The Seven Biggest Challenges Facing New Small Businesses in the U.S
Throughout the course of managing a business, entrepreneurs encounter many problems. Due to the persistent nature of hiccups in a new business, entrepreneurs must prepare to solve problems that come their way. However, creating a startup is not an easy task, especially in the USA.
Generally, new entrepreneurs are naive about the problems facing their counterparts in the industry. Therefore, they may be not prepared for the problems coming their way. For entrepreneurs, it is prudent to understand that problems are an everyday part of every business. Afterward, face each problem with determination and a proper solution. As you make endeavors to maneuver the problems, it is good to know them and their impact on your new business. Below are seven problems in new business and their corresponding solutions.
Insufficient finances
Financial resources are known to be one of the major problems that can lead a business to failure. For a new business, the biggest mistake that an entrepreneur can make is expecting an instant profit. In many cases, young and eager entrepreneurs start up a business with little money and expect to obtain a fortune in a short period. Experts recommend entrepreneurs to obtain alternative financial solutions before making enough revenue to sustain the business. In the US, there are great capital options through the US Small Business Administration (SBA).
As a good practice, entrepreneurs should ensure that they have sufficient money to sustain the business for the first six months.
Lack of proper direction and Planning
Generally, this culminates from the failure of an entrepreneur to create a thorough and detailed business plan. Sometimes, entrepreneurs may be so excited about setting up their own business that they forget to create a business plan. A business plan is very essential for the success of a business. Without a proper forecast of the future of the business and the direction to achieve it, a business will fail. Fortunately, there are experts at Mount Bonnell Advisors can help you in creating a perfect business plan. Note that the plan provides the roadmap to follow in accomplishing the goals and mission of the business.
Lack of Knowledge or Skills
Many business advisors deem this as one of the topmost mistakes made by entrepreneurs. Most entrepreneurs fail to understand the knowledge and skills needed to the industry you want to enter. It is essential for an entrepreneur to have ample knowledge about the industry you are entering. In addition, understand the competitors, your target market, current trends, and applicable marketing techniques. Posting the right skills will help to quickly achieve the goals of your business. Unfortunately, one may end up incurring a huge loss if you start your business without possessing the required knowledge and skills.
Lack of Innovation
It is regrettable that owners of many new startup companies want to stick to the ancient book rules. They have no interest in creating an innovative culture. Consequently, people continually get accustomed to the work culture and they do not think outside the box. Entrepreneurs and employees detest change and resist whatever changes take place in the industry. However, it would be best for entrepreneurs to gain an open mind to innovation. Besides, prepare your employees when bringing a change. This will assist you in the adoption phase because employees will not see it as punishment. Rather, discuss the new changes with them in a meeting. You can go on to tell them how beneficial the changes will be towards achieving the goals to the business.
Failure in Time Management
The phrase ‘time is money’ is very relevant, especially for a new and small business in the US. For a new business, time is very essential. Actually, entrepreneurs should treat time management in all activities of new business as a crucial success factor. Planning in advance and ensuring the plans are successfully implemented in good time will lead to the prosperity of any business. For instance, it is prudent to ensure that filing tax for the business is done on time to avoid unnecessary fines. Spending time effectively can save you money and even earn you more revenue.
Getting and Retaining Clients
Without a doubt, it may be difficult for a new business to attract and retain customers. Obviously, it may be impossible to conduct vast marketing and advertising activities for small businesses due to financial constraints. Even with the difficulty in reaching prospects, potential customers may be hesitant to buy from a new business. Perhaps, the only thing they want to do is go for the business with referrals and longtime good reputation. The only remedy to this is providing excellent services and good quality goods.
Poor Marketing
Apart from a detailed business plan, creating a marketing plan is also essential for any business. Once understand your target market and your competition, allocate a budget for advertising and promoting your business. Furthermore, decide which medium to you would like to advertise through. It would be best to price your products or services based on target market analysis. Ensure that your pricing is affordable by your target market and that your advertising messages effectively reach them.
