Starting your own business might be one of your greatest achievements in life as an entrepreneur. But keeping that business afloat is a harder (and larger) challenge. As there are so many challenges facing startups nowadays, we’ll focus on the 5 most common ones and provide solutions (and advice) for them as well.
The biggest mistake that most entrepreneurs make is that they start a business expecting instant profit. In today’s saturated market, chances of that happening are very slim. Why take the risk if you could easily play it safe? It is best that you start your business assuming that you won’t get instant profit. Experts advise not to expect much profit for at least two years. Now you must be thinking, “gee, two years is a very long time.” Having this mentality ensures that you’re not risking everything at once and have time on your hands to actually guide your business into growing and gaining that popularity in your target market.
Lack of patience
Here’s the truth: oftentimes, startup businesses fail because the people that start them think they know everything already. Many young entrepreneurs are so excited about setting up their very own business that they fail to prepare a proper business plan. It helps in focusing on the goal and mission of the business. The solution is simply, time. It is essential for new businesses to manage their time wisely. Not rushing crucial decisions might be the best decisions entrepreneurs make. Taking time to review the target market and how you go about starting your business are some of the key things to note here.
Finding the right people
A lot of small business owners claim that their business has a niche market. While that’s all fine and good, most of their staff members don’t even have the right background to be efficient in said business. With that being said, finding the right team who can share the same passion as the founders is the most challenging part. Taking the time to carefully select the right person for the right position goes a long way in ensuring that the business can cater precisely to their target market without having people say that they’re “not qualified” or they “don’t know enough” to actually be in that market. What’s hard about this is when the entrepreneur doesn’t find the right people, he/she tries to…
Doing everything alone might be one of the worst decisions young entrepreneurs make. Knowing that you know everything and don’t need any advice or help from anyone is not just risky, but it also leads to a business failing faster than being built up. Following the birth of their business, the owners might think that they’re being successful as the costs are low (since they handle everything). However, as the work starts growing gradually, the workload takes a toll on the new entrepreneur. This is often followed by mistakes leading to the quality of work deteriorating, which then leads to losing customers and eventually, a failed business. Hence, this strategy is not successful in the long run and as a solution, hiring two or three employees is more beneficial than one person handling everything from day one. The exchange of information and ideas from one person to another also helps in the stability of the business.
The customers keep the business alive. Without them, a business will die. And that’s where marketing comes in. Some businesses might need it more than others but at the end of the day, they all thrive from good marketing and advertising. Once you have a clear idea about your target market and your competition, you can allocate a budget for advertising and promoting your business and decide which medium to advertise through. The good news about advertising nowadays is that many use social media platforms to help get their product out there. Free social media sites such as facebook, twitter and instagram are excellent mediums for many startup business by letting the owners post pictures about their products. Customers can post reviews about their experience dealing with these businesses as well.