Being an entrepreneur might be one of the best things but it also comes with lots of challenges.
The reason why it might be a challenge is because you will be running the business and everyone has his or her eyes on you for solutions and strategies. So, it is never a bed of roses as many might think.
There is always a market niche that needs to be explored in any environment. That is why to date; new business ideas are developed and are always executed.
The execution is what will determine whether you will be successful or not.
Some businesses are good but they may fall short of your expectations. To avoid such surprises and regrets it is always good to have an idea of the following things before commencing any business.
Nature of business
Businesses differ in nature. You should always do your homework on whether owning a business alone is better than partnering with someone. Evaluate and know the benefits of each option. Establish your objectives from the beginning.
Do you want to be a sole trader or part of a limited company? Things you may need to know probably involve the profit margin and also the tax paid.
Different businesses attract different taxes. The only challenge to many is whether they can manage to pay the taxes levied.
The other fact is that sometimes your profit margins may be way below normal, how will you meet taxation requirements?
The benefits of being a sole trader are that you will able to enjoy the profits alone while as a company you may have to split the profits.
The question is which one sounds better for you? One thing you should always remember is that both businesses generate profit and they all pay tax for being functional.
Competition and business plan
What most people don’t understand is that there will always be competition. The competition is supposed to push you to greater heights.
Before you start your business, find out how many other companies offer the same thing? How will your business be different from your competitors’? How will you ensure that you acquire loyal customers? All these are some of the top questions you should ask yourself.
If you have the answers to such questions, then you are good to go. The competition will always be there. If you find a long-term solution on how you will keep your rivalries at bay, then go ahead and start your business.
The other thing to worry about is how do you get a successful business plan?
For any business to be successful, it requires a map that will always be a reminder of how it is doing as a business. The plan should outline the goals and objectives of every department of your business.
The goals should be measurable over a specific period of time. This is what will make your business idea be achievable in due time.
As an entrepreneur, you need to identify your client base. How do you know to identify that? Your targeted crowd should be easily accessible.
Some businesses are not legal in some countries and at the same time they might be permitted in some countries but have an age limit.
You might be offering products that only make sense to children between the age of 8-15 years. If you will plan on venturing into the beverage industry, then you will need to know the type of beverage accepted in each state.
Some states allow alcohol drinks but have an age limit. In some countries, alcohol can’t be sold to persons under the age of 18 years. So, you need to align your business to a specific target. This will help you discover and explore the best marketing techniques.
Payment and accountant
How do you pay yourself? Anyone who hasn’t owned a business before might think that the business owner always takes home all the profit.
If you start a business with such a mentality, then you will fail terribly.
The business needs to run itself without any external funding like from your personal account. You need to have a payroll that will serve all your employees.
One thing you should always remember is that you are an employee of your own company. So the salary you wish to be paid should be reasonable and included in the salary chart.
The main reason why the owner of the business doesn’t take home all the profit is that the business will require equity to enable it to conduct its daily activities. This is why you should consider hiring an accountant who will always keep track of how every financial activity is conducted. This is one way of ensuring you don’t misappropriate funds of the company.
License and legal challenges
For your business to be legally recognized it has to be meet certain qualifications. From these qualifications, the agencies involved will determine whether you are legible for a license or not.
If you have a company that is not registered, then it means that you are conducting an illegal business. The penalty for such crimes can be hefty. To be on the safe side with the government, always ensure you have a license that permits the business you are doing.
You should also consider knowing whether the nature of your business is permitted in some places. For example, some countries don’t permit the selling and consumption of cannabis sativa.
Marketing and business identity
The main challenge when starting a business; is getting a name for it. Ensure the name you choose isn’t taken and also ensure that the name you pick means something to you.
The identity of your company should be catchy and easily memorable by many.
Another major thing you should always do your homework on is how you will market your business to the relevant people. Get yourself a marketing team that will handle that department.
If your business isn’t that big then it’s cheaper if you can try market your business over social media platforms. Social media platforms are free and available on most smartphones and devices.
They can serve as a good marketing strategy and also create awareness of your brand. It is one effective way of marketing if you have average marketing budgets.
Andrew Thompson is a freelance content writer. He has written many good and informative articles on different categories such as Web Design, SEO and Business.
He is very responsible towards his job. He loves to share his knowledge and experience with his friends and colleagues.Kindly note that we're affiliated to Amazon