Photo credits: rawpixel
Starting a new business is similar to bringing a child into this world because just like first-time parents, entrepreneurs can find it overwhelming to raise and establish their startups. However, you can find solace in the knowledge that you aren’t alone facing those challenges. There are 5 major challenges that all new businesses face, especially in this economy.
Lack of Capital
One of the biggest challenges new businesses face is the lack of funds or capital to sustain their operations and simultaneously achieve growth in a competitive market. It’s already difficult to break into a cut-throat industry, so if you don’t have proper funding, your project might fail before it even gets to leave the ground!
However, sometimes, if your business is one-of-a-kind and in-demand from the get-go, you might make healthy profits. This can create an illusion of having enough resources and cash in your bank to run the business successfully.
But what new entrepreneurs fail to take into account is the excessive capital expenditure that can sabotage their cash flow and reserves, leading the business to bankruptcy!
This is a major concern for new businesses during a particularly recessionary period because, during this time, the cash flowing into the business is slower than the cash flowing out. Moreover, this period can also force your creditors to cut short your payment time, further damaging the cash flow balance.
New businesses usually don’t have a backup plan or adequate resource management skills to cope with this; therefore, it’s advised by experts to save up capital for emergencies like these. In addition, it also pays to employ a professional to manage the cash reserves and for bookkeeping because it can start getting too complicated for you to handle on your own once your business picks up pace.
Finding the Right People
Another challenge that entrepreneurs who’re still paving their way into the market face is finding the right people to work with. When you set out with your vision and mission statement all set, it gets challenging to find genuine people whose vision also coincide with yours. In fact, at the start, most businesses are either as a family or owned by a family! In both cases, this small family can either work together and grow organically or show dysfunctional behavioral patterns and suffer from internal conflicts.
As a small business, it’s very important to pick out each member for their individual skill but it’s equally significant to analyze how they work as a team. Getting people onboard who each bring a different set of skills and personality to the table can be highly beneficial for your business. But if your team can’t seem to put their differences to good use, your venture is doomed!
Therefore, it’s important to find people who’re different from one another but at the same time honor harmony, teamwork, and your business’ interest above all else. This, however, can take time and energy because it’s difficult to find people that fit the bill even when the unemployment rate in the country is rising!
Building Integrity in the Industry
Ever since the economic crisis of 2007 hit the global economy, it has left behind wounds that still haven’t healed, even though more than a decade has passed!
This crisis has brought upon a moral challenge for businesses; employers and employees, alike are struggling to be more successful than their counterparts. This results in a compromise on business etiquettes and integrity between people as the driving force has now solely become money.
The competitive and brutal rat race has taken away the trust and integrity of businesses and replaced it with malice and deceit. As a result of this, businesses find it difficult to depend on their own employees, let alone 3rd party associates.
The lack of trust and dependability especially affects new businesses because more than anyone, they need genuine support in the industry to grow and flourish. However, since they have no or few options to fall back on or find someone they can trust completely, their chances of joining and subsequently winning this race are further minimized.
Although it’s a long shot, but as the great Mahatma Gandhi famously quoted, “Be the change you wish to see in the world.” You can set the standards straight by keeping your moral ground and remaining trustworthy even when you’re tempted not to be.
Keeping Up With Changing Regulations
Political stability is very important for businesses to flourish. While some policies can affect only a certain number of industries, there are many uncertain regulations and policies, especially financial and environmental that can prove detrimental for all businesses, big or small!
As the American economy dangled on what they called the “fiscal cliff,” it became increasingly difficult for businesses to maintain a smooth run. This is because even though Congress passed a resolution regarding the tax increase and budget cuts, the change in government can still overthrow it.
While it isn’t easy for big businesses to accommodate these drastic changes in policies either, they’re still more prepared for them as compared to startups that find it difficult to breathe amidst the chaos.
Therefore, it’s of high importance that businesses conduct a background check of the social and political atmosphere of any industry before trying to break in.
Once you’ve entered the market with the big giants and faced the challenges of finding the right people and uncertain policy making you’re still left with a business that has a minimum or no exposure to your target audience.
However, unlike the old times, it’s much easier to market your business if you employ the right strategies and professionals to do it for you.
Nowadays, smart businesses turn to digital marketing solutions to market themselves. However, smarter businesses know that the world of digital marketing is complex and can only be triumphed over if you have an expert like Makarand Utpat to guide you.
Famous for being the ‘Turnaround Specialist,’ Makarand Utpat has years of experience and expertise when it comes to optimizing your business on digital portals. His nonpareil knowledge of digital marketing strategies won’t only help you establish your business along with big giants in the market but will even provide you with a higher ranking than them on popular search engines, like Google and Bing.
Contact him now to avail his services and see your business grow out of major digital marketing challenges in real time!