Problems Every Startup Business Might Encounter

Every new relationship can be fraught with difficulties that need to be ironed out and starting a new business is very similar. Here are a few difficulties that one come across when starting a new business.

1. The Market is Saturated.You might have started something then suddenly realise that the market you intended to enter is actually saturated. Innovation is key. The Accessories market is actually saturated with Chinese imports that come in at a very much reduced price to what Beautiful Bracelets sell for. The important thing here is, to then find a niche market. Beautiful Bracelets have been compared to other types of Bracelets that I hadn't even heard of before commencing the Radio 702 Money Show R1000 Challenge. But my designs are slightly unique, and I have purposely worked on designing and manufacturing a product that I haven't been able to find anything exactly like it, anywhere. And I innovate quite often, creating new designs weekly to keep up with latest fashion trends. I am keeping my research up to date by speaking to store owners who are currently selling accessories, especially Bracelets.
2. One of the Partners isn't Delivering. You may have a partner who doesn't pull their weight. In my first business, a recruiting company that required an early start each day, I made a mistake of pulling in a partner who arrived at 10 or 11am after spending the morning at the Beauty Salon! That partnership didn't last long at all.
3. Sales aren't meeting projections.When projecting numbers, especially if you are presenting to potential new business partners or to a bank for financing, it is always better to "under promise and over deliver". This makes the business look good. Very often customers might be slow to accept a new product, preferring to stick with what they know. One has to work harder to gain acceptance.
4. Under Promise and Over Deliver! If it is an online business (Beautiful Bracelets has a website where people can order online and get Beautiful Bracelets delivered to them), then there might be problems with delivery. Like the road transportation strike at the beginning of October just as this business was starting. Deliveries that were usually "overnight" could take 10 days. To cover for that kind of problem, it is once again better to "under promise and over deliver". Even if you are paying for overnight delivery, tell the customer it will take up to 10 days. That way you're covered for any eventuality.
5. Pricing issues. Do your research correctly and don't sell for a price that leaves you with hardly any profit. The price should be at the maximum price that the market will bear. Handle your price increases in the right way. That is a matter for a separate Blog, it is very important! You can lose customers if the price reflected on your website and in the stores is different. Keep the price uniform on all platforms.
6. Cashflow is killing you. In a sales or service oriented business, it is very important to be securing new selling or business opportunities on a daily basis. That is crucial. Work out the sales cycle. For example, in recruiting, we worked on a 21 day turnaround. If we were not making cold calls and getting Resumes out to clients on Day 1, there would be no deals closed on Day 21.

Take control of the destiny of your business and learn from the challenges. The real fun begins when the honeymoon is over!