Steer clear of these start up hurdles

It is a universally accepted fact that the most crucial stage of a business is the initial stage. This is the time when the entrepreneur with a fledgling company, can become so enthusiastic about the brilliant business idea that he or she loses all sense of objectivity. In the highly competitive business scenario that currently prevails, it is common to see many ventures falter at the first hurdle they come across. Business hurdles are always hot topics in many a boardroom and some of the hurdles which small businesses face but can steer clear of, with some planning and fore thought , have been discussed here.
It has been proved that the biggest challenge faced by more than 60 % of small businesses and start ups was not finance as one would have thought, but was PEOPLE. The hardest thing for small businesses was to find and retain talented employees who could change the fortunes of the business. In such a situation the best solution would be to give employees due respect and make them feel really special.

The second generic hurdle which halts small businesses in their tracks is the government regulations. It is often difficult for many small enterprises to observe and follow these regulations to the fullest extent. The solution lies in smart thinking and timely action, but take care not to ignore business ethics and try to find a way to overcome the situation, by acquiring the right knowledge at the right time.

Financial problems and shortage of capital may pose difficulties for start ups in the initial stage. Finding cash and managing the cash flow is a major issue which entrepreneurs invariably come up against. A fast growing company quickly outgrows its resources while an under-performing company never seems to use it. The majority of start-ups never seem to mange cash effectively and it is here that professional help counts. The company should develop good credit control and achieve a good credit rating through professional financial management, which will be its mainstay in the future.

At this point of time, these drawbacks may seem irksome to the extreme, but good judgement, prudence, building up contacts, and following professional advise can guide you safely through this phase. Never underestimate the efficacy and worth of professional advise at this stage to steer you clear out of the woods.

Lack of a clear plan for growth is another problem small businesses encounter. The financial situation is worsened when money is spent on diverting money on schemes that have nothing to do with the company’s progress. It is therefore important to revise the plan of action according to the economic and business conditions to ensure survival of the business.

Inexperienced leadership, and internal problems, are compounded with the problem of an entrepreneur who wants to do everything himself and does not delegate duties and enlist the support of competent mangers and staff, to help him. In such cases the company comes to a standstill, and can even lead to a failure. Hence the director or the head of the organization should remember his primary role as a leader and lead the team – not do everything himself – and allocate duties to others who will report to him. This way the he can focus on his primary duty of ensuring company growth and development.

There are some glaring errors that first-time entrepreneurs tend to make, which one should take care to avoid at all costs. These include:

Mixing personal and business credit cards
Neglecting the quality of work
Forgetting innovation
Not paying the bills on time
Neglecting investors and external capital
Instead they could do better off if they focus on:

E-commerce
Promoting the inventory systems
Getting expertise on the technical fields in the business
Using the latest technologies
Using the social media for business growth
Interacting with employees
It is clear that the more forethought you give your business, the more likely you are to overcome these major hurdles and succeed.

Entrepreneurial Learning
A good business plan, professional guidance in money matters, concern for employees, and developing a good managerial team would help the budding entrepreneur steer clear of most of the business hurdles discussed.

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