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  • Jared Jeffery Davis: Four Common Business Challenges That Even Seasoned Entrepreneurs Need to Be Careful About

    Published on May 11, 2020

    Having experience can be a massive plus for any entrepreneur, but that doesn’t guarantee the smooth running of a business. Both new and seasoned players have to deal with four challenges in their journey, no matter what. Here is a quick rundown on those common obstacles so that you can sail through the different phases of the entrepreneurship head-on and stay prepared for them.

    Money

    Almost 69% of small businesses fail due to the crunch of cash flow. Delayed payments can give you sleepless nights because most of the clients either don’t pay on time or release the sum too late. That’s why it is critical to continue with the day job until you have a steady cash flow. Once you are ready, you can embark on the entrepreneurial journey fully. It can be your smartest and safest decision for sure. You may have heard many entrepreneurs talking about the leap of faith, but it is always wise to dig your well beforehand so that you can handle the drought when it hits you. Many business counselors advise this.

    With this approach, you can build a sustainable and growing business using the time and resources in the best possible manner. It will give you room to deal with personal and company costs. Your actions can be thoughtful, allowing you to reach from one point to another organically.

    Legal advisors

    Any startup needs to have a trustworthy accountant, bookkeeper, and an attorney from the beginning. If you cannot afford to pay much, look for affordable services for basic paperwork. Don’t ditch them. While accountancy and bookkeeping experts can keep an eye on the company’s finances, a legal advisor from the related industry can help your business follow local and industry standards. Industry regulations tend to be stricter if you venture into the healthcare or financial sector. You can get in touch with local municipal bodies that look after business development or entrepreneurial associations and meet-up groups to learn about the latest legal rules and regulations.

    Equity

    Many aspiring startup people borrow money, believing that repayment is not an immediate concern. But this mindset can prove disastrous. You can get trapped in the debts and get stuck there. Since a large number of entrepreneurs have little or no money when they are starting out, lenders and investors tempt them with funds in exchange for a small share in the company. Please don’t listen to them. Seek advice from finance specialists, get clarity about interest rates, and don’t over-commit. At the same time, don’t jump into anything immediately.

    Technology

    Technological tools can be advantageous, but don’t run after anything just because it sounds like a must-have or promises to take your business to a new level. It doesn’t mean you should not add new methods and techniques. But whatever you choose has to be productive and beneficial to your company. You should embrace new technology only after conducting proper research and planning. Otherwise, the latest addition can disrupt a well-vetted process. Also, find out from your team if they can use the new tool you intend to introduce. Just make sure technological transition is gradual and not abrupt.

    As an entrepreneur, how you position yourself with your statements is very critical. It would help if you expressed it clear what your business is and who it targets. Plus, let your clients know why they should look forward to associating with you. All this can help you focus and avoid distractions.