1.Many Entrepreneurs try to do everything in a business
Some business owners try to do everything around their business without realizing if one person tries to do sales, administrative work, finance and dealing with customers, it will be impossible to complete all the tasks without complicating things in the business. When you are starting up a business, you have to make sure that you have help to give you support in your business if not you will find it difficult to get the business off the ground. If you think that you are not good at certain tasks may be the accounting side or you don’t have enough knowledge to deal with some of the other tasks, it will be wiser for you to outsource.it to a freelancer or to an outsourcing company. Also if you have family and friends around you to help in your business, you could delegate some of your tasks to them to do it for you. The other alternative is to solve this problem is to find partnerships who have the same knowledge about your business or find someone to work in house on a day to day basis. In any case, these things will have to sorted out as early as possible otherwise your business will suffer in the long run and at the end, you will not achieve your goal.
- Not enough capital
It is not possible to start a business without capital, you have to check your funds that you have in your hands and if you think that you do not have enough money decide on an investor to borrow the money. When you go to borough the money you need to have a business plan I will give the details in my next article about it. Do you realize borrowing money and starting a business could be dangerous unless you are going to be very meticulous with money, and a well-organized accounting structure is needed. Prepare the business plan and decide how much money you will need to start your business and where you can borrow it either from an investor or a bank
When you are running your business, there might be problems with finance, this is not an unusual thing therefore every entrepreneur has to be aware of it. In times like that, you should have prepared yourself to save your business without getting pushed to the ground. Therefore, you must have a savings accounts and make some cash deposits on a monthly basis and keep it for emergency use only. In the event that you become ill and you cannot run your business, you should have prepared an operational manual for someone else or any of your family member to take over and run your business with the help of your manual, and the money in your separate savings account could be used in an emergency situation like this to save your business from going to the ground.
The necessary actions to be taken at the difficult time of your business.
The difficult time involves the cash flow problems, therefore maintenance of cash flow is an essential part of your business by monitoring the business finances. When your cash flow is showing red balances you have to make sure, to get paid fast from your customers if not you will incur heavy bank charges and it will scare you and make you lose confidence in your business. Therefore, it is important to maintain cash flow and take quick action to rectify the situation by approaching your customers to get the monies due to you. This is the part in your business that you cannot neglect and waste time over keeping the cash flow in order.
You can avoid such a situation by following two methods, one is not to deal with customers who cannot afford to pay you, it will be wiser that you do some credit checks before selling the goods on credit.
Keep your credit agreements up-to-date all the time.
Don’t allow your customers to make late payments, send them reminders in advance.
How do the successful businesses avoid such difficult times?
These businesses maintain a meticulous cash flow system, checking and balancing on a daily basis and also take enough care when dealing with cash by qualified personnel, and they use the cash flow management skills. You are a small new business and if your desire is to move forward, you have to keep your payments to bills, salaries and purchases on time so that cash flow system have to be well under control. When you keep your accounting under control your customers are bound to make the payments on time, this will help you to run your business effectively.
Achieve your goal in your business
“Life of a Fruitful Entrepreneur”