Question

Q.1.4 Starting a new venture is immensely difficult and entrepreneurs must deal with
various problems including obtaining finance. Discuss any other six problems
entrepreneurs must overcome with obtaining finance

Answer 1

Starting a New business Entrepreneur facing many challenge & also overcome with these challenges, some of them are as below

1) Financial management

A steady flow of cash is essential for small business to survive and you always need to have extra funds to take care of rainy and in-between days.Many entrepreneurs struggle to make ends meet and at times don’t even pay themselves so they can clear the invoices in time.What you can do is plan your finances better so there are no delayed invoicing and you have enough gap in between getting the money, clearing the invoice and paying your employees (including yourself) salaries.For this, you need to make sure you have a well-prepared business plan in advance and that includes funds set aside to weather the worst-case scenario.Remember you are new so you will have limited availability of funds, and thus you have less room for error.You will also not make a profit right away so have enough funds set aside before you start and add it in your business plan and budget accordingly.

2) Hiring people:
Picking the right combination team for a startup is equally stressful as you have no idea how the team will work together even if the candidates are right on paper and efficient working alone or on their own.Make sure you mention what qualifications candidates must have and what the job duties would be required and what hours and days they would be working. This will save yourself a ton of time as people who would apply would be aware of the budget and duties while applying.Once select employees take them on a company tour and show what exactly would be the environment they would be working in. This will give you and them an idea of what to expect and how they react with your staff will give you an idea of how they gell with your team.

3)Decision-making
New entrepreneurs have a harder time making decisions as they often equate even small decisions with how it will impact the company and its budget. Self-doubt also makes them question the decisions they have made already made and if it was the right one.
It’s is only with time that they learn to take hundreds of decisions a day, big and small, without questioning themselves and often facing decision fatigue.

4) Criticism:
As a new entrepreneur, you might face it more and would be constantly warned about the various ways your business can fail. Sometimes these critics might even get personal as they’ll feel jealous of and threatened by you.
As a good entrepreneur, you need to learn to face them head-on and separate the wheat from the chaff.
Basically, you need to look at genuine criticism, evaluate it and fix them so you don’t face it again.
Put aside unhelpful comments and ‘advice’ and use the genuine one to take your business further up.

5) Finding customers:
It’s really hard to attract customers for any company that is starting out especially if they are a business with limiting marketing budget.
This problem always plays on every entrepreneur’s mind and the fact that people tend to stick with well-known brands they’re familiar with makes it harder for them to sell their products.
But new companies hold a big advantage over brands and that is their pricing is much cheaper than their rivals.
If they provide a high-quality product at a much cheaper rate than their rival, they will not only be able to attract new customers but also retain their customer who will become loyal to them over time.

6) Time management
When you are starting out with a new business time management might be one of the biggest problems faced by entrepreneurs.
While the limited time and funds are something that no one can control, what you can do is have a strict schedule that allocates your time and money to each task.As a newcomer, you cannot afford to waste time as it will only cost you more in the long run and you thus you need to be smart about allocating each minute. For this, you need to create a goal list which is divided into weekly goals, monthly goals and annual goals.
Plan your week accordingly and break them down into specific tasks for each day. When you focus on achieving your daily goals you will automatically reach your weekly goal and in turn your annual goals. This will also help you keep track of things and let you know where you stand the long run.