Do you know about - 10 enterprise Challenges Every Entrepreneur Must Face When building a enterprise From Scratch
Free Bill Of Sale Form! Again, for I know. Ready to share new things that are useful. You and your friends.Are you an entrepreneur? If you are, then I believe you will well-known with the pattern or company challenges faced when starting and building a company from scratch. If you are not an entrepreneur but you dream of becoming one someday, then I think you will find this narrative worthwhile.
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Why am I writing on such a topic? I decided to write on the "10 company challenges every entrepreneur must face when building a company from scratch" to give entrepreneurs a behold of what to expect when they set out to start a new company venture. I am not writing to show my writing skills. Moreover, I am not a professional writer; I am an entrepreneur and investor to the core. I simply write to share my knowledge on building a company with anything who is willing to learn.
This narrative is not meant to discourage or scare you from going into business. Instead, I wrote this narrative to get ready and highlight you on the company challenges to expect and how to handle them. Just as the favorite saying goes:
"He that is ready has half won the battle."
Below are 10 company Challenges Every Entrepreneur Must Face When building a company from Scratch:
1. Developing the foresight and Idea:
This is ordinarily the first challenge faced by every entrepreneur. Looking the right company chance or creatively developing an idea is legitimately not an easy task. I call "Envisioning the idea" the first true task of an entrepreneur. As an entrepreneur, you must develop the potential to see what others cannot see. While others see problems, you must see opportunities.
But Looking opportunities is just the first task. The main challenge is going to be your potential to forge that chance into a company idea. I see this as a company challenge because the process of transforming opportunities into company plans is like trying to turn lead into gold. I call it the process of "Creating Value out Of Nothing." If you are not an entrepreneur, you might not be well-known with the process. The process of:
- Identifying a qoute
- Looking an chance in the qoute
- advent up with a explication
- Developing your chance into a company idea
- Integrating your explication into the company plan
Another way "developing the foresight and idea" will be a company challenge is that an entrepreneur must sometimes assume the role of a sorcerer. Let me explicate in detail. While others dwell in the past and present, an entrepreneur must envision and forecast the future. An entrepreneur must always be ahead of his time or else he might lose his relevance. He must have the potential to bring into gift what is yet to be. Let me give you some practical illustrations:
In the late 70s and early 80s, while Ibm saw increase in query for their mainframe computers, Steve Jobs envisioned a personal computer in every home and Bill Gates envisioned the need for easy to use software for personal computers.
While every person saw humans flying as an impossibility, the Wright brothers envisioned a flying machine.
Back in those days when cars were institution made and exclusively for the rich, Henry Ford envisioned affordable cars for the masses.
I believe with these few examples, my point is clear. Developing the foresight and idea is the first true task of an entrepreneur.
2. Raising Capital:
After developing your idea, the next challenge you are going to face is the challenge of raising capital. As an entrepreneur, you are the only one who knows the idea to the core. You are the only one who knows the story of the future. Trying to convince investors about something that doesn't exist is by all means; of course a challenge.
There is more to raising capital than just simply request for money. Most investors want to invest in already established businesses with minimal risk. When building a company from scratch, raising capital will by all means; of course be a company challenge you must face.
To overcome this challenge, you must develop the potential to sell your idea and foresight to possible investors. When I say "sell your ideas", I mean enhancing your transportation skill and your manner of presentation. In the game of raising capital, you must have a good story backed by a strong company plan. If you are interested in studying how to successfully raise capital, you can check other articles I have written.
3. Assembling a Team:
The third challenge you must face in the course of developing a company is assembling the right team. When I talk about a team, I am not talking about quarterly employees. I am talking about a "round table strategic company team" that will meet ordinarily to brainstorm on ways to grow your business.
As an entrepreneur, you are bound to have strengths and weaknesses. That is the more reckon you need to assemble a strong team that will cover up for your weaknesses. A team is a necessity in your quest to build a business. Now Looking a company team is just the first hurdle, transferring your passion and foresight to your team is the real piece of cake.
You must strive to make sure your team sees the hereafter you see. They must believe in your possibilities and must also be passionate about development that possibility a reality. If they can't grasp your vision, if they can't see they hereafter with you, then they are not worthy being your team.
Your strategic company team should contain your banker, financial advisor, accountant, attorney or legal adviser and any other devotee that will be of gigantic impact to your business. A query on your mind might be "how am I going to pay this team? My sass is I don't know. You will have to frame it out yourself or good still, you can think bringing them on board as partners.
If you are still at loss with the understanding of assembling a company team, then I will recommend you whether take some time in studying how to build a company team or you can visit strategicbusinessteam.com to get some advice.
4. Looking the Right Location:
You might feel that Looking a good location is a piece of cake but I bet you that Looking a good location at the right price is by all means; of course not easy. I don't have much to write on this but I feel it is worthwhile I bring it to your notice so you can get ready for it. The following are features you must think before choosing a location. These features are field to change with respect to the commerce of your business:
- convenient price
- Easy access to raw materials
- Good road network.
- Basic amenities and infrastructures
- enough Power supply
- Easy access to cheap labour
- Nearness to high traffic roads
- Moderate state and federal tax
- convenient Government fiscal and monetary course
- convenient federal and state laws.
- Current economic course and political situation.
