There are various problems which new business owners encounter through the course of setting up their business.
Setting up a new business is difficult. Business owners must be ready to solve challenges that come their way daily.
Challenges exist in every new business venture. Still, creating a successful startup is not an impossible task.
Here are the most critical problems faced by new business owners.
No Sense of Direction
Some young business owners hurry to set up a business based on the passion for a particular hobby or skill that they have.
Many new business owners fall prey to fairytales they see and read on the internet and in movies. They think that starting and owning a profitable business is simple.
They are so excited about setting up their wholly-owned business and giving themselves some fancy title like Chairman, MD or CEO that they cannot prepare an adequate business plan.
In their excitement to be their own “boss”, they try to go it alone with no additional person for support or help.
They have no sense of direction on how to handle the legal, financial, human resources and other necessary aspects of owning a successful business.
They think they can “wing it” or worse “fake it till you make it”. These business owners soon end up becoming slaves to their business.
They get trapped in the everyday grind of working in their business rather than working on their business. Then, innovation and growth of the company suffer.
Lack of Experience
Lack of experience is one mistake made by new business owners. Have the essential expertise needed to start a brand new business.
Unfortunately, most young business owners only get a certificate or two from school and jump straight from the classroom to owning a business!
Though, there are cases of people like Bill Gates, Mark Zuckerberg, and so on that have become rich and successful business owners with no previous experience of owning a business.
However, the case of such people is the exception and not the rule. Most successful business owners have had the experience of working and learning the ropes of whatever business they are doing. They have put in the work. They have paid their dues.
Spend some time working to gain some experience and make some connections. Do your research, ask different business owners, read related books and blogs.
Because of the massive amount of data available on the internet today, it is possible that some information is false. Do your research and look for the authenticity of the data you use. Check its references, and so on.
You might end up with a significant loss if you begin your company without having the required experience.
Knowledge is power and change is constant. New facts and information about your industry and market keep emerging to replace ancient beliefs and trends.
So you need to keep learning to keep acquainted with the latest trends and innovations in your industry. Do not remain stagnant.
Start asking successful people in business about their experiences. Work for them and learn from them.
The phrase ‘time is money’ is correct, especially in this modern day where everyone is struggling to make a living.
Planning everything and ensuring everything is on time is crucial for the prosperity of any business enterprise.
Create a schedule and adhere to it. Give yourself ample time to execute your job with precision. Plan any business project you want to embark upon and make necessary adjustments.
Even if you are living in a developing country like Nigeria where things do not always go according to your plan, it is still necessary to have a schedule as a guide so that you do not waste your precious time.
Use calendars and planners to ensure you do not miss an appointment or a deadline. Your time when used well can save you money and earn you revenue.
Money is among the major problems that might lead to the collapse of your business. For a brand new company, the biggest mistake is expecting that you will make an instant profit.
Young and eager business owners begin a company with little money, assuming they will make huge sales and then invest that cash again in their small business.
This assumption is not correct. Many companies take several years before they make a profit. A good example is Twitter, that took 12 years to make a profit!
Experts advise not to expect a profit in the initial years. Always prepare for the worst-case scenario.
Before starting your business, make sure you have enough money to sustain you for around five years. Start slow and be patient. Take it ‘step-by-step’ as my father used to say.
The above post is my take on the most critical problems faced by business owners. What do you think? Did I miss out on anything? Let me know.
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