Writing a business plan is difficult, but it is necessary. A business plan is used for various tasks like establishing your business’s focus, securing funding and acquiring new investors. How you intend to use your business plan will affect how you tailor it, since every business plan should uniquely address your stakeholders’ specific inquiries.
Challenges to Entrepreneurs
- Cash Flow Management
- Time Management
- Hiring Of Employees
- Choosing The Product
- Delegation Of Tasks
Cash Flow Management
Cash flow as we all know is an integral part of all business ventures. However, instances are not rare when entrepreneurs struggle with bill payment while waiting for bills to get cleared. Delayed invoicing is a major trigger of these challenges of entrepreneurs.
This is the biggest challenge faced by multi-tasking entrepreneurs who often fall short of time while accomplishing their objective.
Hiring Of Employees
In reality, entrepreneurs dread job interviews more than the prospective candidates as it is usually very time-consuming.
Entrepreneurs need to review resumes, conduct interviews and filter out unqualified candidates for finding the ones who are best suited for the job.
Once the screening process is completed, entrepreneurs need to negotiate on the salary aspect for retaining those candidates without bleeding the company’s exchequer.
Choosing The Product
Entrepreneurs are often unsure about the products and services they wish to sell. However, it is imperative to take the right pick which can determine the ultimate success and failure in a competitive scenario.
Delegation Of Tasks
The successful delegation comprises of building the right process apart from providing the resources and authority required for its enactment. However, finding the right resources and choosing the delegation drive can be a very complicated task.
Solutions to Problems faced by Entrepreneurs
Proper planning and budgeting can be of great assistance in maintaining proper cash flow. These, however, cannot save you at all times from having to stress over bills. Entrepreneurs can improve their cash flow by demanding a down payment for services and products provided.
The down payment demanded should cover all associated expenses apart from guaranteeing a profit margin. Accelerating the invoice payments process can also improve the cash flow process.
The problem regarding time management can be solved by creating a goal list broken down into annual, monthly and even weekly objectives. Tasks which do not sync with your goals need to be eliminated while the ones which do not require the interference of the entrepreneur can be delegated.
Challenges relating to Human Capital
The challenges to entrepreneurs relating to human capital can be solved by being exclusive in terms of ultra-specific advertisements which assist in pre-qualifying candidates. The employee hunt needs to be approached in the same manner as that of a customer-centric marketing campaign.
A “walk-in interview” can be conducted for acclimatizing candidates with the working environment. Candidates can be enquired about their experiences, expectations, dedications as well as long-term goals during the screening process. Real references pertaining to candidates given by people who can attest to their potential and work ethic also need to be considered.
If entrepreneurs are not confident about selecting a prosperous niche, they can delegate the task to someone having adequate knowledge regarding the same. Be it service industry, retail e-commerce or publishing, adequate market research needs to be conducted for a complete SWOT analysis.
Challenges relating to Delegation
Challenges to entrepreneurs pertaining to delegation of tasks can be overcome by being ultra-specific. In spite of being time-consuming, entrepreneurs are bound to benefit out of the efficiency as they write down the detailed steps along with the individual responsibilities of work personnel.