5. Looking the Right Employees:
Most writers crank up the process of Looking good employees as an easy task. They define Looking an laborer as simply presenting the job narrative and the right laborer will surface. But I think it's more than that.
Those who are legitimately company owners know how difficult it is to find a hardworking, trustable employee. Most employees want to work less and get paid more. Looking a good laborer who will be passionate about delivering his or her services is quite difficult.
Employees are your representatives to your customers and the outside world. They are a reflection of your company culture and ethics. If an laborer of yours is bad or rude to your customers, it is going to portray a bad image of your company. So you must be true when hiring employees. Remember the golden rule of business; "Hire slow and fire fast."
6. Looking Good Customers:
The sixth company challenge you will face is the challenge of Looking good customers. Note the keyword "good customers." When in the process of building a company from scratch, you will come to find out that there are good customers and bad customers.
You must legitimately be on guard for bad customers. Good customers are legitimately hard to find. A good buyer will be loyal to your company and will be willing to forgive you if you make a mistake and apologize. A good buyer will try to do the right thing that will advantage both himself and the company mutually.
A bad buyer will always look for loopholes in the company's course to exploit and make some few gains. Bad customers will always try to exploit the company's goodwill and look for ways to rip off the company. Bad customers are responsible for bad debts.
Good customers build your company and bad customers will always try to liquidate your business. Just as you fire employees, you must also be ready to fire bad customers without hesitation. In the game of trying to find a new customer, always remember the buyer that sued McDonald's to court claiming the coffee was too hot.
7. Overcoming Competition:
Competition is the next challenge you will face. Most individuals see competition as a plague but I see competition as a good challenge. I see competition as a benchmark for creativity, the main motor for innovation and potential products at great prices. Without competition, there will be no innovation and without innovation, the world will be stagnant.
I see competition as a welcomed challenge and I want you to do the same. Competition keeps us on our toes and drives us to enduringly enhance our products and services. But you must be warned. Competition can make your company lose its relevance in the eye of your customers so you must always be on guard. At this point, I leave you with a quote:
"If you don't have a competing advantage, don't compete." - Robert Kiyosaki
8. Unforeseen Challenges and Expenses:
Just as a sailor prepares for unexpected storm, just as a pilot is always on the watch for unpredictable bad weather and thunderstorms, so must an entrepreneur be ready for what ever comes. Unexpected challenges can come in the form of:
- Unexpected law suits
- Inconsistent government course
- Not being able to make payroll
- Unpaid bills and taxes
- Unexpected seclusion of staff from sensitive office
- Bad debts from customers
- Loss of store share
- Dwindling working capital
- Inadequate stock or inventory
These challenges, if not handled properly can ruin your plan to build a successful company from scratch. Other challenge you must expect is an unforeseen increase in company expenses. If not handled properly, it might supervene in constant negative cash flow and eventually, the company failure.
9. Retention Up With industrial Changes and Trends:
Change in trends is legitimately a company challenge you must be ready for. Trends have made and broken lot of businesses. I know a lot of profitable businesses that have been wiped out by miniature industrial changes and trends. A typical example is the Dot com trend, where many industrial based businesses were wiped out by new web based dot com companies.
When the Dot com era began, company owners were left with only two options. whether they join the dot com train or they get crushed by the dot com train.
Seasoned entrepreneurs know that trend is always a friend and are always willing to speedily adjust their company with the current trend. Retention your eyes open to spot trends is legitimately a challenge but the big task will be your potential to speedily use the trend to your advantage.
10. Exiting the Business:
"In the world of company and investing, your exit is more leading than your entry. A good thumb of rule is this; exit before you enter." - Robert Kiyosaki
When building a company from scratch, you are going to face the company challenge of determining your exit strategy. Just as the quote above states, you have to plan your exit strategy before you even start the business. Most entrepreneurs run their company without any plans to exit and even if they have an exit strategy, they find it difficult to implement it.
Before starting a business, it is advisable to always plan your exit. There are benchmarks you can use to determine your exit from the business. Most smart entrepreneurs will use this benchmark as a target and once this exact target is reached, they exit the business. Examples of such benchmarks are:
- each year sales
- each year Turnover
- Asset Base
- store Saturation
- buyer base or estimate of users. This is more applicable to dot com companies.
Now when it comes to exiting the business, there are three exit strategies you can apply. The exit strategies are:
Turning over the company to professional managers: When your company reaches a unavoidable stage of maturity, you can exit by turning it over to professional managers. In this case, the company still belongs to you but you are not complicated with its day to day affairs. You will have to give up administrative role to assume the role of a watchdog. When you exit in this manner, you will have more free time to look into other projects or retire.
Selling the company privately: In this case, you are exiting the company by selling it to a private investor. In the company world, it is called M&A (Mergers and Acquisitions). After the sale and transfer of assets is complete, you have nothing to do with the company again.
Taking the company public: The unique thing about this type of exit strategy is that while you are selling your company (in form of shares) to communal investors, you still own and operate the business.
Please before you apply any of these exit strategy, I will recommend you consult with your attorney or legal adviser. But ultimately, it's up to you to determine the exit strategy you want to apply. always remember "your exit is more leading than your entry."
At this stage, I thank you for reading and taking your time to learn. Till I come your way again, remain blessed.
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