In this highly-competitive digital era, entrepreneurship proves to be pretty challenging. Fortunately, the current generation entrepreneurs have access to a plethora of resources with the help of which they could successfully face those challenges.
As per https://yfsmagazine.com, coming up with small businesses and startups would entail facing a host of challenges. As an organization starts growing, persistent issues would be demanding agile solutions. Fortunately, most challenges faced by small businesses could be overcome.
All new entrepreneurs encounter several challenges such as establishing a robust brand, adjusting to beat the competition or win a competitive edge, and making sure that their business is profitable. If you have just joined the ever-challenging entrepreneurship game, you must become mentally prepared to encounter the following few significant obstacles on the road to success.
Giving Up another Career
If you are starting a new business, you need to dedicate your time and effort to nurture a business so that you could achieve success. Hence, it would be practically impossible for you to manage your earlier career simultaneously. If you wish to take your new business to the next level, you would need to focus your attention on its growth challenges, and success. You need to devote full time to this new business so that it could thrive and succeed despite stiff competition.
It is understandable that it could prove to be quite a scary proposition to walk away from a steady profession or a long-term job for something so dicey or unpredictable like starting a new business of your own particularly if you have no past experience in running a business. You need to address this concern logically. Take decisions judiciously and follow your instincts.
EJ Dalius Feels Cash Flow Management Is a Major Challenge
Cash flow is integral to the smooth running and survival of a new business. However, several entrepreneurs often seem to be struggling to pay off their bills when checks are yet to arrive. The issue arises partly because of delayed invoicing that is pretty common in the business world. You are expected to complete an assignment or project, send an invoice, and then you are paid a month later. Meanwhile, you need to keep up constantly with all the payments to your contractors or employees, and even pay for your grocery or mortgage bills.
Eric J Dalius says that the best solution is to chalk out a perfect budget and an effective strategy to maintain cash flow; however, often you would need to do more to stay away from the burden of bills. A great way of boosting cash flow is to ask for a down payment for services and products provided by you. Your down payment should be covering all costs relating to a given sale or project and some amount of profit for you. When you ask for a down payment, you could at least, be sure that you would not any longer be left just to pay others’ bills, by including some profit in the down payment, you could pay your own bills as well.
Another super-effective stratagem for boosting cash flow is to insist on speeding up invoice payments. Start invoicing clients within just 15 days that is precisely half the usual invoice period. This implies that if a client delaying his payment, you would be having a couple of weeks for addressing the issue. You could get the payment before the bills are due for the next month. Moreover, more and more organizations are insisting on immediate payment once the project is completed. In this digital era, clients could make immediate payment by just a tap on their cell phones.
This could prove to be quite challenging if you have never ever managed a team. However, even if you are having a reasonable experience in management, choosing the perfect team for your business could be a difficult and stressful exercise. It is simply not enough to identify the right candidates to fill specific roles, you must keep in mind factors such as cost to the business, their efficacy as a part of a team, and their culture fit. We know that such considerations could prove to be really challenging especially when you are hard-pressed for time and wish to hire people to fill up the necessary positions at the earliest possible.
We have discussed the top few entrepreneurial challenges. Once you learn to cope up with them, you could solve the varied and new challenges that are sure to come on your way.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com