Problems Faced by Entrepreneurs When Setting Up a Business
Entrepreneurs nowadays face many different challenges when setting up a business especially in today?s highly competitive business world. Some of the common problems faced by entrepreneurs are poor cash flow management, hiring the wrong people, poor time management, lack of sufficient capital, poor planning, competition and many more.
Good thing is that we have some tips that can help you resolve these common problems faced by most entrepreneurs when setting up business.
Managing Cash Flow the Right Way
Down Payment or Advance: Proper planning and budgeting are vital in maintaining good cash flow however, this will not actually always save you from the stress of paying bills. One great way of improving your cash flow is requiring down payment for your services and products, this can help you cover all the expenses associated with given sale or project and add some profit for you on time.
Generate Invoice in Shorter Durations: Another helpful way of improving your cash flow is requiring faster invoice payments. More companies and businesses are now requiring quick or immediate payments upon product delivery or project completion. For longer duration projects, it is better to bill monthly or biweekly.
Ask for Longer Time to Clear Your Bills: From the other side of the equation, you can also resolve issues on cash flow management is to ask for invoice to allow longer time for all your payments to go and the checks to clear. If you can successfully establish better relationship with your suppliers, they will be able to work with you once you?ve explain your strategies to them.
Hire only the Right and Qualified People
When setting up a business, hiring people is part of the process. Failure to hire the right staff and personal will surely result to several problems. Issues with hired people are usually one of the greatest problems faced by entrepreneurs when starting a business.
To resolve this, you need to be exclusive, strict and straightforward about the qualifications that job candidates must have. Terms and conditions with expectations should be clearly mentioned in offer letter.
Over staffing is also a big problem for startups, with limited funds if a company is over staffed, then it is more likely in trouble.
Proper Time Management
Poor management of time and schedule is also one of the common problems faced by entrepreneurs. The solution for this is to make time but be sure that you will be smart on how you are going to spend it. In order to do this, you need to create a clear list of your goal, be it annual goal or even long term business goal. If there are tasks that are not really aligned with your goals, eliminate them and if there are tasks that do not really need to be completed by you, delegate them.
Prepare the Needed Capital
Lack of sufficient capital is also another problem faced by entrepreneurs today. The desire to grow business and make the business succeed is there but there is no sufficient capital to do it. Good thing is that there are solutions to this. You can get funding through traditional bank loans or you can consider launching a type of business that compels with the amount of capital you have.
Watch the Video from Murray Priestley to Solve Your Common Business Problems
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