It is common for individuals to leave a structured business organization to set up their own enterprise. Motivations vary from personal or family issues, desire to be independent from direct supervision and sometimes a belief that economic independence is readily achievable.
Achieving success as an entrepreneur in a small business has many challenges and here are a few:
• Financing
Perhaps the largest issue facing small business and particularly start-ups is finding the cash needed for working capital and funding growth. Banks prefer a minimum of two years of success to approve operating lines and private financers may not accept the risk often associated with new small businesses. This issue needs to be well thought out and planned so whatever the nature of the business it can survive those initial years of operation.
• Competition
Breaking through the noise and creating demand for your product or service at the start means competing against larger, better financed companies. It is difficult to compete without compromising pricing so new businesses may have to be more strategic and establish more benefits or value in their sales proposition.
• Creating awareness
As a new business the first order of business is creating awareness of your company in the marketplace. Since funding may be limited it is critical to maximize the efficiency of marketing dollars and to create a message that quickly attracts those first customers required to start cash flow into the business.
• Staffing
As a small business it is often difficult to attract top talent. First it is difficult, unless well financed, to afford the most qualified employees and potential candidates may be reluctant to join a small company unless it has a track record of success that can ensure a stable environment for the employee.
These are a few of the issues small business face but they can be overcome by being creative and agile in responding to marketplace opportunities.
Let me know what you think: gerry@polarisgroupmc.com
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