Developing a business is a challenge from the outset. The first two years are crucial in starting a business, many challenges will present themselves. It is the way in which you react to these challenges that will define your company’s reputation.
What are the challenges faced by entrepreneurs when they are their own business? What are the decisions they have to make to ensure growth rather than loss?
Many aspiring entrepreneurs want to register a business in affluent areas of the world; Australia, the USA, China and Europe. Each location makes it difficult for these businesses, especially those who are embarking on their first business venture.
What are the challenges of starting a business?
There are many obstacles to overcome when you first start running your own business. Consider the following list of challenges if you are embarking on a venture of your own:
1. Change the way you think!
You must learn to survive in the market. Having an adaptable approach will help you adjust to situations and circumstances that haven’t necessarily been planned. Take inspiration from competitors and build on their models.
2. Learn to formulate a company strategy
A large number of companies lack strategy as they reach a certain level of authority. As your company progresses through different stages of seniority, be sure to have a relevant strategy in place to give you an advantage in your current market.
3. Improve your service
Nothing beats excellent customer service, right? So spend time and money on developing your service. Today’s consumer is not only concerned with the quality of the product itself, but also the quality of the enterprise.
4. Learn to manage a differentiated workforce
Learning how to manage a workforce with lots of different personalities can seem like a neverending task. Having knowledge and experience in developing your team of employees is highly important. Building and maintaining a positive attitude amongst your workforce is an essential feature of a well-oiled machine!
5. Learn to deal with the relationship between ownership and control
Entrepreneurs should encourage the selling of their company’s shares to build rapport with influential investors. If you don’t want to participate in this cognitive method of growth, you will find it difficult to expand into wider markets, reaching more people.
6. Learn to deal with strong competitors
You must be prepared to compete with multi-billion dollar multinational giants. Cooperation with foreign companies is a solution, give your business a boost by forming an alliance with companies in international markets.
7. Learn to cooperate and integrate into the industry
Each enterprise is just one link in the overall value chain. Horizontal and vertical integration allows for the exponential growth of your business. If you’re looking to expand in size, diversify the products you have on offer or reduce competition, horizontal acquisition is recommended. If you’re looking to boost your profits, become more efficient as a company and increase the amount of control you have within your working sector, vertical acquisition is the one for you.
8. Undertake social responsibility
The directors are the smiling face of the company. They must bear this in mind when attempting to create value and establish a positive social image. Brand reputation is very important and often overlooked. Is it a key element to ensuring your brand gets the recognition it needs to succeed.
Starting your own business is often filled with challenges, periods of chaos and uncertain decisions. To handle these hurdles with decorum and overcome them successfully, you’ll need to educate yourself on what to expect. This way you can prepare for the tricky situations that will inevitably arise and deal with them in the most suitable manner.
Gaining business finance can be a solution to overcoming challenges. Let Lumi remove the guesswork. Give them a call on 1300 005 864 to speak to one of their team members regarding your business.
This article was written by Carla Adams, to contact email firstname.lastname@example.org.