Most entrepreneurs are very happy at setting up their own business and they should be. However, they need to realize that maintaining a business is a bigger challenge for them. The good news is that there are many standard challenges facing all kinds of businesses, no matter what the type of the business.
Most of them cater to getting the right people for the right job, developing the brand and so on. However, there are some common points that qualify as the five major challenges in entrepreneurship. In this article, we identify these challenges and give you the means to overcome them.
1. Depending on A Single Client:
Everybody loves a client who plays well and on time without any delay. However, if more than half your income is coming from a single client, then you’re in for trouble. This is because you are more of an independent contractor than a business owner whose income depends solely on the client in question.
In other words, all the risks that the single client faces while working gets shifted to your company and your employees and this can have an extremely detrimental effect if your client decides to stop funding you due to lack of work.
For the reasons mentioned above, it is essential that you have a diversified client base that can protect you for the unforeseen situation where the client stops paying as the work dries up. It is also important that you graduate from a sub-contractor to a business owner and hence,you should not depend on a single client.
2. Managing Your Money:
Managing your money and finances is essential for both your business and your life. If you don’t manage your money properly in either sphere, then there is most likely to be a capital drain on one of the sectors of your life that will put pressure on the other one.
In other words, cash is essential for every business and a shortage of money will kill your business in the nascent stages even before it is fully developed. The only way in which most business owners can avoid a shortfall in cash is by increasing their income by doing a part time job or saving enough money while they are doing a salaried job so that they can then invest it in their business.
Another thing to keep in mind is that as the company grows the level of complexity in bookkeeping and accountancy for your business also grows. It is always better to seek professional help while doing this business as it gives you the required productivity and expertise that can make it grow to the highest levels.
3. Fatigue and Tiredness:
Most business owners spend much longer hours of their work in the office and this can result in fatigue and tiredness. No matter how passionate you might be about your business, the long hours of work can drain out the most motivated individual.
Added to this is the fact that most entrepreneurs are afraid to take a break from work as they feel that the business may slack or stall in their absence. This prevents them from taking a break from work so that they can recharge and get rid of their fatigue.
The key trick here is to take short breaks whenever necessary and let the work be done by a couple of trusted employees so that not only do you get a break from work, but you also gauge the capability and responsibility of your employees and give them the chance to work independently without your help and supervision.
4. Depending on the Solo Founder:
Many businesses suffer from founder dependence in the sense that the moment the founder leaves, the business starts sinking. A very apt example would be Infosys when the business started losing steam after Narayana Murthy left and he had to return to work as he was concerned about his business.
It is not just Infosys, but a majority of companies suffer from this problem. The only solution to this is delegating the reins of the business to other people although this is easier said than done. Even though there will inevitably be a compromise in the quality of the business, still there will be an improvement on the business in the long run and will make it independent of the founder.
5. Getting the Perfect Balance:
Every entrepreneur needs to get the perfect balance between mass scale production & meticulous quality inspection and this is where they need to get the perfect balance. There is a middle ground between shabby work and perfectionism and the business owner needs to walk down the Middle Way as mentioned by Lord Buddha in order to get absolute success.
Thus, we have discussed the major challenges in entrepreneurship and have given solutions to these problems that can be implemented very easily.