Starting a business and building it from the ground up is one of the most exciting phases in an entrepreneur's life. However, every successful businessman will tell you that he faced a few stumbling blocks at the beginning of his career. The best way to avoid these pitfalls and forge ahead in this dog-eat-dog world is by recognising what these hazards are and working towards eliminating them altogether. We've compiled a list of a few obstacles that every entrepreneur is bound to face at some point and how you can avoid them.
Image : shutterstock
Cash flow problems
Maintaining a healthy cash flow is the lifeline of any business. As soon as you recognise the importance of having a steady inflow of money, you will be able to avoid this major stumbling block. Even when you face a lack of funds, it is important to not accept any random funding option without assessing the risks involved. Bad debt can only lead to a downfall in your business, especially one which is still in its nascent stages.
Lack of a talented team
Every successful businessman or woman will attest to the fact that they had a cohesive team right from the beginning to help make their dream of a flourishing business a reality. If you have a talented team of individuals who believe in your vision and contribute tirelessly to making your goals a success, you've won half the battle. Don't try to be an expert at everything or you'll end up being the jack of all trades and master of none.
Lack of proper planning
While it is true that failure will make you learn, you can't keep having repeated failures especially when your business is still taking off. A solid business plan always serves as a good foundation. Taking on a major project without proper planning of revenue and employees will only cause you to stumble. If possible, always run your plan past someone with a great deal of experience, who can provide you with sound advice.
Lack of self-belief
It is easy to be excited when you're developing an idea in your head, but when the reality of having to accomplish a million things before kick-starting a business sets in, you're bound to have the jitters. From getting the funding in place to hiring the right employees, the sudden surge of tasks can seem scary and it is important to surround yourself with people who will encourage and motivate you to help you get around this stumbling block.
Not identifying the right market
So you have your business plan well in place and you're all set to make your dream a reality. But what if you've made a mistake in identifying the target market? A market that cannot or will not pay an audience that is small in number or spread over a large area is a recipe for disaster. For example, the working class might love the clothes in your boutique but they might not be able to afford it. It is, therefore, important to set up your business after identifying the most viable market.
In addition to the above, there are several other things you should be cautious about when establishing your business. The stumbling blocks mentioned in this article are just a few things that can make your business fall to its feet.
How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line 'Coronavirus Disruption' to email@example.com