In today’s fast-paced and competitive world, being an entrepreneur can be challenging but rewarding. Here are five challenges you will have to overcome
Starting a business is not as glamorous as they make believe. You need to be disciplined and find creative ways of solving the needs of your customers. Not one business is without challenges, especially small ventures started by young people. How you deal with them will determine the future of your venture. Here are five common challenges you will sure stumble upon, and here’s how to overcome it:
Lack of capital: You might have the best and innovative idea that will change the world, but with little or no capital it might be hard to get your business off the ground. The challenge with most entrepreneurs is that they stretch their dreams too far and want immediate results. Break down your business goals to short term and long term. Start small with what you have to raise capital for your business idea. Target your core customers, such as family, friends and your community and give them the best service. Word of mouth goes a long way for any business. Shop around for business incubation programmes and funding organisations such as the NYDA. Brush up on your business plan and when you apply for funding, show a bit of initiative on how you raised your own capital and kickstarted your business.
Cash flow management: Money is the heartbeat of any business. Ask any small business what their biggest hiccup is and it’s late payment from suppliers, which then affects the health of the organisation. It’s important to have an emergency fund saved up for rainy seasons and late payment. A down payment is another option to consider, which can help keep things afloat. Also, invest in online bookkeeping softwares that help track your finances.
Finding the right team: Employing talented employees is a challenge for any business, big and small. Finding the right people to help grow your business can be a bit pricey and time-consuming, especially when you are growing your business. But it’s a necessary investment to make when your business can afford to. In the meantime, there are freelancers you can work with for the services you are offering in your business.
Not getting enough support: It’s an unfortunate reality that young, black entrepreneurs face. From our families expecting us to get a job, which offers financial security to others who discourage us along the way. This journey is not for the faint-hearted and it can be a lonely one too. Turn to those who believe in you, from your mentors (if you have one) and friends to networking and incubation programmes who have people that have similar experiences.
Self-esteem issues: Failing at anything can bruise your ego, especially when it comes to your business. Not finding clients or income streams can make you doubt yourself and your capabilities. It’s important, though to remember why you started your venture and what you are doing each day to reach your goals. Celebrate each milestone, especially small ones as they build up to your ultimate prize. The important thing is to not give up and find ways to motivate yourself when you feel discouraged. The internet is your best friend, look for motivational sites, such as www.goalcast.com to keep you motivated every day.
What other challenges have you, as an entrepreneur faced?