A huge percentage of Filipinos are business owners. Thanks to the transformation seen in the political and economic sectors. Many turned into business making the country the most dynamic market to invest in.
Furthermore, the lower tax rates provide entrepreneurs with a conducive environment to grow and thrive. However, despite these factors favoring your business, there are challenges you’ll face. And if you pull through your business will break even.
In this article, we’ll tackle the major challenges an entrepreneur should prepare for. Without wasting time let’s begin.
Major challenges faced by businesses
For any business, you plan to start up and run competition is one of the challenges. Nothing is new under the sun unless you’re the first person offering the product. And if so, expect to face competition in a few years.
Your competitors are not asleep and they are always coming up with new inventions and business ideas. These are strategies that determine the cell life of your business. In most cases, you’ll find your loyal consumers going for the competitors’ products. This could be because of one reason or another.
If this indeed happens don’t despair or begin to lose hope. Competition is healthy since it keeps you on your toes. Instead of worrying come up with unique stunts to sway more consumers in your direction. Don’t copy what your competitors are doing since that taints your brand and image.
2. Reliable Team or Support system
When you start your business very few people will share your vision and mission. But the moment you get to break even, everyone would want to be a part of it. However, before you get there you’ll be on your own, working extra hours in the first few months or years. It’s at this point most people lose vision and hope of their dreams which is not advisable.
Nonetheless, it will reach a point you can hire a team. During this time, you can relax a bit and take care of yourself and your family. With that said we must agree hiring a team isn’t easy.
Your team requires training which takes a lot of time and effort. Before it reaches a point where you can lay back and the business continues to run. For this reason, hire individuals who are ready to learn. Though you might use your relatives or family members, it’s wise to set expectations for them.
Whether you’re a newbie or expert in business you must have been inexperienced about one thing or another. This could be about your finances, operational costs, staffing among others..
But there is no need to be alarmed when you face such problems. No one is perfect and we are meant to learn from our mistakes. Pick the lesson and move on but don’t condemn yourself. That’s because it can affect your business growth drastically.
At the same time be aware of your competitors since they might use your weakness to put you out of business. Instead of giving up, take this as a challenge and prove them wrong. Bottom-line is never to repeat the mistakes as that might cost you more than you could imagine.
4. Cash flow
For your business to begin to roll cash in it may take around 5 years. Though, within the first three years, you’ll notice the massive capital injections you make. By this time your overhead expenses will be more than sales and in most cases, you won’t get a return on investment.
Unfortunately, you’ll have to close down if you can’t meet the daily expenses. But this is expected that is why there are lending firms offering business loans. One of the firms which have held the hands of many Filipinos is Robocash. The platform gives you access to affordable loans to facilitate your business. Therefore, reach out and see your business grow.
5. Welcoming change
Change is inevitable and you must be dynamic to survive, but if you’re rigid your lifeline is limited. Have in mind your business won’t continue to be successful once it has reached its break even point.
It will reach a time when sales will begin to even out and then decline. And if that happens what next? This marks the time to reinvent your brand and come up with a consumer-based product. As time changes so do consumer needs, ensure you are up-to-date with the daily trends to remain relevant.
The best way to accumulate wealth is by establishing a business that meets your consumer needs. Establishing your business in line with solving human problems makes it successful. However, your journey won’t be smooth in the first three years due to various challenges.
Sean Martin D. Plantado, a finance specialist at Digido Finance Corp. says start-up loans in the Philippines are very popular among Filipino businessmen. They are available to any entrepreneur, as long as they can prove their ability to pay and that the business is profitable.
For this reason, we’ve compiled some of the major challenges you stand to face. Go through them and master how to navigate through. Remember challenges are there to open your mind not to discourage you, remain positive regardless and always hope for the best.