Entrepreneurship is rewarding but challenging. In the modern competitive business world, entrepreneurship challenges are growing day by day.
But, with a startup-ecosystem and technology advancements, the entrepreneurs are better equipped in tackling the roadblocks. I have found out about Carlo Parentela and Lynzie Kent have successfully launched their startups and have taken it to heights fighting all odds.
Here is a list of challenges that entrepreneurs face and what can you do to overcome those challenges.
1. Idea generation: You are confident about your business skills, but you don’t have an idea to start. You can’t decide your niche.
Let someone else do that for you. Ask your family and friends to suggest a product or service that they think will meet the society demands. Take help from a research firm and get a SWOT done for the market. Identify existing problems.
The solution to those problems is going to be your business idea.
2. Time management: Entrepreneurship requires hard work. An entrepreneur has to wear multiple hats in the startup phase and managing time becomes quite challenging.
You must work smart. Set your priorities for each day and make a to-do list to accomplish your daily goals. Do things that you are good at and take help from others for the rest.
Be patient and don’t try to rush things. Take consistent steps towards each milestone.
I have recently learned about Carlo Parentela who is a Vaughan entrepreneur, executive and restaurateur. He is the creator of several food concepts like Yo Amo Tacos. He also is the owner of Château Le Jardin Event Venue in Toronto, a popular location for weddings and corporate events.
3. Hiring people: People want to work with established brands and are usually sceptical about working with a startup. Therefore, it becomes challenging for entrepreneurs to find the right candidates immediately. Hiring becomes a time-consuming process.
Be specific with your job ads and mention all details clearly in the job description to avoid receiving unwanted and bogus resumes. This way you can save a lot of time in screening and interviewing candidates who don’t fit into your company’s requirements. Ask for references from your friends and colleagues or outsource it to a staffing agency.
4. Cashflow: Startups take time in converting sales to profits. They have to pay bills while waiting for their checks to arrive. Hence, struggle with cash flows.
While it isn’t always easy to get paid faster, you can improve your cash flows by asking for a down payment from your clients to cover your bills. They can pay the balance later.
You can also introduce faster invoice payments from your clients. Keep the invoicing period to 15 days.
5. Marketing strategy: With a plethora of information and marketing channels available, you get lost and fail to decide which way to go to maximize your advertising ROI.
The best way to sort it out would be to hire a marketing agency. They are experts in designing the best marketing strategy for your niche and target market. Explain to them your vision and goals, and they will spread your marketing budget across various mediums to help you achieve maximum returns.