Challenges Entrepreneurs face when starting a business

“I don’t know the word ‘quit.’ Either I never did, or I have abolished it.”

(– Susan Butcher)
Challenges Entrepreneurs face when starting a business

In this blog, we will discuss what Challenges Entrepreneurs face when starting a business.

1.Why you want to start

2.Cash Flow Management

3.Burn rate

4.Marketing

5.What to outsource and to whom

6.Patience

7.Leadership

8.Vision

9.Planning

10.Examples

Conclusion

FAQ’S

1.Why you want to start

The first thing you should ask yourself is why do you want to start the
business?

You want to start it to earn money or to help someone?

You can not earn money without helping someone your business
should solve another person’s problem.

We will look at few examples

1.Amazon helped to deliver books to people which made it easier for
customers they solved the problem.

2.Xiaomi started providing mid-range phones under ten to fifteen
thousand and they captured the market very quickly. They solved
customer problems when no one was doing it.

2.Cash Flow Management

Many people do not know how to manage their cash flow and it
becomes a challenge for entrepreneurs while starting a business.

You need to learn how you can manage cash flow. How much money you need to save for reserves and emergency funds.

What is the tax slab for your business? How you will save tax legally?
What tax regime you will opt for?

FACT- Do you know 80% of businesses fail because of a lack of cash
flow management.

You can also read about Best Business Books to read

3.Burn rate

How much money do you need to survive and what is your spending
rate?

When people start their business they spend money countlessly
without thinking about anything.

This is one of the biggest challenge entrepreneurs faces when starting
a business.

They do not know what to spend, Where to spend and how to spend?

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4.Marketing

Many people do not know how to market their product.
It becomes very challenging for entrepreneurs while starting a
business.

Marketing is the basic skill these days if you want to start your own
business. Every famous entrepreneur is a good marketer.

In today’s world marketing becomes more important than the product how you will make people aware of your product is quite important in the 21st century.

Companies like Apple, Nike, Ford Motor, and Reliance spending
billions of dollars on marketing their products and services every year.

And other companies who do not spend a single penny on marketing
even they offer good products and services.

It shows how important it becomes for you and your business to
understand marketing and spend money on it.

5.What to outsource and to whom

When new entrepreneurs start their business they try to become a
one-man army and do everything on their own.

It becomes very challenging for new entrepreneurs while starting their
businesses.

They do not know what to outsource and to whom you need to
outsources?

You need to outsource work that is not very important for you and you
need to focus on your core work which you can easily do without
handling too many things.

6.Patience

You need to have a lot of patience because you can not become
successful without having patience.

If you want to start your business or are Some people are already
working on it, you should remind yourself that your hard work will pay.

Many people start their business but can not sustain it.

They think they will be successful in a day or month they dream of overnight success. Overnight success is not possible in a day or month it takes years and decades.

Challenges Entrepreneurs face when starting a business

7.Leadership

You need to become a good leader. Leadership becomes Challenge
for entrepreneurs while starting a business.

They lack leadership it is very hard for them to handle their team and
employees.

Many businesses fail because they lack leadership. Bad leadership also give stress.

FACT- Do you know 95% of businesses fail because of a lack of
Leadership qualities.

8.Vision

You need to have a vision of what you want to do with your business.

You need to have a vision of how your business will be and what
impact it will create.

Steve Jobs had a vision with technology how technology will
empower the world in the future.

Elon Musk is also working on his vision of landing a rocket on mars
by 2022.

You need to also have a vision of how things will work for you in the
future. What is your short and long-term vision with your business?

Challenges Entrepreneurs face when starting a business

9.Planning

I will divide this into 2 categories.

There are people who just plan and plan continuously but do not take
action.

I do understand planning is very important but it is not the only thing
you need to do.

You need to take action to start your business. Without taking action
you can not become successful.

In the second category, some people do not plan at all they just start things without understanding the nature of business what challenges they will face while starting a business.

They do not make a business plan they do not consider the above factors like cash management, burn rate, marketing, patience, and leadership, etc.

Examples

We, Will, look at few examples of what Challenges famous entrepreneurs face when starting a business.

1.Serum Institute of India

Serum Institute of India was started in the year 1966 by Cyrus S.
Poonawalla.

They use to manufacture vaccination for horses because they used to
own horse farms during that time.

After 2 years in the year 1968, they started to manufacture tetanus
vaccination for developing countries like India and Africa where per
capita income was low and countries can not afford vaccination then.

This was a big shift in their business from horse vaccination to tetanus
vaccination.

After that, they started expanding their biotechnology business and
started producing various types of vaccination for different types of
diseases like Polio vaccine and Diphtheria, Pertussis, Hib, BCG,
r-Hepatitis B Measles, Mumps, and Rubella vaccines.

It is estimated that about 65% of the children in the world receive at least one
vaccine manufactured by Serum Institute.

2.Elon Musk

We all know this guy is one of the biggest risk-taker in history.

But do you know his story?

We all know Elon Musk started his company but his vision was to
make low-cost and reusable rockets.

But he became successful 4th time and he was nearly bankrupt and
living in a rented house.

After he became successful, he got a project and funding from ISRO
and NASA, funded by the government.

After making Space X successful he started tesla and his vision was
way ahead of time in 2003.

His vision for making a Self-driving car in 2003 was way ahead of his
time but it was not easy for him in the year 2003 it took 8 years.

To make a successful self-driving car under budget and in 2010 they
started selling their cars in America and never looked back.

Now Tesla is the market player in the self-driving car market.

Also, they are planning to launch their model 3 car in India in
December.

He is the best example for upcoming entrepreneurs whenever they
face challenges while starting their businesses.

3.Flex-N-Gate Corporation

Flex-N-Gate Corporation was bought by Shahid Khan in 1980.
They are an automotive parts supplier company.

When Shahid started it was not easy for him to get clients.

The first client Flex-N-Gate Corporation got was a General Motors
Vehicle manufacturer but they ditched within a year.

After that Shahid struggled to get clients but after struggling for some
the time he started manufacturing parts for companies like ISUZU and
Toyota.

Now Shahid Khan is a Pakistani-American businessman billionaire worth 790 crores USD according to Forbes.

Shahid Khan is one of the best examples of what challenges
automobile Entrepreneurs face when starting a business.

Conclusion

In this blog, we have discussed what challenges entrepreneurs face
while starting a business and how to overcome them.

Also, we have discussed few examples like Amazon and Tesla, etc to
help entrepreneurs to understand how they can solve a problem like
them.

FAQ’S

1.Risks and challenges of starting a business.

There are many risks and challenges entrepreneurs face when
starting a business is lack of Cashflow.

2.Problems faced by entrepreneurs in India.

Challenges entrepreneurs face when starting a business is cultural
and geographical restriction. Some of the businesses may work in
Rajesthan but they will not work in Punjab.

3.Major challenges faced by social entrepreneurs

The challenges social entrepreneurs face when starting a business is
no one accepts and values them they do not get respect in society it
takes a lot of time for them to get recognition in society.

4.Biggest challenges facing businesses today

The biggest challenge entrepreneurs facing right now is most of them
do not opt for online mediums and now they are suffering to survive in
the market.

5.How to manage cash flow in business?

This is a Challenging problem new entrepreneurs face when starting a
business. Spend less on yourself, bootstrap your business, apply for
government schemes where they do not ask for collateral and some of
the schemes provide zero percent interest on a loan or very little and
work hard.

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