The paper "Small Business Start-up and Management" is a perfect example of a business assignment. A lot of challenges face entrepreneurs in the course of running their business. However, it is important that such entrepreneurs prepare to deal with challenges as they arise. Nevertheless, managing a startup is not easy especially when the enterprise is family-owned. In many cases, entrepreneurs are not prepared for the challenges coming their way. The most vital issue to understand is that challenges are part of the business. Thus, each problem should be faced with determination as well as a proper solution.
The problems faced are stipulated as under. Financial versus Profitability Challenges: finances are attributed to be the leading cause of business failures. New ventures start businesses with little finance which cannot be sustainable. Moreover, entrepreneurs develop high hopes that with the little capital invested, businesses will yield massive profitability. Expecting instant profit from an enterprise is the biggest mistake that entrepreneurs make. According to business experts, a business start-up should be given a span of two years without return expectations (Arregle, Batjargal, Hitt, Webb, Miller & Tsui, 2015). Time: this is the major hurdle faced by family start-ups.
There is always a weakness in which responsibilities to manage the business is shared between the owners. Time is an important resource. Planning issues in advance as well as ensuring that duties are performed in time is essential for the prosperity of the enterprise. The schedule developed should be achievable. Entrepreneurs should allocate themselves time to perform tasks with accuracy. If there is no time allocation and adjustments for future projects, that’ s a recipe for failure.
Entrepreneurs should utilize calendars to ensure that tasks are implemented as per the stipulated deadline. Spending time effectively will actually save money for the enterprise (Arregle, Batjargal, Hitt, Webb, Miller & Tsui, 2015).
Feldkamp, F.L. and Whalen, R.C., 2014. Sources of Capital. Financial Stability: Fraud, Confidence, and the Wealth of Nations, pp.195-195.
Söderblom, A. and Samuelsson, M., 2014. SOURCES OF CAPITAL FOR INNOVATIVE STARTUP FIRMS. An emperical study of the Swedish situation. Entreprenörskapsforum.
Arregle, J.L., Batjargal, B., Hitt, M.A., Webb, J.W., Miller, T. and Tsui, A.S., 2015. Family ties in entrepreneurs' social networks and new venture growth. Entrepreneurship Theory and Practice, 39(2), pp.313-344.