Welcome once again. I do hope that you enjoyed reading the first part
of this article, didn't you? In this second part of our article on
overcoming common entrepreneurial problems, we shall look at issues
related to money and personalities. An entrepreneur who is wise enough
to adequately tackle and overcome these setbacks stands a higher chance
of developing a successful enterprise. Let's proceed.
Money related problems
are diverse and require multiple approaches to handle. To address the
challenge of under-capitalization, it is advisable for you to document a
comprehensive business plan, which can guide you regarding the
appropriate capital required. You then work towards raising sufficient
capital. You can have alternative versions of cash flow plans with the
worst case scenario as the bottom line. Of course these alternative
plans are for your own consumption but the business plan will have only
one cash flow projection. Consider other forms of financing your
enterprise such as guerrilla financing, grants, equipment leasing, angel
investors etc in order to raise sufficient capital. Many financial
institutions are reluctant to lend to startups but you can search for
venture capital firms since these are more willing to finance startups.
In
addition to the adequate capitalization, you need financial discipline.
Obtain professional advice on how to document your transactions,
maintain books of accounts and generally manage your finances. Have a
financial plan and stick to it. Give time for your enterprise to grow
before you start making drawings. Even when you commence drawings,
consult a professional to advice you on the realistic level of drawings
you can make, without distorting cash flow. Maintain separate bank
accounts for your enterprise from your personal accounts, so that you
can properly monitor your business. Be financially intelligent by
acquiring required knowledge through training, mentoring, coaching,
networking etc. Do business with integrity and avoid quick-fix
approaches to making quick money. Don't be too much money-oriented in
your enterprise. Exercise patience and understand that you need to
invest some good years into your enterprise before you can start
enjoying the fruits of your investments.
Learn various aspects of
business finance. There are some basics that you need to understand as
an entrepreneur. For example, you need to know how to price your goods
and services. You need to properly understand the costs, fixed and
variable, of operating your enterprise. You need to have an idea of
common financial statements such as the income or profit and loss
statement, balance sheet or statement of financial position and also
cash flow statement. Basic ratio analysis is also part of financial
intelligence since it deals with an insight into the figures contained
in your financial statements. Without an insight you may go astray and
you won't even know you are straying.
Personality problems,
as mentioned earlier, largely require attitude and personality changes.
Negative thinking for example requires you to be aware of what triggers
these and try to offload such emotions. You can also use positive
affirmations, visualization and positive self-talk. Planning and
preparation in your enterprise also tend to eliminate fears arising from
business uncertainties. Learn how to tackle indecision and
procrastination. Use time management tools and prioritization. You can
gradually change your habits to tackle this. Stress management
techniques such as exercising and deep breathing approaches can be
useful. At one point or the other entrepreneurs feel stressed as they
work hard to develop and grow their enterprises.
Additionally, to
be able to avoid bad advice, check out a number of business consultants
in terms of their expertise and quality of service before you sign on
any to provide for you services in your enterprise. Networking can also
be useful because your fellow entrepreneurs are able to advice you on
good consultants. A focused entrepreneur cannot be hopeless. He cannot
remain in a comfort zone. Where you have serious personality problems
you cannot manage because you can't change, let other people play your
role to ensure smooth operation and growth of the enterprise.
Reference:
Clayton_WL_Mwaka
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