Big 6 problems Egyptian entrepreneurs face & solutions

Problems Egyptian entrepreneurs face are different according to the type of product or service they offer. But there are generally 6 problems Egyptian entrepreneur face. Let’s explore them together along with their solutions.

Big 6 problems Egyptian entrepreneurs face & solutions

1. Speed in every thing:

Most of the Egyptian entrepreneurs start their businesses fast. They want to succeed in their business quickly & enjoy the business’s profit. So, most of them do not prepare a feasibility study before starting in spite of its importance. As it is an analysis & evaluation of a project for determining its technical feasibility. Its cost and whether it is profitable or not. So they fall in some troubles such as high cost of operations, low sales, high inventory & finally business failure.

Solution:

• As a startup you have to make a feasibility study before starting your business and spend money & resources.

• Also, you should prepare a business plan which is a framework for your business. It defines your business priorities. And sets the marketing & financial plan. Also it determines the exact financial needs.
• If you are not sure about how to make a business plan you can hire a business management consultant to make it.

2. Competition

Competition is one of the most important problems Egyptian entrepreneurs face. Because most of the Egyptian entrepreneurs start their own businesses without studying their markets. And that’s why some Egyptian entrepreneurs fail.

Every industry has its own big players. And they got the trust of their customers along the years. Some start ups do not know what competitors offer to their customers & for what price. So they may offer their products or services in a different manner that customers may dislike. Or they may sell their products or services with different prices.

Solution:

If you are a start up you must prepare a market analysis. Because it provides you with:

• Information about your customers.
•  Also information about the competition
• And the industry in general.

Here in SME Consulting Castle we provide you with a detailed market analysis which will help you better target your customers. And help managing your business obstacles. Also, discover your strengths & weaknesses and how to overcome them. It also highlights any opportunities available in the market and any threats may face your company.

3. Cash Shortage

This problem has two reasons:

• Spending business’s daily revenue on personal expenses such as home rent, family’s food supplies, phone bill & other family’s expenses.
• Ordering big amounts of products or raw materials from suppliers and producing it, then failing to market them in a short time.

Solution:

• Separating business revenues away from personal and family expenses.
• Ordering is based on the business plan. Because it contains the operation plan, the marketing plan & the financial plan.

4. Inappropriate Product or service specifications

Some of Egyptian entrepreneurs or startups sell products or services that are different from customers’ requirements. Then they face loss without knowing the cause. Again because they did not prepare the proper market research before starting to know what their customers prefer to buy.

Solution:

• Prepare proper market analysis to know your customers’ preferences.
• Know what your competitors offer to their customers and for what price.
• Start offering free samples to your friends or some people to collect their opinions about your products. Then use this feedback to modify your products.

5. Absence of Financial records

Another very common problem of the problems Egyptian entrepreneurs face is the absence of  financial records for their businesses. This problem results in 4 issues:

1. Makes startups unaware of their businesses’ actual performance.
2. Startups become unable to order products or raw materials from suppliers on actual & accurate basis.
3.  Also makes them unable to see where their weaknesses lie to improve.
4. Besides it make them do not know their monthly revenues & expenses. Hence cannot make any financial statements such as income statement or balance sheet at the end of the period.

Solution:

1. As a startup you must keep financial records for all your transactions.
2. You should revise them every month before ordering new stuff.
3. Try to make your financial statements every 3 months as it helps you to know your actual performance.
4. Using these financial records try to figure where your weaknesses lie and improve them.

Read More about our financial projections service.

6. Poor management

Throw the previous discussion we can conclude that some startups lack the managerial experience to run their businesses. Which causes several problems above of them is incorrect decision making. That may lead to business failure in some cases.

According to Wikipedia a significant proportion of start-up businesses have to close due to “lack of funding, bad business decisions, an economic crisis, lack of market demand—or a combination of all of these.

Solution:

• As a startups should take courses in small project management.
• Attend workshops about small business management.
• Hire small business management consultant to tell you what exactly you should do to succeed in your business.
• Or you can hire a manager with past experience in small business management.

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