What Are The Problems You Face In A Business Venture?
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Well, the word “business venture” looks like a big and a complicated word, but once you know the meaning, you will be astonished. The business venture is nothing but starting a new business. Normally a business is started in a small way, maybe that’s the reason all small business is referred to as business venture also.
The profit can be earned only after taking some risks, and in business, it is a common phenomenon. A higher profit is expected by taking high risks. But how far taking risks is good depends on the market conditions. But for a small business, expert’s advice not to take high risks because the business will not be in a position to face the consequences. A businessman should be prepared to face any sort of problems while doing business but anything done above limit is always risky. However, following are some of the problems faced in a business venture:
- Management of sources of income:
The most important aspect in any business is the inflow of cash or funds. Both relate to the sources of incomes. The inflow of funds or cash means income through either sale or further investment. But a business can expect a regular sale than a regular investment. So that is the reason why any businessman gives more important to his/her sales team, and they are considered the revenue earners. This is possible only with complete coordination of all the departments. But being a small business, initially, the businessman may not be in a position to hire many employees. With the limited source of employees, he/she starts a business to achieve profits.
- The sales are of two types – Cash and credit
Both are beneficial to the company. So, when there is a cash sale, the revenue comes into business immediately. In credit sales, the debtor repays the due amount only after the given credit period. Normally the debtor repays your due amount only after the credit limit given by you, and it may range anywhere between 15 days, 30 days, 60 days, or above 60 days. What is important is be very careful when you are deciding the credit limits. To increase your sales, you allow even credit sales, but if the sale is made on a credit basis, you should keep track of the entire outstanding amount due from your debtors. You should ensure that you make direct sales on immediate payment of cash (physical cash or bank transactions). Too many credit transactions may increase your sales volume, but your money will be held with your creditors.
Only when there is frequent income of money through your sales, you will be able to meet your expenses. In case of lack of money, you yourself will land up in becoming a defaulter, and many of your debts remain uncleared. So, a business can run smoothly if the income and expenses are managed properly, and thorough control is being maintained on both of these.
- Debt Consolidation
If your debts pile up and still you are not able to repay them, then the best suitable solution is to go for debt consolidation process. In this process, all you have to do is consolidate all your payable debts and then take new loan equal to that a debt consolidation amount. Now after receiving the loan amount, plan accordingly and try to clear all the debts. Now you will be left out with only one big debt, and you will get sufficient time to clear the new debt. It is a big problem to get a new debt consolidation loan for a businessman doing small business.
The lender will be under the impression that a person who cannot repay small debts, will he be able to repay the big amount. They have every right to question seeing your financial status. So, you should ensure that you plan perfectly and try to clear this new loan within time to retain your reputation in the market. For a beginner, the reputation plays a major role in retaining the business in the market. If you are labeled as a bad debtor, then no one will give you further loans or will plan to invest in your company. In case you are unable to do the task perfectly, approach a good professional like nationaldebtrelief.com who will try to help you by giving valuable suggestion and solving your problem.
- Hiring of employees
To run smoothly, a business requires qualified and experienced employees. But your business venture is small, just analyze whether you can afford to hire employees as their charges are too much. If not, you will be left out with the option of hiring employees who are capable of managing the show.
- Management of time
Again, this is one of the most important aspects of life. Never waste your time because once you lose the time, you may never be able to get it back. As a businessman, you should always ensure the timing when you are planning to launch your product or service. A launch in the wrong timing will fetch you an only failure. So observe the market trends and act wisely.
Competitors can never be avoided because everyone is working hard to achieve success and thereby profits. So, you find competition in aspects of life. Always ensure you never lose the self- confidence and fight back with your competitors. This is a must to sustain in the market.
As it is a small business, you will need additional capital to grow your business. You can approach various financial institutions for grant of additional loans. But this is possible only when you prove your ability in running the business smoothly without any defaults. For capital supply, you can get in touch with nationaldebtreliefprograms.com.
Apart from the hurdles mentioned above, the biggest problem is your own self-confidence. Facing so many issues, you start losing your self-confidence which is not good. Whatever be the situation, ensure that you maintain the confidence levels as it is because it is your confidence levels that give you the energy to fight with the circumstances.