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Black Connect
by on July 1, 2019
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Starting a business is always very exciting. There is a sense of fulfillment and freedom that comes with being your own boss and bringing your ideas to life that every person should have the opportunity to experience. Although, along with great reward, entrepreneurship comes with considerable risk. The risks can be costly and take a mental, emotional, and financial toll on the brave souls who dare to blaze their own trail.

The average time it takes an entrepreneur to start earning profit from a new business is relative. New businesses measure their profitability in different ways. But on the average, it will take about two to three years before an entrepreneur starts earning profit from a new business.

However, according to Forbes, 8 out of every 10 entrepreneurs who start business quit within the first 18 months. This statistic indicates that many businesses fail before they get off the ground. Why are entrepreneurs quitting so soon? Here are common challenges that entrepreneurs face.

Unexpected Challenges You May Face As an Entrepreneur.

 

 #1 C.R.E.A.M.

Cash is still king. Money is the lifeblood of every business, and new ventures absorb money like a dry sponge. There will be expenses that, only due to inexperience, you had not considered or budgeted for. Also, it is not uncommon for new businesses to have periods of slow sales. Be conservative when preparing your budget. It is better to overestimate your expenses and understate your revenue than the other way around. Also, add an additional amount to your expense budget to account for unforeseen and miscellaneous expenses.

As a business owner, you must look for ways to meet the needs of the business while also conserving costs. You can use platforms like Black Connect, which provides networking and a host of tools and resources for entrepreneurs, business owners, and professionals. You can join Black Connect for free and utilize its e-commerce features to sell products with no monthly fees. You and your business could also be featured in Black Connect’s newsletter or entrepreneur blog series, which can provide you with greater exposure.

Hire interns to fill less crucial roles. You can post jobs and internships for free on Black Connect.

Create a crowdfunding campaign to raise money for your business venture.

Leverage all of the free and low-cost tools and resources available to you to help cut costs. Once you start earning a profit, you can re-invest retained earnings back into the business to plan for growth. With positive cash flow and positive financial statements, you can also attract investors and partners, and qualify for traditional financing options.

#2 Shot Calling

You may think that decision making is easy. It isn’t. Everybody wants to be a shot caller until they feel the weight of making that one decision that can make or break their business. Businesses can fail because of one poor choice or because of the cumulative effect of many poor decisions. Bad decisions are made, in part, because most entrepreneurs start a business with a focus on their talent, skill, or product. Many entrepreneurs lack business understanding and are not prepared to make decisions on matters concerning the law, accounting, sales, marketing, operations, logistics, and a host of other business matters.

There are several ways to overcome lack of knowledge:

a) Bring on a partner with business experience who is capable of handling the business affairs, so that you can focus on your product or service. The combination of skills, resources, and perspectives can be beneficial to your business goals. To avoid conflict and help ensure a lasting and rewarding partnership, be sure to have a partnership agreement prepared by an attorney that outlines each partner’s role, responsibilities, compensation, and other relevant legal and business terms. If you are looking for partners, post your business opportunity on Black Connect.

b) Hire a business consultant or freelance professionals who work with entrepreneurs and understand the needs of start-ups.

c) Get advice from other business owners and professionals by posting questions in the Black Connect Business Development Forum.

#3 Marketing Strategy

An effective marketing strategy is one of the foundational components of a business plan. Your marketing strategy is your plan of action to reach your target demographic and turn them into customers.

Unfortunately, many entrepreneurs choose marketing techniques without developing a marketing strategy. Social media marketing is a digital marketing technique. A successful social media marketing campaign requires a plan. Developing a social media marketing strategy includes defining your target audience, setting measurable goals, and choosing messages and images that resonate with your audience and builds awareness of your products or service. Without a marketing strategy, entrepreneurs may spend a fortune on marketing activities that do not yield desired results.

If you are not a marketing professional, consider outsourcing a professional to handle your marketing needs. Companies like Legacy Social Media Management and Just Write Legal, provide social media, press release writing, content writing and copywriting services to small businesses. Make the best possible first impression of your business by consulting with business and marketing professionals before you launch.

#4 A Master Plan

A business plan is like a compass that gives your business direction. Creating a business plan requires you to analyze the essential aspects of your business and gives you a realistic and holistic view of your business. Your business plan will help you prioritize goals and objectives and minimize pitfalls and unforeseen challenges. Black Connect has a business plan guide that all members can download for free.

#5 Live Your Best Life - Positive Mindset & Realistic Expectations

Be proud of your accomplishments, no matter how small. Celebrate each step of progress and view setbacks and challenges as opportunities to learn and grow. There is power in positive thinking and healthy perspectives. Learn how to compartmentalize and fully immerse yourself in activities that you enjoy outside of your business. Spend time with family and friends and incorporate exercise, social and recreational activities, and hobbies that you enjoy into your schedule.

Success in business isn’t miraculous. Success happens with consistency. Don’t set yourself up for disappointment by thinking you will achieve overnight success. Your new business venture will take time, energy, and resources. Entrepreneurship is a learning process. Allow your business to grow at its own pace and connect with people who are on a similar path or who support entrepreneurs and black businesses.

Final Words

Slow and steady wins the race. Entrepreneurship is a marathon, not a sprint. To go the distance, you must stay flexible, be mentally prepared, and create your own definition of success. Setting realistic goals and connecting with other business owners for advice and encouragement will help you meet the challenges you will face on your entrepreneurial journey.

Posted in: Business