Entrepreneurship comes with a lot of challenges, but the biggest of all seems money management and sourcing of funds for the business, which if not done with precision and planning can lead to the devastation of the startup with time. Hurdles which cause the maximum tension for an entrepreneur are discussed here. You can match many of the situations with you and find a solution too.
The hiring process and time consumption
So much of time in consumed in the hiring process and so much of mind and effort goes into it that after all these if the employees do not retain, it’s heartbreaking and a waste of time and all the effort. The time is given for testing, hiring, speaking, training and all goes to vain, and you get back to the same old square. That is why it’s good to set realistic expectations before your employees and ask them what they expect from their employer and organization. Chances of retention can be eliminated to a huge extent, and good employee to employer relationships can be nurtured if you take care to encourage them to give honest interviews and also make a transparent impression of yourself.
Making out time is one of the biggest problems for entrepreneurs. There are so many things to be done, and the main decision maker is you. Hence, it may be difficult for you to manage time and do all the tasks alone through the day. Yet you will have to make time. And the best way to do that is to plan it.
The best way to plan time management is to divide the goals of the life into years, and then divide them into months, and then again divide them into weeks, and finally allow them into days. This way, through this back-calculation, you know what to do each day to accomplish your day’s goal, and gradually you start accomplishing your week’s goal, and then years pass by, and you discover that the life’s goal is accomplished one day.
While you get engaged in any task, always keep a mental check if you are doing the right task at the right time and if this task really needs time from you at present. Anything out of the way must be ticked off, and you may even outsource the job, or appoint someone to do that instead of you wasting your precious time on the unnecessary thing.
Depending on others often gets risky
It often happens in entrepreneurship that you plan something, gives the job responsibility to someone, and hope to get the job done at its best, but things backfire, and everything becomes a mess. Ultimately things come back to you. It’s you who need to do the job again, which results in loss of effort, time, labor, and sometimes reputation. This is a common scenario in any startup, and if you have faced this, don’t get surprised. But there are obviously solutions to this. The best you can do is:
- Hire the right employee for the job type, and while hiring do not compromise on talent, skills, and experience, if you want the best output from the employee.
- Specify your needs and instructions as clearly as possible in verbal and written, and make things said again from the mouth of the person who is given the job.
- If you are outsourcing, then find the best person or team to work on the contract.
The gap in cash flow
When there is a gap in cash flow, this can pose a serious problem. Suppose your complete order and then send the invoice to the client. And the client pays you again after 30 days. Then this gap will create a vacuum in cash flow resulting in the stress of payments and expenses. In the meantime, you will have to cater to every type of expenses starting from payment to employees, tent, and taxes, inventory bills, EMIs towards mortgages and all. And where would you get the money from if you don’t have the cash in hand? You can come up with a few solutions and avoid this.
You may tell your client to pay quicker. Instead of sending the invoice and waiting 30 days, you may send an advance invoice with a request to pay within 15 days, stating your financial stress and why you need the payment. Another solution is to ask your vendors instead to bill you later, and this way you will be getting enough time to get the payments from clients to the pay the vendors at ease. Another way, which is good too, is to take a down payment or advance payment for the service you are giving. If you take an advance or part payment while providing product, then your basic expenses of the month can be met from that down payment.
However, tough times come, and you may see too much delay in a few payments resulting in a real cash crunch. And if something like this happens, then you can get paranoid about your ongoing monthly payments. While employees may wait ten days for the salary, your creditors will not wait and keep on charging late penalties for each passing day after the due date. Things like this can creep deep down the system to bring you into heavy dues, where managing mortgages and loans can become a serious confusion and pain just because of the gap in cash flow. The solution lies in debt management plans like settlements and consolidated loans etc., which all are designed to help you manage such financial crunches and get over the situation.
If you are into the role of the entrepreneur, then many such challenges will come your way, and you will have to face them anyway. That’s because you just cannot run off, and being the leader you have to lead the rest of the business and team, and show them the solutions. Entrepreneurship is an art that you learn with time and even if you believe you were born a leader and entrepreneur, still challenges on your way make you more matured and decisive with passing the time.