Common Problems When Starting Out a Business and the Solutions
Taking risks is one of the major perils faced by the novice entrepreneur. It takes a great amount of persistence, patience and hard work to achieve the sweet taste of success. There are pitfalls before you could truly be a successful business person.
And to avoid tasting failure at the beginning stage of your business, anticipation of the worst scenarios that could happen is essential to overcome them. We have prepared the common problems faced at the early stage of a business and along with them are some pointers on how to deal with them. Check them out below for your reference.
Painstaking Business Registration and Compliance
Getting licenses or certificates of business registration from government agencies is never an easy task especially in our country. And there is no definite time frame when you could finish this first step. It may take a while from a month to three from getting your business trade name up and to the printing of invoices or official receipts.
If waiting in line and going back and forth to offices are not your thing, then we do strongly suggest for you to hire someone to do this for you. An accountant or bookkeeper can do the SEC or DTI, BIR registration and even getting the Mayor’s permit on your behalf. For sure, it will cost you some amount, but at least you could save valuable time and get into more important tasks. You can have more time for planning and financially preparing your business as you delegate this initial step.
The Quest in Getting the Right Team for Your Business
Getting the right team for your business is vital to your success. Worthy applicants are quite difficult to find, even if you will receive tons of applications in a day. Choosing the most suitable people for your team is definitely challenging and you would not want to rush into hiring employees.
Gather all the patience that you could have because scouting for the right employees really do takes time. You better start your hiring and recruitment earlier to prepare before the start of your operations. Utilize all the method of relaying information such as the social media like Facebook, Linked In and others. You can also seek help from your trustworthy friends and family that could have connections and the right people that are eligible for your team. If you have enough resources and are willing to spend on this step, you can always hire a headhunter to screen potential and more eligible candidates for your team.
The Challenge in Finding Your First Customers
Even if you have the most amazing product or service in the world, this step could be quite frustrating. Crowd of customers would not magically be drawn to you. And plenty of first time business owners do experience this devastating situation.
Ensure that you have a marketing strategy or plan in getting your customers. Identifying your target market and shooting your marketing campaigns and implementing tactics before commencing with your operations are very essential steps to overcome this business obstacle. It would also be helpful to do some research on your competitors before you start with yours. Identify how the trend goes and check out their products so you could come up with your fail proof marketing strategy and sell at the right time.
The Cash Flow Problem
A new business may be financially unstable at first and given with the painstaking first step of registration, some micro business owners do experience shortage in cash already from this. Sales and profit may not come immediately at the beginning stage of your business and there are fixed expenses such as rent, utilities and wages that need to be paid. This situation would be really troublesome for the novice entrepreneur.
Your business plan should definitely have a financial plan before you get started. Anticipation and estimation of all the liabilities that your business will incur is beneficial for you. Don’t expect that your business will generate greater revenues at first, especially if you are still finding it difficult to get customers. A financial back up plan is very important to cover your usual and unexpected expenses. Make sure that you have computed interest rate and mode of payment that you have chosen if your capital came from debt or loan so you could prevent cash flow problems in your business.
Losing Grip and Faith in Your Business
Starting a business is not an easy task and there are plenty of problems that you may encounter, but the worst problem that you would face is none other than yourself. Losing grip and faith in your business would be the result if you will let the weak side of you to take over.
Before getting anything done, you need to prepare yourself emotionally and mentally. Taking the plunge in the business wagon is not for all. Preparation in handling a business is vital before anything else. Research, study, acquire new skills, and develop patience and persistence before taking the first step. Surrounding yourself with motivating and helpful mentors, friends and family members are also beneficial for you, especially when you are feeling really low.
Determination is Key!
Starting a business is tough and being successful in this journey takes a lot of hard work and dedication. But if you are determined to have a successful enterprise you need to plan ahead and be fully prepared for anything that would come your way.