Common Issues Entrepreneurs Face When Starting a Business. : ThyBlackMan

Friday, September 21, 2018

Common Issues Entrepreneurs Face When Starting a Business.

September 19, 2017 by  
Filed under Business, Money, Opinion, Weekly Columns

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( Starting a business is exciting and unnerving at the same time. As you navigate through processes to becoming a successful entrepreneur, there are things along the way that will need to be sorted out. Your new business and your quest for success will lead you down paths you never imagined and challenge you in ways you didn’t know were possible. The key to being successful at what you do is being fully aware of the issues that may arise and already have a plan of action on how to fix them.

1.  Covering Operating Costs

Whether you work from home or you have a small commercial space from which you run your business there are operational costs that will need to be covered prior to you making any profits from your business. Everything from utility costs and office supplies to staffing and marketing expenses will need to be accounted for. Many entrepreneurs, unfortunately, are working from the income they have from another job or funds they’ve saved up over the years. This forces them to make business decisions solely on finances which is never a wise choice.

Try to keep your operating costs as low as possible. If you don’t need a commercial space yet, hold off and work from home. If you need staff, allow them to work remotely. If you need office furniture or equipment, search for used and refurbished items to get a discount. Raising capital can also be an option. Starting a crowdfunding account, taking out a small business loan, or applying for grants in your state may work.

2.  Contact Information

Having a means for your customers to get in contact with you is important to the business. It also provides potential customers with a peace of mind that although you’re a smaller organization, you’re professional. Since they can’t afford to buy commercial property many entrepreneurs make the mistake of providing their personal information or leaving their contact information to nothing more than an email address.

There are digital solutions available to entrepreneurs that can be used to keep in touch with their customers. Rather than leaving your home address, for instance, an online PO box address provides you with a virtual address from which you can retrieve mail from without giving out personal information. Instead of using your mobile phone or home phone for calls, use applications like Skype or VoIP services to obtain a professional looking phone number.

3.  Staffing

Most entrepreneurs will find that as their small business starts to grow, so do the demands of being a business owner. The need to have help to continue to service your customers will become apparent. The only problem for most is, there isn’t enough money to hire a full-time staff. As a result, entrepreneurs will keep winging it trying to complete everything on their own which reduces the quality of work and therefore the brand.

Though hiring someone full-time means affording salaries, employer taxes, benefits packages, and overhead costs for your employees, there are alternatives that you can rely on when you need a helping hand. Outsourcing, for instance, is an affordable way to get help from business professionals without having the financial responsibilities of an employer. Other options might include a remote workforce or hire someone like a freelancer on an as-needed basis.

4.  Slow Periods

When you’re just starting out, the influx of customers may not be what you expect. There will be periods of highs and lows. Points where business is booming and times when it’s not. New business owners don’t plan for this and, unfortunately, end up suffering. Some focus so much on finding new business they forget to cater to their existing customers, others don’t budget properly for slow periods and run out of money.

Manage your down time accordingly. Pay attention to trends so you can see when things are slow. As you look for solutions to improve your business, remember to hone in on the existing customers and develop a relationship there. Lastly, it may be necessary to find other streams of income for down periods to continue covering operational costs.

No matter how much studying you’ve done on running a business, no matter how much you love what you do, there are going to be roadblocks along the way that you’ll have to overcome. By getting in front of these issues and creating a plan of action to eliminate the problem or minimize the risks, you’ll prevent your business from a lot of unnecessary turmoil.

Staff Writer; Barry Ross

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