Challenges When Setting Up a Business: Things to Know When Starting

It is very tempting to start our own business. It gives a pride of working for your own. But starting a business is not an easy task. There are lots of hurdles on the way to start a business. Being an aspirant, you have to be aware about all these hurdles and be prepared for the same.

Starting a business takes a lot of efforts. Even if you start a business, after that you have to play hard role to take it to success. It may take 6-18 months to run the business successfully.  Initially, it will not fetch you any profits. You have to invest your money, time, efforts and lots of ideas to boost your business. It is not impossible task to start a business. We will try that how can we spend minimum amount of time and get success in our business?

To fight hurdles, you need to know the hurdles. This article is just to inform you about various hurdles in business that you face initially and you have to decide that how will you tackle them intelligently.

Challenges When Starting a Business

It is a matter of fact that every business starts with small and then it grows with ideas, hard work, investment, goodwill etc. Every big enterprise today is started from a small adventure. You have to tackle the adventure if you want to be an entrepreneur. You need to start from a scratch.

  • Work experience and knowledge: Many people who enter in to a new business don’t have enough knowledge about that business, industry and the games to be played in it. Most of the youngsters who want to step in to the world of business are totally unaware about the risks and work related to that. Doing a business includes lots of things and you need to take care for many of them. People don’t research properly because they don’t know what to research and how to research.
  • Finance: Finance is like blood of business which keeps it running. Initially it is difficult to get finance since people don’t trust on you easily. You can prepare a project report and explain them your ability and your plan. It is the most difficult task to get finance. Even if you get finance, they tend to charge higher rates of interest. If your plan is so strong, you can get the finance easily.
  • Staffing and Human Resource: You need trust worthy people to run your business carefully. It is not easy to recruit trust worthy people and efficient people for you. You need to carryout the process of recruitment and selection religiously. Every entrepreneur doesn’t know how to recognize the best candidates. Even if you hire best employees, motivating them is another big task. You need to practice enough control, direction and motivation to maintain efficiency and enthusiasm in employees.
  • Getting Clients: After starting your business, you need clients to keep your business running. You have to increase your public relation, you have to create a positive image in your target’s mind, and you need to market your self in market. In short, you have to position your existence in to minds of your clients and expected clients. You have to prepare promotion strategy to attract customers.

The story doesn’t get over once you get clients and customers. You have to maintain them so that they come gain.

So, these are the hurdles that you face at starting of a new business. You can solve these problems but be aware constantly.

Factors to Be Considered When Setting Up a Business

Everyone’s problem

  • Capital can be hard to obtain for individuals starting a business, especially if it is the first business they are about to start, since it’s the search for financial security that led them to consider starting a business in the first place.
  • Borrowed funds create an enormous pressure to repay the lenders, and this may discourage many from considering a loan.
  • Personal savings and kick backs from friends are not always enough, and may not be even sufficient for a simple bare bones establishment, let alone a fully functional, well equipped enterprise.

Skills and knowledge

  • Many small businesses need informed and experienced individuals to be able to run the enterprise with competence.
  • Transporters need qualified drivers, drivers need good logistical support, before logistical support is possible there has to be good financial planning, and before that there has to be a competent management team, and this applies to businesses across the board.
  • Every member of the business should be competence and serve the purpose they are meant to serve with a high degree of proficiency, otherwise they will become a weak point around which the organization will fail.

Competition

  • Every business that starts will encounter competition, and more so fierce competition whenever it is successful at what it does.
  • If the business starts in an established sector, it may be hard to win over clients and customers from experienced and well marketed brands. If it’s in a new product segment, new entrants will come up and attempt to bet a share of the market, a good example being the tablet market.
  • Constant innovation will be needed to stay ahead of the competitions as well as maintain that lead for the entire life of the business.

Marketing

  • After a business has started, needs to attract customers and retain them while continuing to increase their numbers.
  • The amount of funds available for marketing in the early days is usually small or non-existent.
  • New businesses have no rapport or established reputations and may have a hard time penetrating into some markets that have long running vertical business relationships.
  • Inexperienced staff, or an inexperienced owner may also complicate things by their lack of effective knowledge and expertise in reaching out o potential clients.

Legal issues

  • Businesses do have information that is private and confidential, from clients financial information to intellectual property.
  • These need to be protected and if they are not, they may be lost and cause the business to possibly face legal repercussions, maybe more consequences depending on the nature of the breach.
  • There are other considerations like location, if the location was not done in accordance to the laid out procedures then the business may be legally obligated to change location or face fines for breaching regulations.

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