anasey:
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anasey:
On the 24 March at 19:09, I asked a question which was...
Que:What are the major challenges
entrepreneurs face when starting a
small business from scratch?

A follower of Entrepreneurial Quotes on my facebook page said...

Response: Some of the problems that entrepreneurs face is structures to put in place so as to develop that business idea and most critical one is capital for starting up.

I shared more insight to the problems that was listed....

More Insight: Thank you for your response. Let me start with taking out the issue of an Entrepreneur who has to develop his/her Vision and Business Idea. I'll start with this Quote by Thomas Edison, he said “To have a great idea, have a lot of them.”

I agree with you that developing your business idea can be a very difficult task for start-ups. Finding the right business opportunity or creatively developing an idea is certainly not an easy task. As an Entrepreneur, you must possess the ability to see what others can not see. While others see problems, you must see opportunities.

You must realize that there is far more opportunities than there is abilities.
But seeing opportunities is just the
beginning. The main business challenge is going to be your ability to forge that opportunity into a business
idea. I see this as a business challenge
because the process of transforming
problems into business opportunities is
like trying to turn lead into gold.

I can say an entrepreneur creates value out of nothing. There are few processes I'll like to list....

Identifying a problem > Seeing an opportunity in the problem > Coming up with a solution > Forging the opportunity into a business idea> Integrating your solution into a business plan.

It is the duty of an entrepreneur to bring into present what is yet to be. It is also the duty of an entrepreneur to bring solutions to
other people’s problems.

Let me tackle the second part which is the issue of raising capital.

After developing your ideas, the next
challenge an entrepreneur is likely to face when starting a business from scratch is that
of raising capital.

I'll pick the words of J. Ogden Armour, he said “Capital can do nothing without brains to direct it.”

Trying to convince investors about
something that doesn’t exist is definitely a challenge. Trying to make them understand that you are trustworthy and equal to the task is not child’s play especially when you are
building your first business.

Benjamin Franklin said “If you want to know the value of money, go and try to borrow some.”

There is more to raising capital than just simply asking for money. Most investors want to invest in already established businesses with little or no risk and they want to be sure that they get returns for the risk they took.

Most brilliant business ideas never scale
through the venture capital stage
because the entrepreneur is either not
prepared or lacks what it takes to raise
the needed capital.
I'll borrow the words of Robert Kiyosaki:
“The world is filled with brilliant ideas and excellent products but the world lacks seasoned entrepreneurs.” –

To overcome the challenge of raising
capital, you must develop the ability to
sell your idea and vision to potential
investors. When I say “ sell your
ideas“, I mean improving your
communication skill and your manner
of presentation.

In the game of raising capital, you must have a good story to tell; backed by a strong business plan and good persuasion skills. You must know how to pitch your ideas to angel investors and venture capitalists.

There are other ways capitals can be raised. Watch out! I'll be writing an article on that.

1k001:
Lack of capital is quite a hindrance to the average startup entrepreneur. I however posit that in our instance, the bigger problem is poor knowledge and consequent inability to execute. The advantage of not having money is the opportunity it gives to become more creative and learn quickly. When one is able to execute without money, the capital will come eventually and propel one to greater heights. On the other hand if one keeps waiting for money before executing anything, the money will not make a difference if it does come.

Bottom line is us entrepreneurs should stop complaining about capital, we need to get off our bum and start executing in any way possible. When this is done consistently, getting money will be easier and more useful.

bisolaadeniyi:
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