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4 Challenges Faced By Entrepreneurs

Date: 2020-03-19

Entrepreneurs are self-starters. They are passionate people who don't need an office or a boss telling them what to do because they know it is up to them to get the job done. But that doesn't mean they don't face challenges. Every business, no matter how big or small, faces challenges at some point in time.
Being an entrepreneur and becoming successful is not an easy task. One of the very first ways of ensuring success in your entrepreneurial journey is to make your concepts unique in order to stand out amongst your competitors. Keep your financial resources highly available and dedicate sufficient time to manage your workflow.
As an entrepreneur, there are challenges you will have to overcome on your way to the top. Entrepreneurs are commonly known as businessmen because they take the financial risk of running businesses. They are resilient, persistent and highly committed to what they have set out to achieve and that is why they have a higher level of success.
When a person decides to start or run his/her own business, there are a number of entrepreneurial challenges that are likely to be faced. Real entrepreneurs who love what they do don’t let these challenges stop them from starting or running the business of their dreams. The following are the 5 most common challenges faced by entrepreneurs and solutions to solve them by a business advisor. If you are an entrepreneur, these solutions will give you an idea on how to solve your current entrepreneurial challenges in Ghana. Meanwhile, if you are an aspiring entrepreneur who wants to start their own business, what out for these challenges and also learn ways to solve them when they come your way because they are not inevitable. These are real world challenges and practical solutions to help you solve these challenges as they arise. Challenges 1 1. Time management: Time management is the most important challenge faced by any entrepreneur. Time is precious and it's essential that business managers are capable of multitasking with various activities to get through their work day. Being an entrepreneur, most of them are busy taking over responsibilities like manning the store, preparing invoices, delivering goods, preparing orders or other loads of tasks to deal with.

 

Solution by a business advisor,

  • Initially, break down your goals into daily, weekly, monthly, and annual tasks or sub-goals. Once you meet up with your daily goals, the rest is automatically sorted.

  • Work with priority, consider tasks which require high priority and avoid tasks that don't serve the future of your goals.

  • Consider using various business organisation management tools like Zapier, Google Calendar, Asana, etc to manage your daily activities. Most of these tools are easy to use and super-efficient to manage your daily work! 

  • If any tasks do not mesh with your goals, eliminate them.

  • If any tasks do not absolutely have to be completed by you, delegate them.

Consistently ask yourself: “Is what I’m doing right now the absolute best use of my time?”

 

2.Managing cash flow

Understanding cash flow is simply understanding how money flows in and flows out of your business. This means that you have to track and account for every money that flows into not just your business but also your personal life as well. 

Cash flow is significant for the growth and stability of a business. Most of the entrepreneurs struggle to pay out their bills and meet up their monthly invoices. Performing a job, sending invoices and hopefully getting paid within 30 days is common in the entrepreneurial world. Waiting to get paid makes it difficult to accomplish your monthly goals.

What are the solutions to manage your cash flow?

Business advisors suggest the following practical solutions for effective cash flow management,

  • Prefer shorter invoice periods like a couple of weeks. So, in case of delayed payments, you can pay your own expenses on time.

  • Down payment is one of the safe options to move ahead. Down payment with profit margin makes the equations easier.

  • Negotiate with your vendors to increase the invoicing period of goods or services you are purchasing from them for a 45, 60 or even 90 days period so that you get enough time to collect your payments and pay vendors on time.

 

3. Startup or investment Capital

Capital investment is a big challenge while starting off with your business or even when you are looking for investment to grow your business. Not every business is rich with financial support and other resources.

How to raise capital by a business coach?

A business that needs to grow and reach its full potentials requires investors with funds, but how you are able to attract these investors with funds into your business is a skill you need to learn.

Some few ways you can raise capital for your business are:

  • Apply for bank loans

  • Seek for funds from friends and families

  • Bootstrap your business

  • Use accounting tools like FreshBooks, Pabbly, Xero, etc to keep track of your expenditures and incoming payments.

  • Improve billing and raise invoices to expedite payments.







 

4. Marketing strategy

This channel is usually caused by inadequate information on how to market, that is, to get people to know about your product or services. 

Building a marketing strategy is a big challenge faced by entrepreneurs. Being new to business, they don't know the best strategies to sell out their products or services. It's really important to target the right customers, study the competition level, prepare a business plan and model strategy, and choose the best marketing platform.

How business advisors help entrepreneurs overcome this challenge?

  • Create marketing plans that are flexible, feasible and easily attainable.

  • Marketing is not a constant duty, so they keep it updated according to the changing needs and demands.

  • Again, if you’re not adept at, it’s a good idea to do it.

  • Outsource your marketing strategy to someone who is capable of creating marketing plans and placing ads if you are not good at it.

  • Understand who is your audience, and what marketing activities will you undertake to motivate purchases

Successful entrepreneurs always find a unique way to reach their goal! Getting advice from an expert business coach makes it easy. Whatever may be the challenges, analyse them appropriately and find an effective solution with the best available resources.



4. Delegating Tasks

The challenge: You know you need to delegate or outsource tasks, but it seems every time you do, something gets messed up, and you have to redo it anyway.

The solution: Find good employees (see above) and good outsourced contract help, for a start. You might have to pay a little more for it, but the savings in time (and the resulting earning potential) more than make up for it.

Next, be specific as to what you want done. It will take a little more time at first, but write down detailed steps listing exactly what you want your help to do. Don’t make assumptions, and don’t assume your help will be able to think for themselves right off the bat. So, don’t say, “List stats in a spreadsheet,” when it's more effective to instruct them to “Alphabetically list XYZ in the first spreadsheet column, then list statistic A in the next column,” and so on. It might seem like overkill, but take the time to be specific once, and your help will get it right every time thereafter



Conclusion:

The key to overcoming challenges is to know that you are not alone. We all face challenges, but we also have the tools needed to overcome them. In this article, we’ve provided you with some useful tips for staying motivated and avoiding burnout. 

 

Understand that you’re not the first to struggle. Because of that, there are many resources available to help you get through your darkest days as an entrepreneur, so you can reap the immeasurable rewards that come with building your own successful business.

 

Publish By: Samuel Davidson

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