The challenges entrepreneurs face can vary widely. It depends on what business they are going to run and how much resources they have. Identifying and coming up with a viable business idea is an entrepreneur’s first challenge. Other challenges could be related to how they choose the right location, raise capital, manage operations and business finances.
In general, challenges also vary over the life span of a business. The challenges faced when starting a business can be different when growing a business. And, this article will focus on the challenges entrepreneurs face when starting a new small business.
Identify viable business opportunities
Screening and selecting viable business ideas is an important part before starting a business. It can determine future success.
Entrepreneurs often find various business ideas from their daily problems. There may be many available. However, not all of them are worth running.
For example, entrepreneurs find business ideas from their hobbies, skills or personal experiences. Another source is from previous work experience. Small-budget research and attending franchise fairs can also be potential sources for business ideas. In fact, some entrepreneurs may come across the idea by chance.
Although there are many business ideas and market opportunities, not all …
Building a competitive strategy is about how companies outperform their competitors in generating profits by satisfying the same consumer needs and wants.
There are many businesses around us. Some target the same market. They compete directly in satisfying consumer needs and wants. And, their products replace each other. So, when consumers do not like the product of a company, they will switch to a competitor’s product.
Now, let’s say, you are running a business.
Being successful in the market requires an effective competitive strategy to win the competition. When successful, your company generates above-average profitability by gaining a competitive advantage.
However, due to dynamic competition and market demand, competitive advantage may last only temporary. Competitors may develop superior competitive strategies and eventually outperform your company.
For this reason, your company should adapt the strategy. Thus, it remains relevant and effective in dealing with the changing business environment. And, if your company is able to maintain a superior position over time, that is what we call sustainable competitive advantage.
How does your business successfully compete and gain a competitive advantage? Michael Porter provides a basic framework, known as generic strategy. It tells us how companies compete, in what dimensions.
Then, your …
In this new normal era, many people are starting new businesses to increase their income. There are those who trade in food, beverages, clothing, cosmetics to medical equipment or personal protection such as masks and hand sanitizers.
Of course, with this pandemic, we are not allowed to go out of the house if it is not really important. For this reason, many traders choose to sell their goods through online sites, so that their goods can be sold in the market.
Trading in the online world, definitely requires advertising, so that products are better known to the public. Advertising can also be on television or radio. However, when placing product advertisements, the elements of advertising must be considered, so that buyers are interested in the products being sold.
Let’s look at the elements of advertising that must be known, so that the merchandise is in demand and known by the public.
The first element when you want to advertise a product, Sahabat Fimela must determine the interest or target buyer, so that buying interest arises to buy the product, which is offered through the advertisement.
In making a promotion or advertisement, you must pay attention to interesting …