The journey of a new entrepreneur is often full of exciting opportunities, constant learning and undiscovered knowledge. The challenge of new beginnings, of developing a successful business out of nothing and the hidden pitfalls along the way are all part of the dynamic landscape of entrepreneurship. What’s more, the rise of online businesses and the digital market also further complicate matters for the rookie entrepreneur.
No matter the business model, the biggest challenge for a new entrepreneur is distilling the seemingly-endless knowledge and experiences out there into achievable, well-grounded goals. Here’re some of the biggest challenges a business owner must consider when setting out on their entrepreneurial path.
Time Management
Time is the one resource all entrepreneurs have in common and managing this valuable resource to maximise progress and returns can be a tricky task. Though different individuals may be able to allocate their own frames of time in different ways, two key elements should be present in all business owners’ considerations when deciding how best to organize their schedules: setting realistic expectations and outsourcing where necessary.
It’s important to make sure that one’s potential is clear and their goals achievable. Having clear goals allows for better estimation of the time needed for each task. Additionally, it’s important to understand that no person can do it all, and some help from outside sources might be necessary to optimise the time resources available.
Financial Management
Money and cash flow management are some of the more difficult challenges for any new business, yet they are often the most vital for success. Many first-time entrepreneurs fail to capitalise on their ideas simply due to this lack of understanding.
A few basic strategies worth following are controlling costs, making use of investors, cash flow projections and taking advantage of government loans and subsidies. Also, it’s essential to find a reliable accountant and fully research the tax implication of any chosen business formation.
Marketing
Having the right marketing plan and budget is paramount to virtually any business’s success. Developing an understanding of various channels, outlets and strategies is critical, as this knowledge quickly translates into an array of publicity and engagements both online and offline.
A few tips include content creation to keep customers informed and engaged, understanding which platforms are in-line with the target and segmented audience, using proactive measures to reach out to customers, and staying on top of competitors’ strategies.
Sales
Having engaged customers is one thing, but it’s worthwhile for a business owner to stay conscious of the importance of sales. An entrepreneur must understand the basic models of direct, inbound and outbound sales, as well as be comfortable working with sales teams and developing sales structures and processes.
Management
Good management skills are not just a pre-requisite for running a successful business, but a must for making sure the business evolves in the right direction. Understanding operational and financial systems, as well as learning how to form the right teams and make all the parts click together seamlessly, are the keys to achieving this long-term goal.
Legality
Though it might seem tedious and boring, due attention to business law and legal protections forms an integral part of any successful venture. Failing to ensure that both external and internal activities are in line with prevailing regulations could be the death of even the most well-thought-out business.
Therefore, basic understandings of the law are necessary, as well as making sure to acquire any licensing and documents required. Additionally, sound legal advice, such as through incorporating the business, securing Intellectual Property and looking into other Risk Management measures all need due consideration too.
Navigating the treacherous but rewarding waters of entrepreneurship is an intimidating journey. Undoubtedly, there are numerous challenges that a new business owner must face and overcome, but to gain a successful momentum, these key challenges – Time Management, Financial Management, Marketing, Sales, Management and Legality – need be carefully considered.
Fortunately, with careful planning, teaming up with the right resources and a lot of dedication, any new entrepreneur can find their bearings and set their business up to discover untold achievements and successes on their new exciting enterprise.
