Businesses come with challenges, whether big or small. But for a new entrepreneur, it is slightly tougher and a bit stressful. Some of these challenges are quite common, like making decisions about choosing the right business, then arranging the funds for it by attracting investors, and then maintaining the cash flow from there.
All these steps bring you closer to running a small business of your own success. But then come the bigger challenges like marketing, managing financial situations, and competing in the market. Here are a few common small business challenges for new entrepreneurs to be prepared for.
Finding business partners
It is not easy to find a trustworthy, honest, and reliable business partner. The most critical challenge for a new entrepreneur is to find a partner with the same level of passion as them. A wrong business partner can have a negative impact on your business and have everything go wrong.
Maintaining cash flow
One of the hardest challenges a new entrepreneur must face is maintaining a stable cash flow. If you are getting paid 10 or 20 days (about 3 weeks) after your services, then what will you pay your employees, infrastructural expenditure, gasoline prices, or your own personal expenses. To maintain this, keep track of your cashflow by knowing exactly where, how, and when your cash is going and coming from to adjust accordingly.
Finding costumers/ competing with competitors
No company or business waits for its customers idly. Every business or service provider has its own version of a marketing strategy that attracts customers or clients. As a new entrepreneur, it is hard to compete in a sea of businesses where there are bigger fishes swimming with you and faster than you. e key to facing this challenge is to look out for a small number of customers who need exactly what you are offering. This is how more customers will know about you and your brand. Always listen to feedback and respond to it accordingly. Know your customers and they will stick with you to take care of their needs.
When to quit your job
Know when it is time to quit your job and put all your focus on your entrepreneurship. Many new entrepreneurs make the mistake of quitting their jobs too early. Although there is no such thing as perfect timing, as a new and inexperienced entrepreneur it is important to not let go of your job at the initial stages of your business. Being self-dependent is heavenly but having a cushion when falling through financial crises saves you a lot. Have a cushion until you know you do not need one.
Feeling clueless at times
Feeling clueless? Don’t worry, a lot of entrepreneurs hit a point in the learning curve – creating an effective marketing strategy or developing a new product. You might also lack experience with hiring talent, making a budget, negotiating, or balancing the books. If you are feeling lost, you can hire an accounting firm in London like Finchley Business Services for services like accounting, tax advisory, payroll, bookkeeping and bank account set up, company registration, and VAT (Value Added Tax).
Take time to learn because there are a lot of things you haven’t done before but will only learn with experience.
