Starting a new business venture elicits excitement and challenge for entrepreneurs across the spectrum, be it those stepping into the arena for the first time or experienced business masterminds. Let’s explore some common concerns business owners must address to advance their entrepreneurial journey.
- Business bank account selection: One of the most critical decisions is choosing the right business bank account after company incorporation. A business account is paramount for keeping business expenses separate from personal expenses. Without this demarcation, it can be difficult for business owners to allocate funds and carry out financial operations.
The solution: To overcome this concern, a business owner should test certain factors against their needs. These factors include, but are not limited to:
- Fee structure: Depending on the capital, type, and scale of the business, a business owner should choose a business bank account that complements their financial habits. Unnecessary charges may eat into the budget, potentially limiting the resources available for other business operations.
- Online banking capabilities: In a time when almost everything is available online, online banking facilities are now necessary. A business owner should go forward with an account that provides a secure and reliable online banking facility so that all business transactions can be carried out promptly.
- Support international transactions: If a business is operational in more than one country, relying on a business account that doesn’t support multi-currency features doesn’t make much sense. Instead, a business owner should go for an option that supports opportunities beyond borders, such as multi-currency accounts, cards, etc.
- Recruitment and retention: An active workforce is the most important asset for any business. In a dynamic industry, innovation and fresh perspectives are the driving forces that keep a business propelling through the high and low tides of market sentiments. However, building a reliable team is one of the biggest challenges for all business owners.
The Solution: Employers should focus more on the quality of the team rather than the quantity. While it’s true that having many hands working on one task results in more work being done, the work is unproductive if quality degrades. To overcome this, there are certain things that a business owner can do to improve both recruitment and retention.
- Focus on motivation: When recruiting new employees, employers should carefully assess the motivation of the candidate rather than simply relying on experience. A person who’s open to learning is far more likely to help a business grow than somebody who’s not open to growth.
- Appreciate your team: It’s human nature to want to feel valued and appreciated. When an employer appreciates employees’ work, the team becomes more motivated and productive. Employees who feel valued, heard and rewarded are likelier to stay in a company.
- Lack of capital: A business functions optimally when the cash flow is optimized. For that to happen, a business needs strong capital. Unfortunately, most businesses face financial hardship of some sort, which can impair several business operations.
The solution: Businesses should seek funding from angel investors, venture capitalists, or other investors. If this is not an option, a business may even look into different forms of credit, such as loans from the bank. To successfully attain funding, there are a few things that a business owner can do to create a good pitch, which includes:
- Conduct thorough market research: Investors feel more confident in business owners who clearly understand where they are and what they’re doing. To gather this information, business owners must research the market, evaluate growth potential, and identify competitors and a competitive edge.
- Create a robust business blueprint: A good business plan is a guiding light for businesses seeking funding. When creating a business plan, a business owner should highlight the milestones achieved by the business and include statistical data to gain an investor’s trust.
- Be transparent: A business owner should never manipulate any financial data when pitching a business to investors. Being open about the company’s profits and losses can help foster trust between investors and the business. Think for yourself – would an investor feel valued if they later discovered their investment decision was based on incorrect financial information?
There can be many challenges that a business owner can face when incorporating a new business, but to navigate successfully through all challenges, business owners need to step in with a clear strategy and willingness to change.