Lately, there has been a rather surprising proliferation of start-ups all around the world despite prevalent economic challenges. This is quite commendable and encouraging, especially for millennials who are at the forefront in coming up with new business ideas despite discouraging job market competition. And it’s not just the millennials that are doing this – we’ve got unemployed graduates, underemployed parents, recently retrenched employees, retirees, and the list goes on and on. This goes to show that more and more people are confidently taking that leap of faith into the business world. Unfortunately, consequent business challenges have become increasingly cut-throat. Case in point:
Funding has never ceased to be the #1 challenge
Considering the tough economic times prevalent in the world today, coupled with frequent economic shocks, it becomes apparent that funding will never come on a silver platter:
- To begin with, many financial institutions now offer very strict and risky credit facilities with hefty interest rates.
- This goes to show that financial institutions are also grappling with frequent shocks in the financial sector.
- Then again, if you opt to seek funding from individuals, they usually demand some serious collateral in the process.
- This ties in to the fact that everyone is indeed feeling the pinch of economic woes across the planet.
- Thus, few are generous enough to risk funding you unless a serious collateral backup is involved.
The good old days of career formality are slowly fading away as self-education becomes the norm
Having observed the originality and uniqueness of many start-ups today, it’s quite interesting how people’s careers are currently shaping up in very peculiar ways:
- For instance, going to school is no longer a universal assurance.
- We’ve seen lawyers coming up with tech start-ups, engineers have come up with hospitality start-ups, and the list goes on and on.
- I once addressed this challenge by pointing out how excessive educational formality in higher institutions of learning is inadvertently stifling the spirit of progressive enterprise, innovation, and career evolution.
- I also went ahead and highlighted the fact that employers and educational stakeholders are yet to establish a middle ground through which they can create bridges for graduates to transition efficiently into the career world.
- Unfortunately, whenever people finish school, it almost feels like they’re on the edge of a cliff with an eminent free-fall into unemployment and underemployment lurking in the shadows.
- Therefore, having finished school, many are forced to RE-educate themselves for their start-up venture.
The collective consumer mindset is increasingly unpredictable and complicated
When the economy is healthy, consumers tend to be generous and loyal spenders. This ties in to layman psychology since there is harmony and uniformity in economic wellbeing:
- Prevalent economic challenges at the moment come nowhere close to uniformity or harmony considering the widening gap between the haves and the have-nots.
- Frequent economic shakeups have also opened up an abyss of distrust between the consumer and the business.
- This shouldn’t come as a surprise considering the fact that price manipulation by businesses is quite the norm these days.
- This ties into the instability shared across the board. Thus, you’ll also find consumers employing a hands-off approach when it comes to business loyalty since many have felt betrayed by substandard and unnecessarily expensive products and services.
- Therefore, with the increasing social and economic disharmony in the consumer world, a reflection of the same will manifest through an increasingly unpredictable and complicated consumer mindset.
Having considered the emerging cut-throat challenges currently being experienced by entrepreneurs today, it’s quite obvious that an updated approach is needed in business practice. How, then, does one improve business capacity despite these emerging cut-throat challenges?
1. Strictly focus on solution-based products and services for precautionary purposes
- Unforgiving situations call for strict and assured approaches in solving them.
- Of course, every business seeks to offer solution-based products and services.
- However, few do not adhere to this strictness in the long term and thus gradually become irrelevant with increasing competition and sophisticated consumer preferences.
- Therefore, your business should constantly be motivated by challenges ‘in the NOW’.
- Of course, some take a leap of faith and produce future-oriented products, but their success is based on solutions needed in the NOW.
- However, gaining knowledge regarding solutions needed in the NOW calls for one to:
2. Question business sssumptions to avoid limiting potential
At this point, you can’t afford to play assumption games if assured profit is your true aim. So let that assuredness reflect through concrete business practice. After all, everyone is a business expert nowadays and many are always eager to offer advice regarding business success:
- But for you to succeed, you first need to trust your instincts by eliminating assumptions. How so?
- By ensuring that your uniqueness reflects from the very start of the business.
- If you know what you truly want, then concrete research is an absolute MUST and I must insist on the terms ‘absolute must’.
- Remember: we are dealing with a tough and unforgiving terrain and the last thing you want is to be a pushover of cut-throat challenges.
- Therefore, if you want to have unlimited potential, then you’ll have to scrap off popular business assumptions from your book.
Still, it’s not enough to just eliminate those assumptions. You’ll thus have to:
3. Constantly update and renew your business strategy to explore new frontiers
Whether this becomes a daily, weekly or monthly practice, it’s your call. Nonetheless, there is no point in implementing reforms only to see them drain away with time. An all-round approach is thus needed to ensure that every minute of your start-up’s existence counts:
- Earlier we talked about strict solution basis and the avoidance of assumptions.
- Couple this with constant updates on your business strategy, and your highway of consistent business performance is established.
- After all, how do you think big companies stay afloat despite constant economic woes?
- They are certainly not gods and they definitely have brains as we do.
- The difference is that their decisions are well-informed and they have hired the best professionals.
- Thus, if need be, you’ll have to employ a business strategist whose presence in your start-up is reflected through concrete performance month after month.
When people think of business capacity, they automatically think of expansion and they’re not entirely mistaken. But improvement in business capacity requires one to build on a concrete foundation of business practice, and the rest will follow. The layman will unfortunately employ the same flawed approach in business expansion only to expand their woes as well. But when you start on the basis of concrete and assured practice, then improvement in business capacity will gradually manifest with much needed assuredness. As the saying goes,’ you only live once, but if you do it right, once is enough’.