Startup entrepreneurs face business issues when trying to set up their companies, the key challenge is procuring funds and hardships of raising the same. There are other issues like the lack of appropriate accounting, as in a business, which is just off the ground, maintaining cash reserves and cash inflow matter the most. Most startup businesses fail to survive due to the dearth of capital, especially at crucial times. What is essential is predicting the result and doing number crunching like a pro.
According to an article published, entrepreneurs should focus on a business plan that is simple and practical to implement. You may find many opportunities to tempt you but many of these are too good to be true if you mull over seriously.
When you have a limited budget, try to make the most out of Google My Business. You can read about it more here https://www.askpreeto.com/tips-by-eric-j-dalius-on-small-business-marketing-with-minimum-budget/, to learn to manage your business on the digital platforms.
Building your startup has its share of benefits and pitfalls. Here are some of the challenges faced by startup owners and ways to deal with the problems:
Eric J Dalius suggests focusing on cash flows
Just going through your company’s profit and loss report will not do you much good. Though it may seem that you have succeeded in breaking even on black and white, it does not assure that your business will sail smoothly in the subsequent months. The solution lies in figuring out your payables, receivables, and net profit most of the time so that you can plan and operate a flourishing business.
The balance sheet, profit and loss declaration, and cash flow report are basics of keeping track of your business revenue, and accordingly takethe right, strategic decisions for enhanced growth, expansion, and profits.
Finding the right team members
As an entrepreneur, when you have a startup to manage, you will need employees for the execution of different business activities and tasks. Then, hiring experienced people could prove challenging because you need to pay them well. Therefore, you will need a talent pool of employees who can multitask and work independently without much training and supervision. However, trained staff will not agree to work at reduced pay and jeopardize their career.
The solution is looking for your close friends and family members to look for talent, who are okay with change and a challenging business environment. If you give your employees some ownership and incentives like the performer of the month with some cash benefits or gift vouchers, it will help in attracting the right people to work for you.
Coping with your closest competitors
When you have just started your venture, understanding your competitors in the same business niche is like climbing up a lofty mountain. Things are quite tough when you have competitors selling the same stuff and when you have just kick-started your business. Then, you need to overcome the business challenges to survive because that is your bread and butter.
Companies that have been in the industry for decades may overwhelm you. EJ Dalius says that the smartest thing to do is competing with smaller brands and not the big shots when you have just set up your enterprise. If necessary, seek help from experts in the industry, connect with them, and learn the tricks of the trade.
However, stop worrying too much about your competition and pay heed to what products or services you have on offer. Let your existing and potential buyers decide whether they like your merchandise or not. So build your rapport with customers, clients, and followers.
When it comes to regulatory and compliance needs, it is a tiring process and could make or damage your startup in case, you do not conform or show complacence. Understand which laws apply to your organization and make an effort to comply.
Managing business risks
In business, you cannot survive if you do not take risks. No risk; no gain, it’s simple. Being in your comfort zone and playing safe most of the time will make you barely survive and not take you to a level, where it would not prove whether your products or business ideas are successful or not.
When it comes to any business, there is downtime, people leave the company, or financial emergencies arise. Therefore, you need to accept the business risks and mitigate them with a solid plan. Fortunately, you have insurance to protect your venture from building damage, theft, fire, medical contingency, as well as redundancies.
You need to have a risk management plan to swim through rough weather. Even if you have an online business, sales from websites and social media sites are unpredictable and so not risk-free. There are instances when companies had their social media pages hacked and lost thousands of followers they gained over decades.
In such a case, you need to develop your Facebook or Instagram page from scratch. The best way is to collect your consumer database from the very first day and sending email newsletters to intimate your customers about your new page after the hacking incident.
When your business grows, you will need more staff, and hiring is always expensive for startups. That is the reason why you need to be transparent with your employees so that you can earn their trust and look for solutions to problems. There would be initial disagreements. Then, when you are honest with your staff, the team management cycle will work and you can manage your staff efficiently. It is popularly called forming, storming, then norming, and finally performing.
To manage teams and people, your business will need a strict manager and a good one to balance all aspects of your startup. Implement a reward and penalty process and focus on optimism and rest rained strengthening in place of punishment. These things will help in keeping things in control.
There will be challenges when you are just starting a business. You need to identify the problem areas, as a visionary entrepreneur and look for possible solutions to sail smoothly despite hurdles and competition.