No one wants to be occupied for every moment with a gargantuan amount of work! But an entrepreneur has to face a tone of entrepreneurial challenges. The work of an entrepreneur is to coordinate business activities. However, the job is not as easy as it sounds. Giving orders is easy but following them is difficult. Thus we come across many entrepreneurial challenges.
Overcoming these entrepreneurial challenges requires expertise. You might be wondering, an entrepreneur sets up a business. He shouldn’t be the one worried about how it runs. He should employ personnel to look after his business. But setting up a business is just the preliminary step. Overcoming entrepreneurial challenges is the biggest responsibility of the entrepreneur. Following are some of the important entrepreneurial challenges and their solutions-
Doubting on Own Ability
- Challenge: Self-Doubt is harmful to a business. An entrepreneur must be sure about the actions he takes. He must have confidence in his abilities. Lack of confidence leads to error in judgment. Self-Doubt is therefore a big entrepreneurial challenge that must be overcome. Only then can the business organization become successful.
- Solution: For eliminating self-doubt, building up confidence is important. Having a goal-oriented approach helps. Entrepreneurial Challenges and hurdles are a part and parcel of business. Understand their priorities and set definite goals. Work towards achieving those goals. With time, you will fulfill your ultimate objective- sustenance.
Managing Time Efficiently to overcome the entrepreneurial challenge
- Challenge: Time is the most precious thing in an entrepreneurial environment. When a large organization is run, everything must be routine. Random actions don’t help an organization grow. Planning is an important part of running the business. Thus planning can only work if you manage time properly. Time Management is therefore an entrepreneurial challenge.
- Solution: Being methodical is the only way to overcome this entrepreneurial challenge. Allocate your tasks according to priorities. Divide your tasks according to the time required for completing them. Deadlines are important to maintaining. Therefore do not waste time on a single process. Make a list of the tasks which you want to perform on a given day.
- Challenge: Employee Recruitment is a prime entrepreneurial challenge. In a small organization, interpersonal communication is important. Thus each employee is an asset. Building a good relationship with them is the key to success. Motivating them to work hard is also an entrepreneurial challenge.
- Solution: Employees are the heart and soul of your business. Keeping a fair recruitment policy is important. Do not be biased while hiring. Judge the candidates properly before you give them an opportunity. Since your organization is small, you are in a risky position. Thus hire only those employees whom you think can contribute.
Choosing Products Carefully to overcome the entrepreneurial challenge
- Challenge: An entrepreneur’s challenge begins post-production. Products are the medium through which you represent yourself in the market. If your products are good and reliable, your business will grow. In a line of operation, understanding the product market is critical.
- Solution: Conduct Thorough Market Research. It will help you identify the strengths and weaknesses of the products. It will also give you an idea about what the consumers are thinking about the product. Address the grievances of the consumer. Their feedback will help your business grow. Selecting the product line is an entrepreneurial challenge. But with market research, this challenge can be overcome.
Choosing Marketing Strategy to overcome the entrepreneurial challenge
- Challenge: Marketing is one of the biggest entrepreneurial challenges. Your product may be qualitatively good. But unless you market the product, consumers will remain unaware of it. Choosing a proper marketing strategy requires knowledge about market conditions. Understanding the needs of the consumer is important.
- Solution: Brand Value creation is one of the primary methods to improve marketing. Target the group of customers you want to cater to. Understand their demands and create your product line accordingly.
- Challenge: Cash Reserves help in meeting daily business expenditures. The revenue you earn must be regulated. However, maintaining cash flow is an entrepreneurial challenge. The record of the monetary transactions must be kept. Salary payments of employees are met from the cash flow. Cash Flow position determines whether the business is incurring profit or loss.
- Solution: Preparing a budget expenditure statement is important. It helps you plan your expenditures. Keep an account of the income earned. Finally, tally it with the expenditures to find out the profit.
Threats from Competitors
- Challenges: An Entrepreneurial environment is monopolistically competitive. Therefore no business has complete authority. There are competing business firms to keep your authority in check. At times they sabotage your business ideas. Thus removing their threats to your business is an important entrepreneurial challenge.
- Solutions: Plan a unique Business Strategy of your own. Understand your resource requirement. Utilizing all your resources efficiently, draw up a business plan. Also, study the moves and actions of your competitors.
Choose a market niche to overcome the entrepreneurial challenge
- Challenge: Choosing a profitable business niche is essential to taste success. For this careful study of the market is needed. Unless you understand your expertise level, you will be unable to create a niche for yourself.
- Solution: This entrepreneurial challenge can be overcome by Target Market Analysis. Through this process, you will get an idea about where the business should focus on. Improved productivity is one of the advantages of this process.
- Challenge: Business policies lose importance and relevance with time. With modern innovations, new policies develop. Business Growth is listed as a major entrepreneurial challenge.
- Solution: Keep pace with the business activities. Employ modern means of technology. Give importance to customer satisfaction. This would help you increase your customer base. Consequently, your business will expand in size. Therefore a calculated approach will help you resolve this entrepreneurial challenge.
Thus it is evident that entrepreneurial challenges will exist in all business organizations. The approach through which they are overcome determines success. Rational Thinking is the key to eliminate these challenges.
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