Starting a business can be easy but growing a business and surviving a business can be a challenge to many small business owners/entrepreneurs,Through my experience i have discovered among 5 small business started 1 among of them can survive, Starting business can be simple but managing to its growth can lead many business owner/ entrepreneurs give up and come with a conclusion that business is very tough thing to handle , but you don't need to give up from your failures even if had happened, I think you are lucky to meet this articles if you are planning to establish a business,Read the following challenges in order to prepare your self to overcome this challenges which face new starting and small businesses.check also 7 Steps on how you can start your own business
1. To attract customers
I know everyone understand the importance of customers for the business, the challenge is how to attract customers to your business, Business owners should not only producing greater products and services but also creating better customers experience, Studying a customer behavior is important in order to understand how to serve them to the level of their satisfaction,but to study them can be a challenge to some business owner,New business or small entrepreneurs have the challenge in how to get customers,what strategies will you undertake in order to win the game?
2. Marketing
How your business can great a value before customers and enable customers engagement? This need talented and proven campaign, which can use Medias such as radio, TV, Newspapers, direct and online social media such as Facebook.Lack of resources (budget / people / time)Increasing visibility or generating quality leads,Choosing the right social media platforms for my business, Producing and delivering content takes a lot of time ,Keeping up with trends and technology Also you can like Products with high demand which you can sell online
3. Financial management problems
To manage cash flow is a challenge. Why? A business must understand the realistic working capital balance to manage normal cash trade, failure to understand that and when you capital involved in bank loan results in business failures.
4. Profitability
As with a cash flow many business fail to well understand due to the poor understanding of client profitability. Customer profitability (CP) is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period.
5. Ignoring procedures and principles
Many business owner don’t want to follow some processes when are running business, the reason is to make the process of running a business simpler ,failure to manage the processes include sales, Manufacturing, procurement, Marketing, HR, Distribution, Operations, and administration, by ignoring this important processes which should be managed leads to the failure of business.
6. Connections
Everybody is talking about collaborating and stakeholders. The secret to any successful business is the art of negotiation, both customers and supply chain partner do business with the people they know and trust, unfortunately for new small business owners there is never enough time to get necessary work done .
7. Poor Management
Many a report on business failures cites poor management as the number one reason for failure. New business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees. If the business owner doesn't recognize what they don't do well, and seek help, the company many fail and go out of business. To remedy the problem, small business owners can educate themselves on skills they lack, hire skilled employees, or outsource work to competent professionals.
Neglect of a business can also be its downfall. Care must be taken to regularly study, organize, plan and control all activities of its operations. This includes the continuing study of market research and customer data, an area which may be more prone to disregard once a business has been established.
8. Insufficient Capital
A common fatal mistake for many failed businesses is having insufficient operating funds. New business owners often don't understand cash flow or underestimate how much money they will need for startup and they are forced to close before they have had a fair chance to succeed. They also may have an unrealistic expectation of incoming revenues from sales.
It is imperative to ascertain how much money your business will require; not only the costs of starting, but the costs of staying in business. It is important to take into consideration that many businesses take a year or two to get going. This means you will need enough funds to cover all costs until sales can eventually pay for these costs. This business startup calculator will help you predict how much money you'll need to launch your business
9. Location of your business
Your college professor was right -- location is critical to the success of most local businesses. Whereas a good business location may enable a struggling business to ultimately survive and thrive, a bad location could spell disaster to even the best-managed enterprise.Read also 50 ideas of business to start at university
Some factors to consider:
Where your customers are
Traffic, accessibility, parking and lighting
Location of competitors
Condition and safety of building
Local incentive programs for business start-ups in specific targeted areas
The history, community flavor and receptiveness to a new business at a prospective site .
10. Lack of Planning
Anyone who has ever been in charge of a successful major event knows that were it not for their careful, methodical, strategic planning -- and hard work -- success would not have followed. The same could be said of most business successes.
It is critical for all businesses to have a business plan. Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.
Components should include:
Description of the business, vision, goals, and keys to success
Market analysis
Work force needs
Potential problems and solutions
Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense forecast
Analysis of competition
Marketing, advertising and promotional activities
Budgeting and managing company growth
In addition, most bankers request a business plan if you are seeking to secure addition capital for your company.
About the Author
Mussa Msemakweli is a technology entrepreneur, Book writer and digital marketing expert. He is currently C E O at the Africa shared . His work has been featured in a number of publications, including the Maisha halisi Magazine and on Culture trip. If you have a good time follow me on facebook and instagram or leave a comment, Thanks.
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