Becoming your own entrepreneur and owning a business that you can feel proud of is all part of the dream. You won’t need to worry about dealing with a boss and you’ll be able to eventually make more money than you ever would at your 9-5 job. However, there are many challenges that the average young entrepreneur will face when trying to build a company that they can launch and project to their potential customers. Understanding these challenges and developing ways to overcome them will encourage you to be the best entrepreneur available.
Cash Flow Problems
Proper cash flow means that you will pay bills while checks arrive. Unfortunately, many young entrepreneurs need to pay bills before checks from their customers or providers start rolling in. The culprit for this is delayed invoicing and an inability to budget when bills need to be paid. To solve this problem, you need to send invoices quickly and work with collection agencies if customers refuse or are unwilling to pay right away.
Whether you own a warehouse, restaurant, you may need workers to help the business function properly. Trying to run a business on your own could mean ridiculously long hours and sheer exhaustion from doing everything yourself. Hiring workers is a task all on its own. You need competent employees who are willing to help and to pay them at a rate that you can afford. Taking out ads in local newspapers or online will help to get people interested in working for you. Don’t be afraid to be stringent when choosing your workers.
Managing Your Time and Schedule
Oftentimes, new and younger entrepreneurs work such long hours that they exhaust themselves and wonder if their business efforts are even worth it. To solve this problem, you need to manage both your time and your schedule. If you need time off, make sure that your workers are available to handle the company while you’re away. Time management also requires routine meetings with your employees and partners to figure out methods to solve business-related problems.
Dividing Tasks and Projects
There is absolutely no reason why any young entrepreneur should be doing all of the business tasks on their own. Not only will this tire you out quickly, but you can’t expect everything to be done correctly if you’re the only one doing it. This is where working with your business partners and employees comes in the most handy. Divide out the tasks and give everyone specific jobs to do while on the clock.
Understanding the Market
You might have a specific idea for a business and think that it will do well, but you need to understand the current and local market before investing your time and money into such a venture. While niche businesses have their own place, it can be difficult to keep one of these companies running if your local business isn’t interested in what you’re selling or offering. Even if you have a niche business, try to come up with a way to make it both unique and mainstream to attract customers.
The Ideal Marketing Strategy
Marketing is key to any successful business. If you fail to market and advertise, you’re not getting your brand name out there and people simply won’t know that you’re in business. Marketing can be done both locally and online by using brochures, business cards, flyers, social media marketing and search engine optimization.
Financing and Capital
To start any company, you’ll probably need some type of loan or financing to get the business going. Most businesses cost roughly $5,000 to $10,000 to get off the ground. If you don’t currently have this money, you’ll need to look into taking out a loan. Many banks are unwilling to give business loans to younger customers because of the failure rate of many new businesses, so you might have to look for a sponsor or family member willing to help out. If financing isn’t an option for you, your next choice is to figure out how you can start your business with whatever capital you have right now.
The budget you create for your business is key to keeping it afloat. If you’re spending more than you’re making, the business will eventually fail and you’ll be left with lost capital, collateral and a loan that still needs to be paid off. Many software programs can help you to create a business budget specific to your monthly and annual gains. Likewise, there are many expert financial advisors who can assist with creating a budget for you, but they will charge for their services.
Care for employees is one of the important factors entrepreneurs should take into account. It is a challenge to look after the needs and well-being of employees as they are the assets of a company. Try arranging yoga sessions and regular health check-ups to address common issues like plantar fasciitis, back pain etc. Motivated employees can be boon to your company.
Growth and Business Potential
If you expect your business to be a success and making you thousands of dollars per week within its first month, you’re sorely mistaken. It could take one to two years for your business to reach its full potential, and some entrepreneurs find that their companies don’t really grow to where they’re bringing in a lot of regular income until the business is about five years old. While it’s true that many new businesses fail within their first year, it’s also true that you need to give the company time to grow before giving up on it.
Competition and Self-Doubt
There is a lot of competition out there nowadays. Not only is there local competition that you have to deal with, but the internet comes with its own competition that could literally eat away at your revenue and confidence. A lot of entrepreneurs are doubtful about their business ventures and almost go into their venture assuming that they will fail. This simply isn’t the right mindset to have when launching and growing a business. If you believe that you have a good product or service and know that you will be a success, you’ll find that you reach more potential clients.
Just because you’re a younger entrepreneur does not mean that you shouldn’t try to create and own your own company. In fact, the sooner you begin a business, the more time it has to grow and the more time you have to learn how to increase revenue and client flow. If you need additional help with growing a company, there are many business advisors available to help with this task.