9 Biggest Challenges Entrepreneurs Face When Starting a Business10:31 AM
When starting a business , most of the entrepreneurs have to face plenty of challenges . What are m...
When starting a business, most of the entrepreneurs have to face plenty of challenges. What are most biggest challenges for small business owners? Most of the young entrepreneurs are not prepared to resolve those problems and they fall down that we call "failed startup". Sometime you can't avoid those problems and challenges to become a successful small business owner. If you are intend to start your business or running a business, you should understand those challenges and find solutions to face the problem.
Instead of facing problems with doubt or uncertainty, understand that these challenges are to be expected and that nearly every successful business owner faces some combination of these.
"Your major problems are essentially the same as what the competition is facing."There are plenty of recent solutions designed to achieve success in business. The key is finding one that fits your business.
Here are some common faced problems in new businesses and their solutions:
1. Managing Cash Flow
One of the leading causes of stress and failure for a business is money management. Money is known to be one of the major causes of problems that can lead business to failure. For a new business, the biggest mistake is expecting instant profit. "Money problems in their various forms are top of most lists of company woes," says entrepreneur Tom Ewer, "and for small businesses the major worries are clients stalling payments, unexpected outgoings, and outstanding bills that won't wait to be paid."
Always prepare for the worst case scenario. Before starting a business, ensure that you have enough money to sustain you at least up to two years. Start slowly and patiently.
2. Managing TimeThe phrase ‘time is money’ holds true, especially when it comes to a business. The time you invest in your entrepreneurship or small business is directly correlated to how well your business performs and the profit it achieves. It is essential for new businesses to manage their time wisely. To become a successful small business owner, young entrepreneurs must have to create a budget map of their time. It's recommended to have a written time management plan to increase your company productivity. Many startup failed just because of having lack in time management planning. If you use your time effectively, this will help you to increase your revenue and this must reduce your costing in maintenance.
Related: 5 Steps to successful time management
A few pro tips to managing your time:
- Don’t overestimate your available time and don’t promise things you can’t deliver.
- Planning everything in advance and ensuring everything is done on time is very important for the prosperity of any business.
- Use online calendar tools and technologies to track your time and schedule. There are many free online resource and tools for time management which you can use fully free, as like Google.
- Utilize calendars and planners to make sure you don’t miss an appointment or a deadline.
- Remark every important notes and dates.
- Set goal to finish a project in a certain time.
3. Lack of Knowledge/SkillsJumping into a new business with little to no industry knowledge, experience, or skill is a common mistake in startups. This is one of the top most mistakes made by entrepreneurs. You need to be educated with the knowledge and skill whatever you are going to start or managing. This is one of the key to become a successful entrepreneur. You should know your market and advertising metrics. You should learn about your competitors. If you think you don't have enough knowledge or good skill to done some task, then trust the professionals to handle the parts of your business. You can hire freelancer professional to complete your task perfectly with the cheapest cost. Consult with professional advisor if you needs or you think you have to. Starting a business without having proper skill is not a good idea. But still you can start your small business and manage it with the help of professional employee in various department.
- Use LinkedIn, Freelancer, Fiverr to find qualified professional easily and quickly. I recommend LinkedIn to hire your employee.
4. Hiring New EmployeesDespite record unemployment figures, it has become increasingly difficult for businesses to recruit and maintain quality employees. Hiring new employees is a challenge many small businesses are having to deal with. Part of the difficulty relates to employee healthcare -- which we'll discuss in greater detail in a moment -- but it also has to do with the substantial costs of bringing new employees on board. According to one estimate, the total cost of on-boarding -- taxes, benefits, equipment, training, bonuses, etc. -- can range from 1.5 times to 3 times the salary of the position. That's a significant investment for companies that are typically strapped for cash. You may feel that because of a limited cashflow meaning you’re unable to offer high wages, you’re unable to attract the right kind of candidate suitable for your business.
