Running a Business is Never as Simple as it Looks!

Non-corporate SME businesses in India have an unmet financial need of Rs 9 lakh crores, says an article published in IAmWire in July 2015. As businesses grow, they are faced with both opportunities and challenges. And these challenges need to be addressed immediately in order to keep the wheel rolling.

Day-to-Day Issues Faced by Entrepreneurs

Here are some challenges that enterprises face on a daily basis and how to overcome them:

1. Working Capital Gap – Working capital is defined as the difference between current assets and current liabilities. If your working capital ratio is less than one, then it means that you are running short of funds to pay off your short term debts. For example, you might have to pay your supplier in 30 days and start your next phase of production, while the payment from your previous phase of production is not expected to arrive in the next 60 days. In such a situation, you can take a working capital loan from a bank or NBFC and pay your supplier. You can repay the loan when you receive the final payment from your customers.
   
2. Maintaining the Optimum Level of Employee Pool – Productivity of any firm is directly proportional to the efficiency of the employees. Also, an optimum number of employees is essential to drive growth. A good HR team can help hire the best talent in the industry and solve any workforce issues in an emergency situation. You can also outsource your work to expert individuals and get the work done without going through the hassle of hiring a full team.
   
3. Finance – Growing enterprises need funds everyday for various purposes, such as buying raw materials, paying their employees, maintenance, product innovation and so on. Running out of funds can land you in debt, thereby cutting short your future business endeavours. You can avail working capital loans to fulfil your short term aspirations, which in term would take care of your long-term business goals.
   
4. Sales/Marketing Ineffectiveness – Are you unable to see the desired results on your sales chart? If so, then it is time you analyse your marketing strategy. Market research is not a one-off thing that you do while setting up your firm. Consumer behaviour and market response change continuously, therefore you must access customer response to your product and your position in the market at regular intervals. You must analyse the USP of your product and what other new things you can bring to the table. This will help you reinvent your product to meet the changing customer preferences.
   

A productive workforce and efficient management of funds, along with a clear business plan, are what make a business successful. Both banks and non-banking financial companies offer working capital loans to entrepreneurs, so that they can avoid short term debts.