In today’s highly competitive business environment, entrepreneurs face many challenges even though the government is leaving no stone un turned to provide the best of opportunities. Despite all of this there are specific roadblocks that these businesses are facing. These challenges are typical to every start-up. While some make it big, others struggle to survive or sell it off to a prominent or established organization.
Key challenges faced while growing your business:
Cash Flow Management
This is the biggest challenge faced by many SMEs and growing businesses. Cash flow is essential for the survival of any business, yet many entrepreneurs struggle to pay their bills and meet other requirements as their clients do not process the payments on time. Even after successful completion of the project or delivery of the product and sending the invoice to the client on time, it takes time before they receive the payments. The working capital flow management needs streamlining to enable young businesses to flourish.
Hiring right Employees
Many businesses commit the mistake of hiring people at a rapid pace as soon as they get funded. It is essential to understand the kind of resources and skills that are needed while hiring and also where they fit in the organization. The next step is to assess the number of resources that are required. Identifying the role of every person and clarifying the expectations will not only enable the person to take responsibility for their job or profile but also help the business to reach its financial goals.
For a small business especially a start-up grappling with the multiple statutory compliance and government policies is a tough task. The entrepreneur needs to get customers, ensure salaries are paid and also comply with the laws and regulations. It takes more effort for an entrepreneur to start a business in India than most of the other countries.
Availability of Finance
New businesses need adequate working capital. The finance is required not just for day to day operations but also to buy fixed assets. Certain Government schemes for entrepreneurs are mostly on paper, and SME’s have little option but to obtain loans from private players at a high rate of interest. A simpler online application process would probably help a small business owner to avail loans with minimum hassles.
Tax payments and schemes
To the tax regime have to be clear with little ambiguity. With the constant amendments to the GST law, this sector has been struggling to file GST returns on time. A single page simplified form is what is needed rather than the whole tedious and confusing process.
A clever business owner will build a community around himself which can be his support system. It would be prudent to do thorough market research and be clear about the prospective customer base and their requirements before investing into a business. And not just because someone else seems to be doing well.
Every successful venture builds itself slowly and steadily like someone once said: “Rome was not built in a day.”