Related: 10 things you should never do with your employees
- Rewarding staff, offering flexible working hours and holidays is more likely to get applicants than high wages and a regimented working environment.
5. Lack of Direction and Planning
Most entrepreneurs think of all the possibilities owning a business will open up, without always thinking about a detailed and strategic plan to get there. Many young entrepreneurs are so excited about setting up their very own business that they fail to prepare a proper business plan. A business plan is basically an investment to your business. Creating a strict business plan, goal, mindset, and course of action is the key to being successful. Your business plan will determine your financial success, growth in the market, and the ability to beat out the competition. It helps in focusing on the goal and mission of the business.
6. Balancing quality with growth
Business growth is part of every business plan, but it’s also important to remember that success is too – so it is important that the growth is managed well enough to ensure that success prevails. Ensure your business plan is up to scratch with realistic predictions about how your business will grow to enable you to support it on its journey. Options for unexpected growth should also be considered to ensure that you’re prepared, just in case.
If your business does begin to grow quicker than expected or beyond expectations, it is important that you keep on top of it. Unmanaged growth could lead to detrimental effects on the business, so realistic goals with consideration as to how to deal with all other possibilities are vital.
Related: 10 Expert tips to successful digital marketing
7. Working ON Your Business and Not Just FOR Your Business
Instead of spending all your time working FOR your business, working ON your business is another key to being successful. Usually entrepreneurs get so worked up with the paperwork, satisfying customers and doing all the necessary things in keeping the business running. They fail to fulfill some other equally crucial tasks. It is important that you take a day or even a few hours to analyze your business. Analyzing how your business works or what future plans you have is one of the most important things new entrepreneurs can do. Hold meetings with your managers and other employees to connect with them. This way you can grow your business 10x faster than who really don't do this.
Related: 7 things you should never do to starting a business
8. Getting Clients
Finding clients and customers can be difficult during the early stages of your business. For a new business, it is difficult to attract prospects and retain customers. With a small marketing and advertising budget, new entrepreneurs are unable to reach out to a wider audience. Potential customers are usually hesitant to going for a new business. They prefer going for companies that have experience and a large customer following. Your competition may have years of experience in successfully attracting customers and building trust.
However, the good news is big companies charge more. Ensure that you always meet the needs of your clients, find ways to differentiate your business in terms of its service or product quality, and focus on building relationships that will make customers more likely to do business with you in the future. And make sure to ask your customers for referrals to leverage their satisfaction for networking and new opportunities with new customers.
9. Fear Factor
Fear is something that stops small business owners from finishing what you started. To be successful you must deal with overcoming of fear. People tend to make excuses for not sticking to the business plan. Fear of writing, Fear of lack of money, Fear of not getting leads, Fear of marketing, Fear of not being taking seriously, Fear of not making money, Fear of not getting clients, Fear of not taking risk etc. Visualize your success, by writing down your goals, how much money would you like to start earning on monthly basic. Don’t be afraid to try new methods for your business. Don’t be afraid to challenge yourself, Fear has no part of the goals you have set in place. Just kick out your fear and stick on your business and marketing plan. Achieve your goals.
Some key-points to face the biggest challenges of your entrepreneurial life:
- Be creative and find your innovative idea
- When you are clear about your idea, or when you are sure to start anything, start your research from scratch.
- Learn from successful businessmen by asking about their experiences.
- Find effective solutions, always find a second right option (plan B)
- Ensure that all your employees are prepared to face your business challenges and they would be able to manage it well.
- Set price by analyze your competitor companies
- Set medium budget for advertising, use online marketing, TV media marketing, and Radio media marketing (Where applicable)
- Make sure you target the right market and right audience.
- Use technology. It makes your business more flexible.
- Use social media for marketing and branding. Consider facebook, twitter, Instagram, pinterest to start building your brand.
What are the biggest challenges entrepreneurs face when starting their own business? If you know any story or challenges that anyone including you have faced, please write in comment box. i would like to get feedback and learn from you.