Entrepreneurship holds many challenges. Operating a business is about navigating uncertainties and capitalizing on opportunities. The tricky part is, both of those categories are often difficult to identify and even more complicated to negotiate. In my life as an entrepreneur, I have been part of multiple industries, across numerous markets and in all sorts of macroeconomic conditions. Over this reasonably eventful career, I have come to some broad conclusions that I believe can be of value to others. While each individual business faces somewhat unique conditions and tests, there are some common elements that, I believe, every entrepreneur must be prepared to address.
Approaching a topic as broad as the challenges that you are likely to face in running your business is a challenge in itself! Chances are, whatever specific aspect I try to share an insight into, the real world issues you may come across will be different. Nevertheless, there are a few important big-picture pointers that I believe can be of use to anyone who takes them on board. Lastly, having once been a young and eager, but inexperienced, entrepreneur myself, I understand how valuable any advice one receives from an experienced person can be.
Your top 3 challenges
The real world is a complex and multi-faceted place. I can never claim to anticipate the specific ins and outs of the challenges that you might be confronted by. This is why I intend to take a big picture approach in identifying what success comes down to and how to make sure that you do everything possible to ensure it. For this purpose I have distilled my advice down to three fundamental facets that, I believe, are a challenge for every single business, and the best approach to respond to them.
- Best Human Resources you can gather: I very strongly believe that your team is your greatest asset. Capable individuals multiply any positive into a gamechanging advantage and negate, or reduce, the impact of a negative influence. Quite frankly, you team plays the most crucial role possible, in your business operations. I would advise any entrepreneur to put in a great deal of effort into finding the right candidates for your business. Think outside the box, even if you are only starting out, consider all the options you have in order to attract the right individuals to becoming part of your business. Certain aspects of your business respond well to enthusiasm and learning on the job, leverage this as a young business, especially if the remuneration you are offering is limited compared to some of your more established competition. For roles that need more experience, be prepared to pay the candidates the amount that they deserve. Always remember, experience and a well-rounded skillset are a priceless asset for any enterprise, respect the value that they bring to your operations. Finally, if someone possesses a skillset that can make or break your business, consider giving them a financial stake as an incentive. As entrepreneurs we can sometimes get too insecure about our idea and hold our cards too close to our chest, but remember that execution is just as critical as inspiration, if not more. Value employees that completely alter your chances of success, they will make the difference when you look back in hindsight.
- Brand awareness and Customer Loyalty: Creating a customer base that prefers you, and that you retain in the long term, is the single greatest piece of the puzzle in running a business – bar none. Your customers are your patrons, supporters and, ideally, your greatest promoter. Treat this relationship with the respect it deserves. Our connected and interdependent world gives you several options to promote your business. From gadgets, to platforms to media, the possibilities have been empowered tremendously by the sheer variety of options available. The right messaging is crucial to your success. Always remember that what you are trying to create is a relationship with your customers. However, this does not mean that by simply providing polite and responsive service you will be able to keep your clients! We live in an age where customers are more than happy to go beyond borders and across language barriers, as long as they are getting bang for their buck. Ensure that what you bring to the table is a combination of the best product at the best price, backed by the best service. There simply is no room to fail in this. Fortunately, there are several strategies and technologies available that you can customize to your needs, in order to generate a coherent and consistently great standard of service across all platforms and through the entire client journey. Nothing makes your business more viable than the relationship you are able to create in all your business interactions. Create a culture that values that approach without exception and make sure that you provide your employees adequate technology and systems to be able to deliver these outcomes.
- Management of Finances and Critical Resources: There is a reason why business people speak in terms of a “bottomline”! Making a sizable profit can amount to nothing if the ongoing capex and liabilities are too great. Generating a healthy cash flow, on an ongoing basis, is one of the most important things a business can do to achieve success. In addition, ensure that you are well capitalized and have set aside cash reserves to meet any emergency obligations. This is sometimes easier said than done, but believe me, the longer you are vulnerable to a cash crunch, the exponentially more likely the probability of one occurring. Reality has a way of aligning with the conditions you create. Cash flow issues are even more critical in times of recession or when lending practices are highly regulated or conservative. If you are lucky enough to have only operated in a bull market, thank your lucky stars, but also prepare well for a possible downturn. These things tend to happen suddenly and any preparation you might have put into it can make the difference between success and failure. Ensure that you payment and collection cycles are in sync with the real world challenges you are facing. I can’t stress this enough. In short, rationalize your operations to be aligned with your regular financial cycles and create a buffer for the inevitable rainy day.
Conclusion
Operating a business is usually a well-defined endeavor. Most industries have predictable needs and there are usually fairly well anticipated means to deliver them – at least broadly speaking. So what separates the successful from those who fail? I believe it is preparation! Entrepreneurs are often looking for the magic bullet that will ensure their early and robust success. The fact of the matter is that in most instances there is no secret to success. It is only about making the right choices and doing the right things.
Having said that, I also believe that human beings can only put in their best prepared and most well intentioned effort, but many of the reasons for an outcome continue to be elusive and out of our control as well. In my personal journey as an entrepreneur, my faith and belief in God has been a powerful tool to overcome challenges. While a certain element of luck or destiny is inevitable, I believe divine guidance speaks to us through our intuition and convictions. My faith has helped me profoundly, to keep me completely dedicated in my efforts but also detached from being too invested in personal gain.
