4 Most Prominent Challenges Budding Entrepreneurs Face
It is quite obvious that entrepreneurs tend to face challenges in the initial stage of their career. But, as popularly quoted 'every failure is a stepping stone of success,' it is by overcoming these challenges that entrepreneurs get to grow stronger to face and tackle any obstacle coming their way. In spite of various measures taken to improve startups, reports highlight that close to 90 percent of startups fail. The government's numerous initiatives, that include tax rate cut for startups would help them to grow and flourish. Let us check out four such challenges and its solutions that every entrepreneur encounter.
Finance is the most crucial part of launching a business. This could be easy for existing entrepreneurs, but, the newcomers with smaller or no network might find it difficult to gather the needed funding to set up the business. To overcome this problem the entrepreneurs should work hard on building a larger and most reliable network. Also, they should brush up their basic financial skills, and hunt for right investors who could invest with minimal interest rates. Furthermore, after launching the business, the entrepreneurs should focus on the company's cash flow to improve the overall financial status of the organization.
Lack of Right Hire and Team Building
In business, achieving success is certainly not a one-man show but, a team effort. Thus, every business needs a team that is compatible, smart and efficient. In the initial stage of hiring, the organization should focus on hiring the most suitable candidate who would be an able team player and is also interested in exploring and learning new things. By hiring such candidates, the organization would be able to manage all the operation at ease.
Improper Plan and Execution
Some companies fall short in planning the way the businesses are supposed to progress. In the worst-case scenario, even after proper planning, the businesses fail to execute it according to the plan. To counter this issue the entrepreneurs can seek expert's advice or guidelines from entrepreneur peers to perfectly plan and execute their ideas. Reports reveal that mentored entrepreneurs have had a higher success rate in terms of startup businesses.
Drawing Customers towards Business
Attracting customers is the final and most challenging problem of the business, especially the startups. The businesses should practice the right form of marketing to grab the targeted customer's attention. Marketing could be classified into two modes inbound and outbound. Inbound marketing would provide detailed information about the product to the customers through the company's blog or other content marketing. On the other hand, outbound marketing is a paid marketing which enables the company to reach the customers easily and analyze their requirements. Organizations can opt for either of the marketing strategies according to their business needs.
In every aspect of life, we come across several obstacles, but, the frequency of the challenge is a bit higher when it comes to business. Still, every problem has a solution when handled with patience. Taking one step at a time would ease the process of overcoming these challenges.