A great business is not just about a great business idea. Before you set out on a course to success, you will have to tread a path full of obstacles. And only when you remove all those obstacles tactfully can you imagine being successful.
No matter the nature of the business, there are a few obstacles that business owners come across while setting it up. With a few very important tips discussed below, you can get through them without any major setbacks. Read on.
Choose the Right Business Structure – The first step is choosing the structure of your business correctly since it comes with several legal implications. In India, there are three main structures:
- Sole Proprietorship: It means that the business is owned by an individual. Businesses under sole proprietorship do not have a formal structure and entrepreneurs can retain full ownership of their businesses.
- Partnership: It is a structure opted by profit-based businesses established by a group of professionals. The partnership can be general or limited (LLP).
- Company: Businesses in this structure are registered as a corporate body under the Companies Act. The two types are One Person Company and Public Company.
Analyse your liabilities and potential tax rates in addition to other business set-up dynamics and choose the correct business structure. You can also seek professional assistance to be sure of your decision.
Find the Right Funding Option – The biggest challenge for small business owners is to keep the cash flowing to be able to meet both short-term and long-term obligations of the business. Hence, it is very important to sort out funding options and use them strategically.
63% of business owners use their personal funds to get their business running. Similarly, you can dig into your personal funds initially to create a financial runway. And for immediate funding needs thereafter, you can opt for a credit line that you can fall back on. There are many financial firms that offer personal loans for businessmen on instant approval. You can use that amount for your business operations and liabilities and pay back in instalments over a longer payment period.
Manage Time Effectively – As an entrepreneur, the biggest investment that you can make is that of time. But managing time effectively may be challenging since you may always feel that there’s more work and less time. So, leave everything at hand and create a strategy to manage your time effectively. Here are a few things you can do:
- Gauge responsibilities and identify the areas that absolutely require your attention. Do not invest time in activities where your efforts can be replaced.
- Create short-term and long-term plans and schedule meetings and appointments accordingly.
- Keep track of your availability and the number of hours worked per day.
- Treat yourself as a resource. Don’t exert too much pressure on yourself and take breaks whenever needed to avoid burnout.
Don’t Do it All By Yourself – Owners of small businesses tend to take up as much work as possible since they are prepared to build everything from the ground up. But a smart businessperson knows the power of effective delegation. So, do not overwork yourself with tasks that do not need your direct attention i.e. tasks that generate revenue. Delegate those tasks to your team members, or better, hire someone who can do that for you. You also do not need to be directly involved with operations; instead, introduce a system that helps you get timely updates of the work.
You must focus on the tasks that make the bigger picture clearer. Do not lose sight of your vision and stay on the right track to your business’s success.
Find a Mentor – Whether you have a background in business or not, it is important to have a mentor who can guide you during tough times. A mentor will already be familiar with the obstacles you will face in the future, and hence will be able to help avoid the potential mistakes. Make sure that the mentor you choose has relevant experience and industry knowledge especially in the areas where you certainly know that you are going to require help.
Always stay on a lookout for new ways to solve traditional problems and you will certainly achieve success. Moreover, keep these tips in mind so that you can kick the hurdles aside and move forward with ease.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at firstname.lastname@example.org.