No start-up business is the same. Every entrepreneur will face a unique set of unpredictable challenges. However, there are some problems that pounce on every business. Here are 5 challenges that every successful entrepreneur conquers:
1. Cash Flow Issues
Money makes the world go round and a lack of it will grind a business to a halt. Overconfidence is the most common mistakes that slays start-ups. Every entrepreneur should anticipate feeling the financial squeeze at some point. You might have difficulties securing the initial funding to begin your business. Or perhaps, after you’ve attracted the first wave of enthusiastic customers, the influx flat lines and sales taper off. Be ready for it. It’s a common challenge.
As far as cash flow goes: do everything in your power to be the best, but prepare for the worst.
2. Who to Work With
You might be able to start your business alone, but at some point you will need to team up with partners, outsource and/or hire employees. Choosing who to work with will determine whether the future is smooth sailing or rough waters.
Choose people you can trust and who are dependable hire more towards passion towards your company and the value of what they can bring to your company then experience. Social Capital is another thing that ranks high on my list when considering bringing someone on board, who else do they bring with them, from a relationship stand point but also a social media standpoint. If we need to run a crowd funding campaign can they get people on board? Partners and employees who don’t deliver what they promise impede businesses, even ones with good products. The outside world might be drooling for your goods, but that won’t help if the inside or your business is a mess.
3. A Product that Fills a Void
It’s common sense: If you want to sell, you need someone to buy. Victor Pride explains that most start-ups fail because they do not provide products that are innovative, fresh, or needed. Many entrepreneurs forget the core of their trade, to supply a service or product that people want.
Ask yourself if your business is unique and whether it caters to a market need. Be honest. Do customers need your product/service? Are you filling a void? A smart exercise would be to play the contrarian. Write out a list of reasons why people don’t need your business. Are there viable alternatives to what you sell? Keep revising your business model until it is useful to customers and unique in the market.
4. Attracting Customers
Customers are the most essential part of entrepreneurship and also the most difficult part to achieve. Don’t be fooled into thinking customers will be fighting for your product as soon as it hit the shelves. Entrepreneurs believe their ideas are great. However, customers will be cautious with their money. The challenge for the entrepreneur is to convince others of the greatness of their service/product. To do this, the product/service actually needs to be great. But sometimes that won’t be enough. Online promotion is a great tool to push your business. And don’t forget about those around you. Local communities are a mine for any start-up. Meet potential customers in person. It’s more difficult to say ‘no’ to someone’s face.
There aren’t many guarantees in entrepreneurship, but here’s one: a good idea will be copied. A successful trail blazer will be followed by crowds. If you manage to overcome every other challenge and create a successful business, then others will imitate your business. The solution is evolution. Continue to innovate. Ensure that your business always provides something others do not.