Starting a business is a great journey. It means that you’ve decided to follow your dreams and empower yourself. From the moment you come up with an innovative idea to the moment you sell your first product or service, there are many exciting times. However, pursuing your own business also comes with different challenges. It takes detailed planning, plenty of brainstorming, advice from others, and resources to successfully run your own business.
The number of SMEs continues to rise. Australia is already home to over 2.1 million small businesses, and a new business is created every 100 seconds! Yet, despite entrepreneurship’s rising popularity, start-up culture brings its own unique set of difficulties and problems that need to be addressed if success is to be gained.
Let’s look at some of the major challenges you might face when running a start-up, and how to avoid or overcome them.
Finding the Right People
Finding the right people to work with is extremely important. You’ll have to make sure that those you want to include in your business know how to handle the tasks assigned to them with quality and efficiency in mind. Otherwise, you will find yourself struggling with sub-par products, services, or employee performance, which can quickly lead to negative reviews for your business.
But this goes beyond performance. Having the right people in your team also means working with those who share your passion or, at the very least, would like your business to thrive and grow. This helps improve communication and builds trust. If you know that you can trust and rely on your team, you will have more peace of mind.
Networking with other businesswomen is a great way to meet like-minded people. Not only to meet possible employees and clients but to also to promote a profile of your business. You can also use social media platforms such as LinkedIn to connect with people you think will be the right cultural fit in your business, as well as attend community workshops in your area to meet potential partners, employees, and even advisors or mentors. Having a good network means you can ask them for referrals for business or introduce you to potential employees.
Access to Funding
Funding is probably the biggest stumbling block when it comes to starting your own business. If you don’t have sufficient funds, your business might not grow as fast as it could or you might not be able to bring it beyond the initial growth phase. For female entrepreneurs, this challenge may prove to be even more difficult. Even today, many women still struggle to get access to needed capital for different reasons, from lacking connections to the certainly inaccurate stereotype or image of a successful businessperson.
However, there are many alternative ways women can try to gain funding for their businesses, including crowdfunding, partnerships, and seeking angel investors. Again, networking plays a crucial role here. When done right, it will lead you to the right connections that could help you gain more funding for your business.
Marketing and Spreading the Word
Effective marketing is vital for any business, especially for start-ups. You have to get the word out that you exist, and that you’re great at what you do. Failing to do so means less visibility and smaller market reach, resulting in not enough people to buy or avail of your products or services to fuel more growth.
What makes things worse is that start-ups usually don’t have a large marketing budget. The good news is, there are ways you can market your business without having to spend a huge amount of money. One way is through social media. Platforms such as Facebook, YouTube, and even Instagram are now being used by businesses both big and small to promote what they offer. If you have a good social media marketing strategy, quality content, and dedication to monitor your business’ social media profiles, you’ll definitely be a lot closer to successfully marketing your business online (and acquiring more funds for additional growth).
Dealing with Competitors
Start-ups often have to compete with larger, more established businesses. As such, it can be difficult to stand-out at first. This is where digital marketing comes into play—it basically helps level the marketing field since both start-ups and big companies can go online to promote their products and services.
To ensure that your business doesn’t get lost in your specific industry, you can also build strong relationships and partner with other businesses to promote your brand or get more leads and referrals. Aside from potentially getting more clients, this helps you create more buzz within your industry that will help spread the word about your business. The key here is to not to become overly excited or impatient. Poor planning or rushing things and being careless will lead to poor decision-making—it’s better to be strategic and attain steady growth.
Starting and running a business is one of the biggest decisions and challenges many of us will face in life. If done right, it could lead to financial security and plenty of exciting opportunities in the future. However, when running a start-up, it is important to make sure your business is sustainable. Think in terms of the “now” and the future. Will your business still be relevant in a few years’ time?
An important part here is basing your enterprise on an idea or concept that’s not just great on paper but also works in business. This means that it’s something that has consistent demand and you can tweak or improve on to better suit the changing market. It’s also important to spend time to do forecasting and market research to better prepare for what’s ahead—attending networking events, seminars, and workshops can give you valuable insights here. It’s critically important that you know your numbers – if you don’t understand your business casts, unit costs and you don’t understand how to interpret your profit and loss statement and balance sheet, get some help by way of mentor or do a short course. Cash is King!
Don’t Give Up
There will always be growing pains in the start-up journey and, as you try to expand your business, some of these difficulties will perhaps become even harder. However, with proper preparation in place and the right support structure, you can make a successful transition from being an early-stage start-up to becoming an established business. The secret is to not give up.
Adda Birnir, founder of and instructor at online tech-education company Skillcrush, says, “One of the most important things I have learned is that businesses don’t fail, entrepreneurs give up. Now sometimes, giving up is the right decision. But usually, you just need to dig in and figure out how to make things better. Remember: Every day is a new opportunity to get up and do it better than yesterday!”
More and more women are deciding to be innovative and walk on the entrepreneurship path. Factors such as trends in the marketplace, developments in the global business scene, increasing financing options, and mentorship are encouraging more women to become entrepreneurs. By learning how to face and deal with the aforementioned challenges, we’ll also begin to see even more women running and leading not just start-ups but also big, global companies in the near future.
For aspiring female entrepreneurs, it’s always a wise idea to seek guidance from people who can help you in your business journey. At Behind Closed Doors we work towards the professional development of women. With networking, peer mentorship, and other tools and resources, we assist business and career women help and guide each other towards more growth and success, whether as entrepreneurs or professionals. Contact us today to know more about how we can help you.
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