• Unstoppable India

Challenges Faced by Entrepreneurs While Starting Their Own Startup

Local businesses have been sprouting all throughout India as the Indian government has launched different initiatives to boost small-scale enterprises, with many startups making big effects in the last few years. But it isn't easy; entrepreneurs encounter a variety of challenges.

While Paytm and Flipkart are examples of what a business may achieve in a few short years, practically all entrepreneurs encounter similar issues when they first start out.


1) Management of finances and cash flow

Obtaining funding for your business is one of the most important difficulties that all businesses encounter and must address in order to continue.

While you may have some money set aside to start a business, they don't last long, and you can't count on the next sales check to pay the bills and take care of the next step in the process.

Small businesses need a consistent flow of revenue to survive, and you should always keep extra cash on hand to cover rainy days and in-between days. Many entrepreneurs struggle to make ends meet and, at times, do not pay themselves so that their invoices may be paid on time.

What you can do is better organize your finances so that there are no delays in invoicing and that you have ample time between receiving funds, clearing the invoice, and paying your employees' salaries (including your own). To do so, make sure you have a well-thought-out business strategy in place, complete with finances set aside to weather the worst-case scenario. Remember that because you are beginning, you will have limited financial resources and thus less room for error.


2) Employee recruitment and team building

We've all had interviews at some point in our lives, and for many of us, it's been one of the most stressful experiences of our life. While we've all been in the above circumstance at some point, very few of us have conducted interviews, and it's just as difficult, if not more difficult, because the bulk of you haven't done it before and have no idea how to go about it.

The fact that you're doing it as a first-time entrepreneur adds to the stress, as you want to find the ideal applicant who not only fits your budget but is also skilled at the work they'll be doing.


Picking the perfect combination team for a company is similarly stressful because you have no idea how the team will operate together, even if the candidates are qualified on paper and efficient working alone.

As a result, you should be selective and look beyond resumes and job criteria. When posting job criteria, be precise about what you're seeking, as well as the budget and benefits you're asking for. Make sure to specify what qualifications candidates must possess, as well as the job responsibilities and hours and days they will be working. This will save you a lot of time because people who apply will be aware of the budget and responsibilities.


3) Dealing with self-doubt and the unknown

Every entrepreneur, especially those who are just starting out, has doubts about their own abilities and frequently wonders if their business will succeed, be lucrative, and persist over time. They frequently question whether their product will function and whether buyers will accept it.

You can't avoid these questions, and none of them have a strong, accurate answer until you're in that situation.

There are numerous unknown variables, and many of your long-term plans will be subject to change as new developments occur. One of the most difficult aspects of being a new entrepreneur is dealing with the volatility, and all you can do is stay calm and deal with the issues as they arise.


4) Dealing with self-doubt and the unknown

Every entrepreneur, especially those who are just starting out, has doubts about their own abilities and frequently wonders if their business will succeed, be lucrative, and persist over time. They frequently question whether their product will function and whether buyers will accept it.

You can't avoid these questions, and none of them have a strong, accurate answer until you're in that situation.

There are numerous unknown variables, and many of your long-term plans will be subject to change as new developments occur. One of the most difficult aspects of being a new entrepreneur is dealing with the volatility, and all you can do is stay calm and deal with the issues as they arise.


5) Making decisions

Making decisions is one of the most difficult and frustrating tasks that entrepreneurs confront.

New entrepreneurs have a tougher difficulty making judgments because they typically equate even little mistakes with the company's and budget's impact. Self-doubt also causes individuals to question whether or not the decisions they've already made were the appropriate ones.


Entrepreneurial Challenges

It takes time for individuals to learn to make hundreds of judgments a day, big and small, without second-guessing themselves and without succumbing to decision fatigue.

While it will take time and practice to get to that point, individuals can begin by following the 5 steps of the decision-making process when making critical judgments.

These include determining their aim, calculating their options, weighing the implications, making a decision, and evaluating it before giving it a thumbs up. They can also delegate lesser decisions to persons they trust who are most suited to that department and would know what works best for you.


6) Dealing with Criticism

One of the most persistent issues that entrepreneurs encounter is criticism. It could be about their business ideas, small business decision-making mistakes, or even launching a firm in the first place. Even great businessmen like Ratan Tata and NR Narayana Murthy have experienced and continue to face criticism.

You may encounter it more as a new entrepreneur, and you will be continuously cautioned about the different ways your business can collapse. Because they are jealous of and threatened by you, these critics may become personal. As a successful businessperson, you must learn to confront them head-on and sift the wheat from the chaff.


Essentially, you must examine legitimate criticism, assess it, and correct it so that it does not occur again. Set aside harmful comments and "tips" and focus on the true guidance that can help you grow your business.


7) Obtaining clients

Any firm that is just getting started, especially one with a limited marketing budget, will find it difficult to attract clients. This is a challenge that every entrepreneur faces, and the fact that customers want to remain with well-known brands makes it difficult for them to market their items.

New companies, on the other hand, have a significant pricing edge over established brands, as their prices are far lower.


They will not only be able to attract new customers but also keep existing customers who will become loyal to them over time if they provide a high-quality product at a significantly lower price than their competitors.


8) Effective time management

When you're first starting out in business, one of the most difficult challenges you'll face is time management.

As a beginner, an entrepreneur must assume a variety of roles and wear as many hats as possible. He or she is continually racing from pillar to post to take care of things since he or she has a lot to do in a short amount of time.

While no one can control the amount of time and money they have, they can establish a rigid timetable that assigns time and money to each assignment.

As a newbie, you cannot afford to waste time because it will only cost you more in the long run, so you must budget each minute carefully. You'll need to make a goal list that's broken down into weekly, monthly, and annual goals for this.

While no one can control the amount of time and money they have, they can establish a rigid timetable that assigns time and money to each assignment. As a newbie, you cannot afford to waste time because it will only cost you more in the long run, so you must budget each minute carefully.


You'll need to make a goal list that's broken down into weekly, monthly, and annual goals for this. Make a schedule for your week and break it down into specific tasks for each day. When you concentrate on accomplishing your daily objectives, you will naturally achieve your weekly objectives and, as a result, your annual objectives. This will also assist you in keeping track of things and determining where you stand in relation to your business objectives.