10 challenges entrepreneurs face when starting a new business

10 challenges entrepreneurs face when starting a new business

Business Insurance

Business Insurance

Entrepreneurs face numerous challenges in today’s ultra-competitive business world. Businesses have had to adapt to entirely new marketing channels and decide how to best utilize these technologies while competing in their specialised industry.

It has become more apparent in recent years that no CEO can be an expert in everything. Hence, more and more companies seek advice from qualified professionals.

If you’re just getting into a new business venture, or you’re thinking about becoming an entrepreneur, be prepared for these ten significant hurdles.

1. Uncertainty About The Future

An entrepreneur’s life is not enviable, at least not in the beginning. It’s extremely easy to get discouraged when something goes wrong or when you’re not growing as fast as you’d like. Having a good support system will help with exceptional employees, family and friends who know your goals and support your plight, as well as seeking professional advice from other entrepreneurs who can objectively make suggestions in relation to the successful progression of your business.

2. Financial Management

Experienced entrepreneurs don’t have it easy when it comes to funding a new business, but they do have a few advantages over newcomers. For instance, experienced business owners may have a pool of capital from a business they previously sold or a steady stream of revenue from another company that they can use to fund a new business’s cash flow.

If you are just starting out, you need to start networking to make positive contacts for your business. You also need to think about potential funding options, if and when required.

A company needs a financial professional who is good in areas such as cash flow, profit margins, reducing costs, financing, etc. to ensure the road to success is a smooth one.

3. Decision-Making

Believe it or not, this is probably one of the most stressful challenges on this list. New business adventures force you to make hundreds of decisions a day.

However, if you can work your way past these obstacles, you’ll be well on your way to establishing a successful business. Set yourself key performance indicators to provide you with insights into your business.

4. Regulation and Compliance

As markets and technologies adapt and change, so do the rules and regulations. Depending on your industry, it can make much more sense to bring in a consultant or employ personnel to help rather than trying to understand the complexities of this yourself. You do not want to risk receiving unnecessary fines or worse for non-compliance.

5. Competencies and Recruiting the Right Talent

Finding the right people and developing the right skills and competencies is the key to a sustainable future. Make your work expectations clear for both parties so that you can lay the foundation for a long-term, mutually-rewarding client-boss relationship.

6. New Technology

As technologies often change, it’s vital for companies to innovate or they may get left behind.

7. Managing Data

Keeping data safe and extracting insights from the ever-increasing amounts of data that your company produces needs to be managed effectively. Make sure you leave your data in capable hands.

8. Customer Service

In a world of instant gratification, customers expect instant customer service. Make sure you appoint staff that will paint your company in a positive light.

9. Establishing a Good Reputation and Keeping it

Customers can easily voice any displeasure on the web via social media and the likes. Complaints are more public than ever before. Therefore, it is important for businesses to monitor and maintain their online reputation.

10. Understanding the Correct Insurance Policies Appropriate To Your Business

One of the essential challenges for any new business venture is to purchase the appropriate insurance cover. There are so many options available with many mandatory insurance requirements, this is an area that takes some guidance.

Murray & Spelman Ltd and Murray & Spelman (Kildare) Ltd offer Irish businesses a comprehensive suite of products and services for every type of business sector.

These companies include new start-ups, keen to secure the most cost-effective solutions, through to large corporate firms with complex insurance portfolios requiring specialist risk management expertise.

We are living in an era of constant change. Preparing for the future by investing in the right kind of advice is the best way to meet these challenges head-on.

Request a CallBack today and we will advise you on tailor-made Business Insurance solutions suitable for you & your company’s needs.