Challenge- A test of one's abilities or resources in a demanding but stimulating undertaking Opportunity- A favorable or advantageous circumstance or combination of circumstances.
DISTINCTION BETWEEN BUSINESS OWNERS AND ENTREPRENEURS
Objectives & Views | Small Business Owner | Entrepreneur | 1. Primary Motivation| To Make a Living| To Make a Change and Impact| 2. Personal Financial Goal| Regular Income| Exit Value of Company| 3. Career Objective| Self-Employment| Financial Freedom| 4. Financing Strategy| SBA or Bank Loans| Investors|
5. Business Strategy| Creating More Sales| Providing Value| 6. View of Assets| Real Estate and Inventory| Employees & Customers| 7. Risk Taking Profile| Stability| Willing To Fail|
8. Employee Compensation| Market Rate or Below| Will Pay for Top Talent| 9. Work Environment| Extension of Owner’s Home| Fast Paced and Growth Focused| 10. Investment Profile| Main Investor/Owner of Company| Investor/Involvement in Different Businesses| 11. Daily Actions| Day to Day Manager| Strategy, Growth and Collaboration| 12. Work Style| Long-Term and Enjoys Repetitive Tasks| Short-Term and a Serial Innovator/Inventor|
Challenges of Business Owners
Rick Suttle has been writing professionally since 2009, publishing health and business articles on various websites. He has worked in corporate marketing research and as a copywriter. Suttle has a Bachelor of Science in marketing from Miami University and a Master of Business Administration from California Coast University. Business owners often face challenges with financing their companies. Business owners face many challenges when running companies. Competition can be stiff in any industry. Thus, you must find time to keep track of what key competitors are doing. Consumer preferences can also change over time, so you must fully understand what products and features your customers want. You also will face other key challenges with regard to capital, employees and planning. 1. Financing the Business
* Owners are faced with the challenge of financing their businesses -- both when starting out and during growth phases. Sole proprietors sometimes use savings or investment accounts to start businesses. However, financing your own business can be risky. Make sure you have money for your living expenses when financing your business, as it may take months to earn a profit. It is often difficult to get a bank loan. All banks will check your credit before giving you a loan, so get copies of your credit report and make sure it is accurate; errors can negatively impact your credit score. You also can apply for a loan through the SBA (Small Business Administration). However, the SBA often charges higher interest rates, the Microsoft Business website notes. 2. Building Profits
* It can take time to build profits in a business, whether you are using direct sales or advertising to grow your business. You will need reinvest a large portion of your profits into additional advertising. Companies that use advertising build profits by gradually increasing advertising expenditures each month. For example, you may need to spend $500 to make $1,500, a 300 percent return on your advertising investment. Assuming you can average similar returns, you may decide to invest the entire $1,000 profit to make $3,000. Keep in contact with your customers. Try to get repeat sales as often as you can, which also will help you increase profits. 3. Finding Qualified Employees
* Small business owners will have the challenge of finding qualified employees. Larger companies usually offer higher salaries and better health benefits than...