When starting a new business, entrepreneurs usually start out small. One of the many reasons for this small startup is their apprehension regarding the challenges they might have to face in the initial stages.
Most entrepreneurs leave their secure jobs to dive into the chaotic world of business. When entrepreneurs leave their jobs to become a business owner, most experience a culture shock. Moreover, contrary to a salaried employee, business owners are in charge of the entire day-to-day functions.
Challenges in Starting a Small Business
Starting a small business can be extremely exciting and challenging. When starting a business, many entrepreneurs find it hard to delegate work as they run into the roadblock of “I can do it better myself.” However, this seldom works, as it can lead to a quick burnout.
Apart from this challenge, there are several others that can cause hurdles for entrepreneurs:
o Lack of funds: Most small startup businesses are extensively dependent on personal savings as they do not generally get funds from external sources. Since most young entrepreneurs do not have substantial savings to invest, their business kick starts slowly. The lack of funds also limits business plans. Those who love to be their own boss, despite having low capital, focus on businesses that do not require substantial startup capital, such as Internet marketing and home-based businesses.
o Lack of experience: Most entrepreneurs lack the experience of handling a business independently. Moreover, most people are not well equipped with the skills necessary to run a business. Starting a new business requires much more than finding a cool product or service to sell. It also requires you to be adept at sales,read the full info here accounting and planning to make the company profitable.
o Small network: The best way to start a new business is to do so with a group of competent people who may have different skill sets but share the same vision. Most entrepreneurs lack that network of highly-skilled professionals as they had only a few years to expand their network of contacts. It may take you a long time to build such strong and meaningful relationships with likeminded people in the business world. While making your core team, gauge your strengths. You will most likely need partners who compliment your strengths.
o Time management: With everything and everyone vying for your attention, it is hard for entrepreneurs to gauge high-priority tasks. You must become an expert at prioritizing and pacing in order to capitalize on business opportunities.
Overcoming Challenges in Starting a Small Business
To overcome these challenges, you must:
o Have enough funds in your account. A conservative estimate could be six months of living expenses, apart from the start-up capital. You must also ensure an excellent personal credit record.
o Research your product or service and its addressable market properly.
o Do not start without a plan.
o Try your idea while working in a regular job. This ensures you still have an income, as businesses do not generate earnings immediately.
o Obtain all the personal and professional support you would need before you completely transition from a job to business.
Carrie Langstroth has a background in finance. She was the Chief Financial Officer for one of the fasted growing property management and development companies in the country. She retired from this career and has started pursuing other business interests.
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