Tuesday, November 1, 2016

7 Biggest Challenges Entrepreneurs are Bound to Face

Entrepreneurship is a wonderful option for those who are driven and dedicated, and that is why there are about 50 million new startups every year. However, it is not always a smooth ride once the business has started. Here are common challenges faced by startup entrepreneurs.

  1. Fierce competition
    There are very few startups that are joining an industry without competition. Competition is getting tougher each day with companies trying to outdo each other for a bigger chunk of the market. The business owners should be aggressive and innovative in marketing their products.

  2. Cash flow problems
    Every business requires a stable cash flow for survival. Unfortunately, many startup owners struggle to pay their bills and those of the business when clients delay their payments. Business should ask for a down payment and put in place a budget to help maintain a cash flow.

  3. Inability to manage time
    Entrepreneurs have to wear many hats at the workplace. This takes all the time for critical tasks. This often leads to delay in service delivery and not meeting set deadlines. To eliminate the problem, entrepreneurs should set goals and follow them to the T, delegate tasks when possible, and assure every single deadline is met.

  4. Choice of products to sell
    Most startups end up lost in the huge variety of the products for sale in different niches. This often leads poor sales and lack of proper goals. It is important that startup owners do a market research on possible gaps they can fill in line with their strengths and capabilities.

  5. Lack of capital
    Many entrepreneurs have great ideas for the business but have little capital to start the ventures. They end up not starting at all. Entrepreneurs should seek various methods of funding in the business field and go for the less risky options wherever possible.

  6. Management of the business
    Most entrepreneurs are managing an entity for the first time. Thus, they face many challenges when making decisions on various issues concerning the business. Sometimes they make grave mistakes that bring the business down. Consultancies can help in coming up with proper decisions especially in the critical areas of the business.

  7. Hiring the right employees
    The employees are a business’s most important asset. They produce the goods and services and are a market touch point. Thus, having employees with the right qualities is a plus. Unfortunately, most startups do not know what skills and personal attributes are needed at the workplace when hiring. Entrepreneurs could remedy this by seeking the assistance of human resource consultancies in coming up with job descriptions and the hiring process.

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