Entrepreneurship is full of challenges, and you must be ready to overcome it with confidence to survive the intense competition. They must have the resources and courage to face the challenges which are very much part of their lives and learn lessons from successful professionals like Eric Dalius, who has set an example of how to become successful by overcoming the odds. The best thing about the challenges faced by entrepreneurs, both new and seasoned, is that despite being harsh, the challenges are also quite rewarding. No matter how long they have been in business – trying to keep the company profitable, establishing a brand and adjust to match the competition or even exceed it, everything is a challenge for entrepreneurs regardless of how many years they have been in business.
Here is the list of top 5 challenges faced by entrepreneurs today that discusses the cause of the problem and offers solutions so that you can take the challenges in your stride and operate an efficient and successful business.
Cash flow management – The Eric JDalius way
Despite knowing the importance of cash flow for businesses, especially small businesses, many entrepreneurs are unable to pay bills on time while awaiting the arrival of checks. Most of the problem arises from delayed invoicing, which is standard across the entrepreneurial world. You execute an order, raise an invoice, and then wait for the agreed credit period of 30 days for the payment to arrive, which is the likely scenario in the ideal case. Meanwhile, you must pay for everything from employees to contractors and for your grocery bills and mortgage. Waiting to make payments after receiving checks can make things complicated and expose you to a lot of risks.
Collecting a down payment for your products and services is one way to overcome the problem. It will help to cover the expenses for the sale together and bring some profit. Faster invoice payments are the other way to maintain steady cash flow, and the third way is to stretch the credit period you enjoy with your suppliers so that there is enough time for meeting your committed expenses.
The hiring process is time taking and quite stressful for entrepreneurs to go through it all by themselves. They must devote a lot of time to sift through heaps of applications to review resumes, meeting candidates during interviews, and then rejecting most of them to settle for the most befitting candidate. Finally, they hope that the package they offer will help to get the best people and even retain them.
The flood of unqualified candidates happens mostly because of some vague advertisement posted by you when searching for candidates as it does not have the precise requirements explained like the qualifications of candidates, job responsibilities, working hours, and salary/ wages and benefits offered for the job. Posting exclusive ads in the way you launch customer-centric marketing campaigns with all relevant details will save much of your time in screening candidates, and the time you spend for interviewing candidates will also shorten considerably.
Entrepreneurs have their hands overflowing, and doing too many things single-handedly creates serious time management problems. That is perhaps the biggest challenge they face. There is a feeling among entrepreneurs that lack of time is the biggest hindrance in doing justice to their abilities.
The solution lies in being smart and knowing how you are spending your time. It begins by making a list of your goals, starting with the goals of your life, and then breaking it down into yearly goals, monthly goals, weekly goals, and further detailing the daily tasks. By sticking to your daily tasks, it should help to address the bigger goals as you go up the ladder.
Remove any task from the list that does not align with your goals. Try not to do all jobs by yourself but instead delegate some tasks. Keep asking yourself if the tasks that you are doing right now completely justifies the best use of time.
The right way to manage time is to delegate some of your tasks, which often seems easier said than done because it might result in diminishing returns due to re-doing the work because the person whom you delegated the job made a mess of it.
Before delegating or outsourcing tasks, consider the reliability of the person or organization in handling the task because any wrong judgment about the resource will land you in problems. Be specific about what you want and write down the detailed steps about what you want them to do. Do not leave anything to chance and do not assume that the persons to whom you delegate the task will be able to think for themselves. Give elaborate instructions to ensure that they do not deviate anddo the task correctly. The more specific you are delegating tasks, the better will be the prospects of getting the right help the first time.
Arranging capital for business, whether for a startup or ongoing business is always challenging because the capital that you can manage will always be less than your need. Bank loans are the most traditional way for funding business, followed by arranging funds from family and friends. Then there is the option of a crowdfunding Kickstarter campaign. Take small steps to make your business grow instead of targeting to launch a multi-million dollar overnight. Think about some self-funded growth model so that you can depend on your business endeavors. Work consistently to acquire new customers but always try to be remarkable to your existing customers. Your goodwill will attract new customers as word of mouth spreads around. At the same time, develop systems and processes that allow you to delegate a task without compromising on quality. This could make your business grow slowly but at a steady pace.
Draw your plan about where you would like to see yourself in the next five years, by relying on your strengths instead of seeking help from others. This is the best option for small business owners to maintain the growth trajectory for business, although it will take some time.