Starting a business can be quite easy and fulfilling. However, it can bequite complicated, and may challenge you in ways you had not imagined. Knowing the challenges and problems you may encounter in your start-up can help you to prepare for the unexpected, and possibly help avoid common pitfalls.
So many businesses did not succeed as a result of financial discrepancies . Bank study said that 79 percent of small business failures cited “starting out with too little money” as one of the reasons for the business downfall. Often, this is because owners borrow based on their ideas of a successful business, instead of borrowing for a worst-case scenario. A start-up business owner needs to be optimistic, but often is too optimistic about seeing profits. Without adequate cash flow, slow sales or a downturn in the market can end the business before it has a chance to gain momentum. It is not always advisable to start a fresh business with a loan, this is business of the loan interest coupled with the business upstanding.
Solutions to this :
always make to raise funds from another source apart from borrowing loan from either bank or other financial service institutions, you can raise business fund from partnership with someone, family contribution, personal saving from your previous work.
Low Marketing strategy
A common problem for new business start-ups is to hurry into elaborate print advertisements and radio commercials without knowing the target market and researching other market data. The costs associated with marketing and advertising can be expensive. If a business doesnot know who its target market is, then it may be a waste of money to print these ads that may contain incorrect messaging or have them appear placed in publications that don’t reach the company’s target market.
Solution to this :
Always plan your business marketing campaign to target the right audience. Use the the best possible platform to reach out to your lead. Map out the strategies and processes to follow.
Managing Work and Home
A business start-up requires a tremendous time commitment and a strong will. Add to this the financial stress of a fledgling business. Start-up business owners often have problems balancing the overwhelming demands of the company with the needs of a family. If the stress of the workplace spreads into the home, the business owner may feel pressure around the clock.
Solution to this:
During your business planning process, make it clear on how to run your business and avoid combining business with family issues, even if you are using home office, always make it clear with your time management.
Trying to Do It Alone
A common problem for most entrepreneurs is the belief that they can handle all of the start- up’s operations by themselves. It may be a cost-effective way to run the business, but operating the entire business on your own may not be a wise decision or the best use of your time. Many small-business start-ups may not require full-time employees. But it’s a good idea to have at least two teammates, a lawyer and an accountant, ready to help. With experienced, reliable assistance, you can avoid other common business mistakes. When it is time to hire staff, be careful in your choices. Employees are a crucial component in the success of your business.
Solution to this:
For small capital starters or boost rappers, always look for a team, even if it is on a part time bases, this will help to create a joint decision.
Poorly Priced Products, Services
Although you may be competing with the big box stores, you will most likely not be able to price like these stores. The nationwide and international companies obtain products at rock- bottom prices because of the sheer quantity of goods they orders and thanks to exclusive supplier contracts. Pricing your goods and services too low can delay the process of turning a profit. Instead of erring in this way, list fair retail prices, and make sure your start-up excels in customer service. You also should have a convenient location and hours.
Solutions to this :
Do not always settle for low price, your price should always focus on the quality of services or product your are offering. Making your pricing low does not necessarily mean that you are at a chance of winning a customer, because any genuine customer will also figure out the quality and nature of the service or product.