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When you decide to begin your entrepreneurial journey, you prepare for the courage to take on many challenges. Though eventually, these struggles will pay off pretty well, you need to persist in daily business operations. All are aware that half of the businesses fail within three years, that’s why even the banks ask for the business proof of past three years. All, however, don’t know that about 20% of businesses disappear within their 1st year.
As an entrepreneur, you might feel these challenges are unique to your business, but it’s not. We have compiled seven biggest challenges faced by entrepreneurs along with ideas to go about overcoming these challenges.
Sourcing the best employees
Hiring great people is crucial and often exasperating. Small and medium businesses find it difficult to hire the best employees because many people prefer to work in established firms. For you, it’s vital to have a pleasant working environment and showcase the work culture to attract new employees. Hiring through Facebook, LinkedIn and other social platforms is more effective and will be light on the budget.
Sourcing leads for business is not easy
Advertising campaign and many marketing collaterals are not what a small business owner can afford. So take your business to social media and start promoting; you’ll get better results for a cheaper cost. Also, as an entrepreneur, always find opportunities to personalise customer service. This will lead to a long way by acquiring new clients through word of mouth referrals.
Managing the budget
Keeping track of your business finances is critical. To manage this challenge, you must craft a strategy and estimate your expenses at the beginning. Appropriately estimating the cost of each project will help you prioritise tasks for higher effectiveness and with lower costs.
Risk of asset theft
This unfortunate event might happen when you’re already amidst the storm of challenges. Small and medium businesses cannot afford high-security systems like established businesses. Therefore, they face fraud and theft. To avoid this mishap, you can minimise cash transactions and use POS or swipe machines for business.
HIgh level of competition
Giving what the customers want is a major challenge for small business owners. As an entrepreneur, you need to come up with new solutions and improvement in the services. Providing a great customer experience is the best way to sustain customers and beat competitors. Like you, even your competitors are facing the same issue, so keep your calm and be confident.
No matter in which business you are, challenges will always strike you. How you respond to these challenges will keep you ahead of the curve. And never hold back your growth due to any financial hurdle. NeoGrowth can help you with collateral free loans to meet your unique business requirements.