Question

Critically analyze the Problems faced by the young entrepreneurs and strategies to overcome those problems.

Answer 1

1. Lack of capital

Almost all new ventures require seed capital, money that is available to see them through those first rocky months or even years before they turn a profit. Some types of businesses need more money than others. Almost all need money for marketing.

Older people who start their own ventures usually need less financing to do so than younger entrepreneurs. The reason is that their experience in the field, knowledge of how the business world works, and connections within the business world, some built up over many years, provide a great boost to their start-up businesses. As a result, they generally are able to turn a profit sooner and need to rely on financing for a shorter time.

Most young entrepreneurs, however, do not have those benefits available to them. That means that they need money to sustain them while they gather that experience. In addition, younger people have not had the time to accumulate savings in the way older people often have, and are likely to owe more in loans and on credit cards than their senior counterparts.

The lack of capital means that they have to struggle to survive while waiting for the checks to come in. This can be extremely stressful.

How to overcome it-

To avoid this situation, young entrepreneurs should write a detailed business plan that will give them a good idea of how much money they will need to survive before becoming profitable. Armed with that total, they should seek to find it. Friends and family and even a local bank or credit union might be able to assist them.

2. Hiring the Right Employees

After you have decided to start your own venture, a team is required to accomplish the business objectives but it is not an easy task to hire the dream team. Getting people who believe in your venture or business idea as you do, is always difficult and one of the most crucial tasks. The biggest challenge for a start-up is to hire the right team, share a common vision about the organization and work towards making your business dreams a reality.

How to overcome it-

Arrange a walking interview once the pool of prospects is planned. You can save a lot of time by pre-qualifying the candidate through ultra-specific considerations. Take time to seek real references and ask them clearly about their long-term sustainability. Provide them rewards what they are seeking in the form of security and freedom from micromanagement. It is not only about bending towards your employees but about the clarification of expectations between both the parties to have a long-term foundation and mutually rewarding relationship.

3. Decisions

Whereas as an employee you generally did what you were told, now you are the one calling the shots. Doing so involves making a lot of decisions. Even without employees, you are going to be called upon to make decisions all day, from smaller ones to major judgments that could change the direction and future of your company.

Among the most important decisions are those that involve creativity and ideas. If an aspect of your company is not working as it should, you will need to make a decision to discontinue it or amend it. You will need to decide whether the company should embark on a whole new path in search of greater profits — or, if it does not work, potentially great losses.

How to overcome it-

It’s stressful and will cause you to have self-doubt. Here’s where your entrepreneurial skills come into play. You will need to believe in yourself, be confident that you do have the ability to make the right decisions, and never doubt your good judgment.

4. Criticism and self-doubt

As a young entrepreneur, you will find that not everyone will take you seriously. They will tell you that you are too young to build a successful business. They will be quick to tell you just what they think you are doing wrong. At times, the criticism and the self-doubt it fosters might get to you. As your business struggles to get off the ground, you could start to doubt yourself.

How to overcome it-

You might wonder whether you should have started your business after all.
At times like these, tell yourself that determination and resolve are what distinguish the successful entrepreneurs from the rest. Do not give up. Believe in yourself and you will succeed.

5. Time Management

It is one of the biggest problems faced by entrepreneurs as they wear many hats (almost all hats). You need lot more of time accomplish your business objectives.

How to overcome it-

Like money, time also does not grow on trees and you have to act very smartly while spending your time. Create your goal lists (annual, monthly, weekly, daily) and track these goals with your life goals. Master the skills of delegation for the tasks that need not be completed by you. Last but not least, ask yourself if you spending your time wisely?

6. What to sell

It is difficult to understand how to pick a niche as the competition is growing in all industries. Your business success or failure depends on the choice of your product/service.

How to overcome it-

If you are not good at identifying niches, delegate the task to someone who has their core strength in this area. Don’t hire an expensive researcher and you can recruit a freelancer who has experience in your field. Let them conduct extensive market research, create a report and estimate potential profitability after complete SWOT analysis.