Tuesday, October 8, 2013

The Challenges Involved In Becoming An Entrepreneur

By Angel Dudley


In the past fathers advised their sons that need to settle down in a job, keep their noses clean and earn a decent pension at the end of the day. Women were expected to raise the family and to make sure that the household is properly managed. Nowadays people realize that there is simply no security. They have to take charge of their own destinies and that is why so many enterprising people strive towards becoming an entrepreneur.

There are any number of reasons why people decide to enter into the world of commerce. Some people think that they have excellent ideas that have not been explored before. Others are convinced that financial security can only be attained by owning and running a business. Yet others want to remain in control of their own lives and some even go on their own because they detest being subordinate to a boss.

It is unfortunate that so many new businesses fail within the first year or two of operation. In most cases this can be ascribed to the fact that the owners do not pay enough attention to vital aspects such as cash flow management and administration. They spend all their energy on the development of their ideas and they do not take the many mundane aspects of business management into consideration.

A novel plan is often a wonderful reason to start out in business but much preparation is needed. It is vital to perform proper market research and to evaluate market expectations. Many new businesspeople simply fail to understand that unless they prepare the market for their innovations they may not make any headway. Marketing strategies and issues such as pricing and distribution also need careful consideration.

Many successful new businesspeople opt for buying a franchise rather than starting a business from scratch. This may be a good idea because franchises offer proven formulae and they provide extensive support in the fields of management and marketing. Many franchise holders sharpen their business teeth on the experience they gain from being part of a bigger organization that offer direction and discipline.

Many small and new businesses fail because the owners fail to understand the importance of an operating strategy. It does not matter how small a business is, it needs to have long term plans and it needs to keep up to date on market trends. If this is not done the smaller businesses often find themselves overtaken by trends and market conditions.

Another common failing of entrepreneurs is the inability to delegate. They are, a first, required to be involved everywhere. In time however, and as the business grow, they simply cannot afford to remain involved in every single aspect of the business. Recruiting a winning team should therefore be an early priority. Trusted staff should be left alone to perform their tasks while attention is given to the real issues of the business.

Becoming an entrepreneur is a dream shared by many people. It is a difficult route, however. It is necessary to stay on top of the market, to develop new skill all the time and to learn how to trust others. Running a successful business can be exhilarating but falling into a morass of difficulties can be a nightmare.




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