ENTREPRENEURS AND ENTREPRENEURSHIP
You may have heard the kid in your neighborhood saying when he grows up he wants to be an ‘Entrepreneur’. The term has gained much popularity lately that even the children who wanted to be doctors or engineers are now wishing to become entrepreneurs. The term ‘entrepreneur’ may be well understood only when the phenomenon of entrepreneurship is grasped. The capability to run a business venture using the soft skills to build, categorize and take the required decisions for a smooth self-established business venture is called Entrepreneurship. The person who performs all the aforementioned is called an ‘Entrepreneur’. However, being an entrepreneur is not just a bed of roses. Despite years of experience even the most skilled entrepreneurs have to face a host of different challenges. The challenges are never of the same nature. In order to keep the business smooth and profitable, all such challenges faced by entrepreneurs need to be tackled with a plan and strategy. No matter how accomplished an entrepreneur is, he or she needs a mentor. Here is a list of some of the many challenges faced by entrepreneurs.
REGULATING THE CASH FLOW:
One of the biggest challenges faced by entrepreneur is the management of cash and finances. Entrepreneurs have to get the bills paid, clear the bills of inventory. When the invoices are left unpaid it creates a major problem for the entrepreneurs.
ADMINISTRATION OF TIME:
If you’re an entrepreneur or know someone in your circle, you might realize the importance of time. The multitasking work nature of entrepreneurs makes them run short of time. This creates a problem for entrepreneurs.
GETTING EMPLOYEES ONBOARD:
Since the entrepreneurs are already running short on time, they dislike all such activities that consume a major chunk of their quota of time. Hiring employees is a systematic, and a lengthy process. In order to get the employees on board, they need to be scrutinized. This is usually done by taking a preliminary test and an interview. A one to one conversation of the interviewer with the prospective candidate is a crucial stage before the final hiring. But this also requires a great deal if time. In order to hire the right skilled employee, all candidates need to be assessed. Their salaries are discussed with them. Negotiations take place. Job description takes place. Being an entrepreneur it is utterly important to be satisfied. This is done by cutting down the prices and expenses wherever possible. On the other hand the right employees need to be added into the team to get the work done efficiently. There is a fine line between balancing the budget and hiring the right human resource. None of which can be left out completely.
PICKING THE RIGHT PRODUCT OR SERVICE:
The life of any entrepreneur’s venture is the product or service being sold. If the product or solution that the entrepreneur plans to sell is not competitive enough or is not the need or necessity of the region being served in, it is very likely to fail. The sole triumph and collapse of the venture is entirely dependent upon the service or product. Therefore, the decision of product should be worked upon and analyzed before pitching it in the market.
LACK OF CONFIDENCE AND UNCERTAINTY:
At the beginner level, every professional is hesitant of their decisions; Entrepreneur is no exception. When a venture is started, several doubts and uncertain thoughts revolve around in the mind of an entrepreneur. Profitability of the business, product and service acceptability, right team, time scale prediction of the business; these are some of the many fears and suspicions that haunt an entrepreneur and create problems. One may never know the right answer. There is no perfect book formula to become a successful entrepreneur. This can only be learnt with experience. The future decisions of an entrepreneur depend entirely upon the decisions that are made presently. To overcome these fears is a major challenge for an entrepreneur.
Decision making is one of the most problematic tasks for entrepreneurs. At the initial stages entrepreneurs face a tough time to take the required action, fearing the consequences of it on their venture. This ultimately leads them to either take a wrong decision, or no decision at all; both lethal for the venture if not done in a timely manner. But this skill is entirely dependent upon experience and is polished as time passes, and the entrepreneur gets groomed by it.
In order to take a calculated decision that has less chances of failure, a five steps plan can be followed;
- Goal Identification
- Considering multiple options,
- Being aware of the surroundings and impacts of decisions that will be made
- Making the actual decision
- Analyzing before finalizing.
Criticism is an element that can shake the very core of the entrepreneur’s business. Every entrepreneur no matter how big or small has faced criticism. This is one the major challenges faced by entrepreneurs. It is usually focused upon whether the product or service they sell is rational. Many entrepreneurs even get personally picked upon due to competitive edge and jealousy by the competitors. The right advice and the wrong talks should be filtered to keep the negativity away from the business and the minds of those involved.
The basic measure of performance of an entrepreneur may be gauged by ‘Entrepreneurial Satisfaction’. This solely depends on the decisions that are taken or ought to be taken by the entrepreneur with regards to investment opportunities, whether it is a necessity or an option, where to curtail the cost, where to double the outlay. All this and more accounts for Entrepreneurial life satisfaction. As the life of an entrepreneur deeply revolves around his or her venture.
EVERY ENTREPRENEUR NEEDS A MENTOR. BUT WHY?
A new outlook is very important in entrepreneurship. This is where Mentors come into play. The challenges and problems that are faced by entrepreneurs are several, however, with the right mentorship, and guidance such challenges can be thwarted. And only when the problems are taken care of, an entrepreneur can feel complete satisfaction.