The 5 Key Business Growth Challenges Facing An Entrepreneur
Starting a business is a huge accomplishment for most entrepreneurs and the accomplishment of a lifetime dream.
Starting a business does, however, involve a lot of challenges and a high degree of risk but experience shows that the five most critical tests are outlined below:
- Depending on more than just one single customer
To keep the business afloat and to make sure that income grows there has to be more than just one single client – this also spreads the risk of failure and gives you an option in terms of where to focus your attention. The plan needs to be to work with as many customers as you can reasonably serve and satisfy.
- Manage Cash Effectively
Keeping a grip on cash allows the business to cover any expenses as they arise and having insufficient cash reserves is a primary reason for business failure. This is made worse by the avoidable temptation of overestimating income and underestimating costs and bills. If managing cash is a problem, then it is time to look at (sensible) borrowing in the short term.
- Avoiding Burnout
Starting with lots of passion and drive for your business is an essential to allow the business to succeed but excessive hours and constant pressure to perform will drain the energy of even the super-committed! A realistic approach to hours worked is essential if you are to give your best effort to the growth and sustainability of your venture.
- It all depends on you!
If you fell ill, and could not work, how will the business go on without you? What practical steps can you take to ensure if this did happen that the organisation you have created would survive/. Too many entrepreneurs, with all the right attitudes and drive, fail to plan for such an event.
- Juggling Quality and Growth
Once you have got your business on stable ground and achieve some good success with the venture there comes the thorny problem of how to balance quality with more growth. Your loyal and content customers are there but to scale up operations to make more profit, and to obtain economies of scale, runs the risk of putting your focus away from the loyal clients that have got you this far. Finding this balance is very difficult and can this be achieved by keeping your focus on growth, while allowing someone else to look after the consumers you have taken time to bring onboard? Finding this balance will mean the difference between success and failure.
By not paying attention to the challenges above always puts your business at serious risk of failure – keep your focus on them.
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