7 Biggest Challenges Faced by Entrepreneurs and Solutions

As an entrepreneur, you should know that running a Startup is not a 100 Mtr Sprint, but it’s a marathon. It’s an ongoing journey full of challenges. In This Blog, We will talk about the Biggest challenges faced by entrepreneurs and Solutions.

Your Startup journey will be full of roller coaster rides, so you should be mentally prepared for the challenges an entrepreneur faces.

When you are clear with your purpose in life, you are unstoppable. This article will talk about a few of the top problems faced by startups during their entrepreneurship journey.

These are prevalent challenges, and almost all entrepreneurs face them. But unfortunately, some of them give up, and some find out how to overcome them. So be like the second one.

However, I have given some solutions to overcome these challenges in this Blog, but if you do the things with good planning and move accordingly, then it is possible that you do not face these challenges.

Also Read: What is Startup and Features & Stages of a Startup

So Here are the 7 Biggest Challenges an Entrepreneur Faces-

1. Cash/Working Capital
2. Generating Quality Leads
3. Converting Leads into the Paying Customers
4. Retaining the Customers
5. Providing the Competitive Price
6. Hiring the Right People
7. Retaining the People

1. Cash/Working Capital

Let’s get straight into this- You need cash to run your Startup, which is one of the biggest challenges. You will require the money for many activities like setting up the systems, Purchasing the Tools, Marketing Your Product/Services, maintaining your product stock, etc. THis is one of the most common challenges faced by entrepreneurs.

Solution– Cut down your unnecessary expenses. Avoid buying things; if you can get things on rent, do not buy. Like you can rent the computers, printers, Furniture, and Servers. Never take fancy offices just to show off. You should also not hire people in the beginning; instead, outsource them and get your work done.

2. Generating Quality Leads

It is one of the biggest challenges a new Startup faces. As per a survey, more than 60% of startups admit that generating high-quality leads is one of their biggest challenges.

Solution– Follow the steps I will explain in the Lead Generation Chapters. In addition, I have explained the free and Paid methods to generate quality Leads.

3. Converting Leads Into Paying Customers

After generating Leads, this is another biggest challenge many entrepreneurs face. They don’t know how to convert the leads into paying customers.

Solution– Follow the steps I will explain in the Lead Generation Chapters. I have explained in detail how you can convert the leads into paying customers with a proven system.

4. Retaining Customers

Retaining a customer costs you less than acquiring a new customer. But this is another challenge a new Startup faces. Most entrepreneurs focus on acquiring new customers, but they hardly know how to retain a customer for a long period.

Solution– Give an intense focus on Customer Support Services, Provide a better product & Services than your competitors, and keep improving them.

5. Providing The Competitive Price

It is another big challenge most startups face. You live in a competitive world, and there is massive competition in the startup world. So, you will find many startups and companies that are well funded by investors and burning the money by offering huge discounts to acquire new customers and kill the competitors.

As a new startup, you would have limited cash so, you cannot burn the money like them.

Despite having good products & Services, most startups lose ground because of the intense competition.

But customers do not care about this, and they go for the services or products where they are getting them for the lower price.

Solution– Do not try to compete with the big fishes; instead, make your own Market Positioning. It’s not like you should not compete with big players; you should but make a proper strategy for this.

6. Hiring The Right People

It is another biggest challenge Startups face. New Startup has to face many problems in hiring the right people. The main reason is that candidates do not trust a new Startup. They think there is no career security working for startups, so they do not give priority to the startup for their career growth.

Solution– First, if you are new, do not hire the people; instead, you should employ freelancers on task-based jobs. But remember, always hire good freelancers that have a good track record. You should hire people who have the skills required to effectively and efficiently build your product or services. Most startups hire low-skilled people to save money but remember your core team should be competent enough; otherwise, it will cost you more than you think.

Also Read: Why Startup Fails – 9 Reasons of a Startup Failure

7. Retaining The People

As a New Startup, you would have a limited cash flow, and sometimes you delay the salary of your employees, which leads to attrition. Sometimes, employees do not feel excited about their daily work.

And most of the time, the employees are assigned multi-tasks, and there is a lot of pressure on them to fulfill the timelines. And This way, employees become dissatisfied with the job. Employee dissatisfaction leads them to Leave the Startup.

Solution– Try to give a proper structure to your employee’s hierarchy. Make a Clear Job Description for the Candidate and discuss that clearly during the Interview. This way, a new employee knows his duties clearly and feel good. Try to hire people who are teachable and have a desire to grow. Look for the people who focus on learning more than their salary. You should also focus on your employees’ welfare and learnings as much as possible.

So These were the Biggest Challenges Faced by Entrepreneurs and the problems faced by startups. If you want to make your startup Successful then be ready for these challenges and apply these solutions to overcome to the challenges of new venture startups.