Becoming an entrepreneur can be a rewarding experience. You get to do what you love and the freedom to structure your own company. Not to mention the opportunity to reap all the profits and make much more than a minimum wage job!
Nevertheless, the road to success is no easy feat and you’ll be faced with a ton of challenges. From creating a client base to dealing with employees, these challenges will be testimonial to your attributes as an entrepreneur.
Here are some of the most common challenges you’ll face as an entrepreneur and how you can overcome them. Before that, check out our blog on entrepreneurial skills and why you need them to succeed.
Time Management
Time is an important asset for anyone, especially entrepreneurs. You’ll have many different tasks to focus on and losing a sense of time is normal amidst the chaos. This can take a toll on your health however as you may work longer hours and have less time for yourself.
Multitasking and shortcuts are viable solutions to getting things done but they might affect your work quality. At the end of the day, it boils down to how properly you manage your time.
- Solution: Come up with a schedule and list down everything. Prioritize important tasks and delegate other responsibilities to your employees. Understand which tasks should come first and how much time should be allocated to each task. You should also make use of time management tools as they can help you streamline your work better. Lastly, try to complete your tasks well ahead of their due dates so you can start on newer ones.
Financial Planning
Starting a business requires a significant amount of capital. With a lack of funds, you may struggle to get your business going. Having a good amount of capital will allow you to invest in new products, improve services and grow your workforce.
Money is also essential to keep your business afloat and you need constant cash flow in order to do so.
- Solution: Obtain a loan from the bank or find an investor. On a side note, make sure you have all the right documents before making a loan appeal. You should also have a proper pitch in place before approaching investors. When all else fails, use your personal savings to get your business off the ground so start saving! To ensure good cash flow, create a forecast and make regular reviews to make sure you’re on track. You should also consider corporate investing as a way to increase your revenue streams.
Managing Employees
Working for a company and running one are two very different things. As the owner of your company, you have the responsibility of managing employees. This includes finding the right talents, assigning tasks to them and ensuring they are satisfied with work.
Managing a workforce can be a herculean task and to make matters worse, you’ll likely come across defiant employees too!
- Solution: Start by hiring competent employees. If you hire qualified employees, you’ll minimize the risk of non-complying team members. You should also communicate effectively with your employees and give them some encouragement now and then. Another thing to consider is having a reward system. This can enforce positive behavior among your workforce, encouraging them to work harder and achieve their goals. All in all, employees are the backbone of a company and good management has the potential to create a functional workforce.
Dealing With Competitors
The business landscape is constantly growing and changing. In other words, competition is everywhere and starting your own business will directly put you in the trenches. As the owner, you have the task of leading your troops into battle and that is no easy task.
Competition can be fierce and regardless of your niche, having the wrong strategy can damage your business. So how do you stay competitive in a contentious market?
- Solution: Firstly, make sure your service or products are adequate. Next, conduct a SWOT analysis to see what your company does best and how you can come up with a successful strategy. You should also put together an in house marketing team or hire one externally. Keep in mind that marketing works best when it’s backed up by a good product. Lastly, conduct regular market research to stay in the loop and be ready to adapt to any changes in the market.
Creating a Client Base
Revenue is generated from sales and sales comes from your clients. A weak client base can greatly affect your business outcome, leaving you with losses instead of profits. No business wants to be at a loss by the end of the month and this can be avoided with a solid client base.
- Solution: Networking is key in finding clients. You need to meet new people, join meetings and get active in social media in order to find new clients. Once you’ve found your clients, work hard to retain them by understanding their wants and needs. If you do a good job, your clients will refer you to other potential clients and you’ll organically receive more prospects.
Conclusion
Becoming an entrepreneur is not for the faint of heart. You’ll be faced with many challenges along the way and it comes down to hard work and determination. By considering these challenges and solutions, you’ll be better prepared for your role as an entrepreneur.
Last but not least, approach every obstacle with an open mindset. This will help you learn from your challenges and inevitably become a better entrepreneur.
