Not so many people think of challenges when starting their business, for example, a fitness center franchise business. But, that’s just being disillusioned. There is no way you will have an all-perfect smooth sailing business no matter how great your idea sounds.
Look at some of the world’s biggest businesses and listen to what their founders have to say. They sacrificed their lives to be where they are now and they are still probably not where they wanted to be. Point is, challenges will be there from the moment you decide to embark on business. So, what are these challenges that you should expect?
This will hit you so hard, especially in the first year or two where business is yet to break even. To cushion yourself, make plans for an emergency fund or a plan B source of funds. This season may extend, so make proper arrangements. Cash-flow challenges can kick you out of business real fast because whether or not you are making money, expenses such as inventory, rent, and payroll are unavoidable.
You need extra cushioning and especially if you are in a B2B kind of businesses or any other kind of businesses that deal with other businesses.
Business Taking Too Long to Break Even
This is the hardest bit for every business owner. If you are not patient, this is where you put your tools down. But if you pull through you will reap the rewards of your perseverance and resilience. Of the 50 percent of businesses that fail within the first year, around 40 percent is because they were unable to break even within that first year.
What will help you pull through this dry period is having an emergency capital fund, a fall back financial plan that can sustain you until things look up. However, you should also know when to quit instead of pumping money to a non-viable business.
As a business owner, you might assume that there is no way that you can lack a good candidate to employ, but the truth of the matter is hiring is a tough task. Why? Because, most often, we hire based on the papers and how confident one was during the interview.
This does not necessarily mean the candidate is right for the job. Remember that interviews are rehearsed and people can forge their papers. The best and right candidate can only be known by asking questions that bring out their core values. Look for employees with values such as integrity and honesty. Otherwise, everything else can be learned on the job.
Maintaining a business is hard
Starting a business is hard but maintaining a business is ten times harder. Nowadays with the invention of technology, you can simply start a business in a matter of minutes. Buy a domain, register a business and get all the marketing tools online and your business is ready to take off the same day.
It is for this reason that businesses are becoming tougher to maintain. Because it is easy to start, so many people are starting businesses day in day out and so competition is becoming tougher making survival harder.
But, even with the challenges, businesses are cropping up every day and more and more owners are succeeding. All it takes is knowledge and the will power to succeed.