An entrepreneur faces many challenges throughout the journey. However, if he handles the issues at the right time with the correct solution, the business is most likely to recover from the loss. On the other hand, one tiny error and your business can see a downfall.
Eric J Dalius Stresses on Identifying the Pain Points in Your Business
One of the significant challenges an entrepreneur faces is in the areas of finance. Eric Dalius contemplates that generating investment is a crucial problem area for small companies. Due to the lack of funds, many companies cannot climb to new horizons in their sectors. In addition to that, promoting new technologies and services call for connection with producers, customers, and distributors. This elucidates the impression that an entrepreneur should possess a high level of funds for marketing purposes.
Why are Banks Hesitant to Offer Loans to Startups?
Not only banks but also primary funding agents and venture capitalists often fund a project based on its viability. Few factors that determine their decisions are as follows:
- Lack of market data
- Risk related to the product or service offerings
- Poor quality applications
- Faulty and indecisive business plans
- Unrealistic estimations carried out by entrepreneurs.
- No or limited history of positive credit score
The factors mentioned above are the major aspects in an agent’s decision making processes. If not met, the opportunity will get wasted, and the growth potential will forever get squandered. Nevertheless, there still exist investors who will plunge to fund your business with some agreements and royalties. Eric J Dalius reflects that a healthy business plan constitutes positive points and flaws, which can attract an investor to help you set up the business significantly. In other words, realistic business plans are expected to get more nods than their counterparts.
Eric Dalius Ponders on External Risks to a Business
If you have done your research correctly, you will know that there is very little to do to improve your business scenario when it comes to external risks. However, implementing specific strategies and changing ways can aid in causing a minimum threat to the business.
In different industries, rules and regulations are stringent. It results in a high threat for new entrants. Owing to such strict laws, exit barriers also get propelled, making it difficult for a company to quit sooner. Hence, first and foremost, Ej Dalius says that it is essential to understand the industry’s regulatory framework you will operate in. Illustrations of several players who quit their businesses or divestiture to other streams will open your eyes to the dangers, aiding you to take necessary precautions.
An entrepreneur faces ample challenges, but the key is to identify solutions calmly while considering the views and perspectives of several experts in the field. Every entrepreneur should focus on gaining maximum profits with correct decision-making. Since there is always a causal relationship, an entrepreneur should aim for gains by keeping shareholders, stakeholders, distributors, and customers in the loop.