Below is a list of some common challenges faced by new small business owners, and the solutions to these problems.
Capital
The challenge
You wish to start a new business but are having difficulty finding sources of funding.
The solution
There are several funding options, ranging from family and friends to conventional bank loans. However, the best way, also the less risky one, is self-financing. Target your primary customers and don’t focus on building a big business overnight. If you add value to your customers’ lives with your products or services, word-of-mouth publicity can propel your business to success. If you’re taking funds from outside, consult an attorney to avoid any issues in the future.
Too many competitors
The challenge
Having to compete with too many businesses in the same field.
The solution
Bring something new and unique to the table. Your business is likely to get more customers if you offer a wider range of products, along with extensive product knowledge.
Time management
The challenge
Having your own business means you have to take care of everything, unlike a regular job wherein you’re responsible only for specific tasks. This makes time management a major problem for new entrepreneurs.
The solution
Enhancing your time management skills is the only way around this challenge. To do so, create a list of lifetime goals (break the list down into annual, monthly, weekly, and daily goals), eliminate the redundant tasks, delegate those tasks which don’t require your personal involvement, and assess yourself regularly.
Strapped budget
The challenge
Despite having adequate cash flow, you may find your business cash-strapped and not able to market your products or services properly.
The solution
Accept that every entrepreneur goes through phases of being cash-strapped. Use the minimal resources possible to effectively market your products in a way that gives you the highest ROI. Save the rest of the funds for experimental and infrastructural expenses.
Self-doubt
The challenge
Initial failures and slow growth may lead to new entrepreneurs losing self-confidence and feeling like quitting.
The solution
In order to be a successful entrepreneur, it is essential that you overcome self-doubt. Seek the advice of your family and friends who know your goals. You could also reach out to fellow entrepreneurs who can advise and guide you as to how to overcome the issues you’re currently facing.