and email campaigns. Hiring a sales representative or team on a part-time or freelance basis can also help ease the workload without the cost of full-time employees. Additionally, leveraging applicant tracking systems (ATS) like GoHire’s platform can optimise your recruitment process, making it easier to hire skilled salespeople on a budget.

2. Generating consistent leads

Lead generation is one of the biggest challenges for SMBs. Finding enough qualified leads to sustain your sales pipeline can be difficult, especially if your business is in its early stages or if you're in a niche market.

Solution:
Focus on building a multi-channel lead generation strategy. Use social media, email marketing, content marketing, and networking to attract potential customers. Offering valuable content, such as free resources or webinars, can help generate leads organically. If you’re struggling to find niche candidates or customers, check out GoHire’s guide on candidate sourcing strategies for insights into reaching untapped markets.

3. Managing long sales cycles

Many SMBs face long sales cycles, especially in B2B environments where multiple decision-makers are involved. A long sales cycle can tie up resources and slow down revenue growth.

Solution:
To reduce the length of your sales cycle, focus on improving your lead qualification process. Use tools like CRMs to track customer engagement and identify warm leads early in the process. Regularly communicate with prospects to keep them engaged, and make sure that your sales team is addressing objections as they arise. Offering incentives, such as discounts for early commitments, can also help shorten the sales cycle.

For more tips on improving your communication strategies, visit GoHire’s article on effective communication in business.

4. Building and maintaining a strong sales team

For SMBs, hiring and retaining talented salespeople can be a significant challenge. Without competitive salaries or extensive benefits packages, SMBs may struggle to attract top-tier talent in sales.

Solution:
Instead of focusing solely on financial incentives, SMBs can highlight other benefits such as flexibility, career growth opportunities, and a positive work culture. Offering mentorship and ongoing training can also attract sales talent looking for development opportunities. Using GoHire’s hiring platform can simplify the process of finding and hiring the right salespeople, ensuring that you build a high-performing team without straining your budget.

5. Adapting to changing buyer behaviour

Today's buyers are more informed than ever, often conducting extensive research before even engaging with a sales representative. This shift in buyer behaviour can make traditional sales techniques less effective and requires a more consultative approach.

Solution:
Train your sales team to take on a more consultative role, focusing on providing value rather than simply selling a product. Encourage your team to research potential clients thoroughly before outreach, personalising their approach based on the prospect's needs and pain points. Content marketing, including blogs, white papers, and webinars, can also help position your brand as a trusted authority in your field.

To learn more about personalising outreach, explore GoHire’s guide on LinkedIn networking strategies.

6. Competing with larger businesses

SMBs often face stiff competition from larger, more established companies with bigger budgets and more extensive sales teams. Competing against these giants can feel overwhelming, especially when they can outspend you in marketing, sales resources, and discounts.

Solution:
Rather than trying to compete directly on price or scale, focus on differentiating your business through exceptional customer service, personalised attention, and niche specialisation. SMBs are often more agile and can adapt quickly to meet customer needs, providing a more tailored experience than larger companies. Additionally, building a strong brand identity through employer branding strategies can help attract customers who value the personalised service that SMBs often provide. For more tips, check out GoHire’s employer branding checklist.

7. Closing deals

Closing a deal is often the most difficult part of the sales process, particularly for SMBs that may not have the experience or resources to address last-minute objections, negotiate terms, or build urgency.

Solution:
Focus on building trust and providing clear value throughout the sales process. Address objections early by thoroughly understanding the prospect's pain points and demonstrating how your solution directly solves their challenges. Offering testimonials, case studies, or product demos can also build credibility and help push leads over the line. Remember, following up is key—many deals are lost simply because salespeople fail to check in with prospects at the right time.

For additional tips on following up effectively, GoHire’s cold email templates for outreach offer some great ideas for re-engaging leads and closing deals.