With the Indian government launching various schemes to promote small scale industries in India, local businesses have been mushrooming all over the country, with many startups making considerable impacts in the past few years. But it's not easy. Entrepreneurs face significant problems.
While companies like Paytm and Flipkart are an example of what a startup can achieve in a few short years, there are specific problems that almost all entrepreneurs face while starting.
Here are seven problems faced by businesses & how to tackle them:
1. Management of finances and cash flow
Obtaining funding for your business is one of the essential difficulties that all businesses encounter and must address to continue.
While you may have saved up some money to start a business, they don't last long, and you can't just rely on the subsequent sales check to pay the expenses and take care of the next step in business.
A consistent flow of income is crucial for small companies to succeed, and you should always have additional funds on hand to cover rainy and in-between days.
Many entrepreneurs struggle to make ends meet and, in some cases, do not even pay themselves to clear invoices on time.
What you can do is better manage your Business Process Optimization so that there are no late invoices and that you have adequate time between receiving the money, clearing the invoice, and paying your workers' (including your own) salary.
For this, you must ensure that you have a well-planned business strategy in place, which includes finances set aside to weather the worst-case situation.
Remember that you will have fewer financial resources and thus less room for error because you are beginning.
You will also not make a profit right immediately, so have enough money saved up before you begin and add to it as you go.
With the Indian government introducing different programs to support small-scale industries in India, local enterprises have sprung throughout the nation, with several startups making significant effects in recent years. But it's not simple; entrepreneurs encounter a slew of challenges.
While Paytm and Flipkart are examples of what a business may achieve in a few short years, there are some issues that practically all entrepreneurs confront when they first start.
2. Recruiting people and forming a team
We have all had interviews at some point in our life, and for many, it has been one of the most stressful times.
While we have all been in the above circumstance at some time, there are very few of us who have conducted interviews, and it is just as difficult if not more difficult because the bulk of you have never done it before, and so have no idea how to go about it.
The scenario is made even more difficult by the fact that you are doing it as a new entrepreneur and thus want to find that perfect applicant who not only fits your budget but is also adept at the profession for which they are being employed.
Picking the perfect combination team for a startup is similarly tricky since you have no clue how the team will operate together, even if the applicants are qualified and effective working alone or on their own.
As a result, it is recommended that you be selective and look beyond resumes and employment criteria and look for Business Process Optimization professionals. When posting job openings, be precise about what you're seeking, as well as the budget and benefits you're willing to offer.
Make it a point to specify what qualifications candidates must possess, the job tasks that will be necessary, and the hours and days that they will be expected to work.
This will save you a lot of time for those who will know the budget and obligations.
Once you've gathered a group of prospects, take them on a corporate tour to show them the type of atmosphere they'll be working in. This will offer you and them an idea of what to anticipate, and how they react with your team will indicate how they gel with your team.
You may also try reaching out to remote places since employees in small cities and villages frequently wish to relocate and, if trained, might be an excellent alternative for entrepreneurs.
Furthermore, for positions that do not require a person to be physically present in the office to function, seek competent individuals in other cities and states for Business Process Optimization. This might wind up saving you a lot of money that would otherwise be spent on building a virtual office for them.
This will also allow them to work for a firm headquartered in a metropolis and relocate when necessary.
3. Self-doubt and dealing with the uncertainty
Every entrepreneur, especially those just starting, doubts themselves and often questions if their business will work, be profitable, and survive with time.
They also often doubt if their product with work and if the customers will accept them.
There is no getting away from these questions, and none of them has a solid, reliable answer till you are in that position.
There are many unknown factors, and many of your long-term plans will often remain in flux depending on new developments.
Dealing with this volatility is one of the most complex parts of being a new entrepreneur and Business Process Optimization, and all you can do is remain calm and deal with them as they come.
Follow and promote work relaxation, and instead of getting discouraged, motivate yourself and look at your list of goals and tasks to do today and try to achieve them than worry about the unknown future that might or might not happen.
Making decisions is one of the most challenging and frustrating tasks businesses confront.
New entrepreneurs have a more difficult time making judgments because they frequently associate even minor decisions with how they will affect the firm and its budget. Self-doubt also causes people to question previous decisions and if they were correct. This is why you should focus on efficient Business Process Optimization.
It takes time for individuals to learn Business Process Optimization without second-guessing themselves and frequently experiencing decision fatigue.