Building up your own business is not as easy as it seems from the outsider’s point of view. It requires a lot of time, effort and money from the entrepreneur along with a “Never Give Up” attitude. If you think you have got a great business idea and you have enough funds or investors to get started with your business then to you must have a look at the following challenges that would definitely be faced by your startup.
• Finding a Target Customer Base:
Even if you are offering a product or service that is probably liked by most people you still need to have a specified set of people you would target initially. You can specify your initial target customer base on the basis of locality, gender or even their ability to pay. You should not try to up-sell your product to anyone and everyone as it will make you look a little desperate which is surely a negative for your brand identity.
• Retaining Customers:
You should always remember that finding a customer and retaining him are two different things. Mostly people would give you the opportunity to sell you a product or service as they would have some curiosity and a willingness to try on new things. But after the first purchase they would start comparing your product or service with the competitors and may not come back to you. So in such situations you should be ready to offer benefits like loyalty points and discounts to make the customers stick to your brand.
• Dealing with Uncertainties:
Every entrepreneur has to deal with some uncertainties for the initial years of his or her business as there are many things that can’t be predicted. If you are thinking of starting up your own venture then you must not panic and should plan extensively to deal with uncertainties. For example: If you are not sure about the number of products that would be sold by you on a special occasion like Christmas then you must be cautious and keep some extra goods in stock so that your customers don’t feel disappointed.
• Managing Different Aspects of a Business:
If you just started with your business after getting a business idea and funding, then you have missed a crucial stage as an entrepreneur. This stage includes learning about various aspects of business management. You must brush up your knowledge on legal aspects of starting a business along with knowledge on tax regulations of your city so that you don’t end up unknowingly breaking a law. Remember nothing is worse for a startup’s reputation than to be caught up in a legal tangle.
• Handling Disasters:
Most of the entrepreneurs perceive that the day to day operations of their business would always run smoothly and they will never deal with any major problem because they have meticulously planned everything. If you also believe in this perception then you may be wrong. Every business has to deal with contingency situations like lack of or delay in the supply of raw materials, irate customers, key people leaving the venture when there is a financial constraint in the business and so on. In most cases, these problems can’t be predicted.
The solution in such scenarios should be that the entrepreneur must keep a cool attitude and a calm mind so that he can think of other viable options. Offering discounts to irate customers can be one of the many solutions that will not only help you to retain an irate customer but would also assist you in keeping the customers from badmouthing your business which can be a big disaster for a startup