There is no doubt that
business owners do face a lot of challenges downtrodden their success in
business. However, problems usually faces by entrepreneurs are numerous but few
out of these problems are sensitive to business success if it can be given rapt
attention. How do some startups find a way to get through problems that cause
others to throw in the towel? They figure out how to recover after a failed
product launch, speed up cash flow during tough times, withstand the threats
from new competition, hire the right employees and find new customers.
Consider these seven
hurdles that small businesses typically face at some point and possibly
solution mechanism that can be use to overcome the problems.
1. Problem: Failed
product line.
Solution:
Learn and move on. When MyCubanStore.com looked to expand into the medical
scrubs market with a Guayabera-inspired line, its color choices were too wild
for many conservative hospital settings, says Alexis Martin, store president.
So the store discounted the line and corrected colors for the next run.
Try adopting new
product lines gradually rather than all at once, suggests Jonathan Fields,
serial entrepreneur and author of two books, including Uncertainty: Turning
Fear and Doubt into Fuel for Brilliance. "Do it piecemeal or do a first
order on consignment," something smaller vendors are often willing to do.
"One of the biggest mistakes business owners make is not asking for
different terms. It's amazing the number of people who will work with
you."
2.
Problem:
Shady suppliers or customers.
Solution:
Take precautions. Some online retailers have seen an uptick in fraudulent
orders. When something just doesn't feel right, dig deeper. Check out the IP
address and search for the name.
Equally important: Vet
potential suppliers. MyCubanStore.com quickly dumped an early distributor that
misrepresented its inventory availability.
3.
Problem:
Too much paperwork.
Solution:
Outsource and use effective technology. "The moment I have money to pay
somebody to handle core administrative functions or pay someone in-house to do
it, I do. It [paperwork] takes me five times longer, and it's not fun,"
says Fields. Many common office and industry-specific business management
applications are now available by subscription.
4. Problem: Outmoded
business model.
Solution:
Listen to the market. Other Internet retailers cut into VUTT Sunglasses' sales,
so owner Paul Lucca began optician training to provide a special service. Now,
VUTT can offer prescription sunglasses to its worldwide clientele.
5.
Problem:
Doing what you love … but no one wants
to buy.
Solution:
Research. It's easy to mistake your own enthusiasm for market opportunity, as
in, "If I love it, many others will too," Fields says.
"Researching to make sure there are eager buyers at the right price is
easier than ever."
Fields sensed an
opportunity when one of his blog posts – ranting about a business problem –
garnered a huge response. So he developed tribalauthor.com, which offers
training for authors in smarter ways to market books. Also, try floating an
idea through social media or checking out similar businesses to see what they
do right and wrong. Start your research with a list of questions that will help
validate your idea or highlight where changes are needed. Check out secondary
research available from industry associations, web searches, periodicals, and
federal and state agencies. You'll also need primary research – testing your
idea specifically – such as customer interviews, surveys or focus groups, on
your own or with the help of a professional.
6. Problem: Financing.
Solution:
Have something real – an actual product or service demonstration, not just a
poster or presentation – to show potential investors. Journey Gym, a maker of
portable gyms, won a competition for startups this way. "Make sure
investors feel like the opportunity is now to get involved," suggests John
Friess, Journey Gym's co-founder and CEO.
Consider alternative
sources such as kickstarter.com or microventures.com, where small businesses
can attract individual investors, thanks to the recently signed JOBS Act. That
made it legal for companies to raise as much as $1 million a year without
having to do a public offering, which is a costly, tedious process requiring
state-by-state registration.
Problem:
Too many competitors, not enough differentiation.
Solution:
Find a niche. It was trendy prescription sunglasses for VUTT, and
Cuban-inspired apparel for MyCubanStore.com. Customers flock to businesses that
offer deep product knowledge and a broad selection of the item they're seeking.
And remember,
entrepreneurs don't have to go it alone. Joining a support group like Oregon's
starveups.com or a business incubator program that provides services and
sometimes even office space to nurture new businesses can deliver much-needed
resources and advice. Also look into the new Startup America Partnership, which
offers guidance and connects new businesses with local startup ecosystems.
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to this article by adding your own view and conviction about the subject
Good luck!
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