Essay: Challenges, Strategies, and Success in New Ventures

This essay delves into the significant challenges faced by entrepreneurs when establishing new ventures, particularly in the context of globalization and market competition. It highlights obstacles such as competition from larger enterprises, difficulties in securing financing, lack of sequential planning, and the need for effective strategies to maximize the likelihood of success. The essay discusses the importance of clear business vision, understanding customer needs, identifying market opportunities, evaluating opportunities by considering factors like product, market, costing, skills, profitability, capital requirements, and potential risks. It also emphasizes the critical role of a skilled entrepreneurial team with technical, interpersonal, and problem-solving abilities. The essay concludes by offering actionable insights and strategies for entrepreneurs to navigate these challenges and build a successful business, emphasizing the importance of planning, customer focus, and adaptation to market dynamics.

Running head: BUSINESS ESSAY
Business Essay
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BUSINESS ESSAY
Introduction
The establishment of the new venture leads towards the financial and personal rewards.
The emergence of the globalization helps in adopting the innovative business procedures that
determines the business success (Miller 2015). However, on the contrary, such innovative
approaches in the business market are influencing the demands of the consumers as well. Mostly,
the entrepreneurs face the difficulties in the market since they need to take the active
participation in the competitive market against the giant organizations (Ferraro and Briody
2017). Accordingly, they even face some of the considerable challenges as well. The investment
of the adequate resources and efforts is essential for developing a business. The essay would thus
focus on some of these considerable challenges that have the significant impact on the new
venturing process. Every business marketer seeks opportunity to create successive positioning in
this competitive business market. Therefore, the study would discuss the probable challenges
faced by the business marketers in time of establishing the new ventures. The study would also
develop the ideas about the actions undertaken by the entrepreneurship business to maximize the
likelihood of success in the start-up business process.
Discussion
In current scenario, it has been observed the traditional avenues of the corporate growth
are becoming less attractive due to which the new ventures are emerging in a recognizable way.
The emergence of the new ventures is not an easy process for the entrepreneurs and they face
enormous challenges at the initial stage (Hatten 2015). The slow to repay investment is one of
the major determinants that generally occur in the new venturing process. The strategies applied
to the new venturing process often facilitating the entry into new business areas with the usual

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technological products and innovativeness. The larger enterprises are associated with the
different layers of management with a detailed control system. Moreover, these enterprises offer
the special advantages of recapturing the charms of entrepreneurial energy (Foss and Klein
2015). It is even essential to concentrate on some of the beneficial factors or strategies that
would help the new venture to strengthen the competitive positioning.
The first challenge is faced by the new venturing process is the enormous competition
posed by the large enterprises. The fierce competition, the low barriers to entry, and the plenty of
access to the capital resources are opportune enough for the ventures in maximizing profits. In
spite of the enormous opportunities, the entrepreneurs usually face difficulties (Breuer 2013). It
is notable that the larger enterprises usually invest more capital amount to develop the innovative
technologies. The higher growth and the extensive sources are helpful enough for the larger
enterprises to develop the customer base. These enterprises gather the complete knowledge about
the customer demands. Even when the demands are changed, these companies can utilize the
sufficient resources to fulfill the expectations or bring any innovation. However, it is quite
difficult for the entrepreneurs since they have the access to the limited resources. On the other
hand, the lack of the adequate experiences is also creating obstacles in terms of participating in a
competitive scenario (Haigh and Hoffman 2014). The market competition is thus one of the
major considerable determinants for the startup businesses.
Another difficulty for a new venturing process is the method of obtaining financing.
Sometimes, it becomes hard for the entrepreneurs to identify a fruitful financial institution that
would lend money to start the business. It is thus necessary to explore the alternative solutions
for financing. For example, the entrepreneurs might have to borrow money from the family
members, or use the personal savings. Entrepreneurs may anticipate the difficulties in financing

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for the new venture due to such obstacles. According to Wales, Wiklund and McKelvie (2015),
establishing a new business is equal to a roller coaster ride in which the entrepreneurs would face
the ups and downs. During the lean moment, the business marketers may face the considerable
challenges in investing the adequate amount of money. Moreover, they even need to develop the
emotional balance to deal with such uncertain situations. It is to be notified that the establishment
of a new venture is not the part time process. It is essential to invest the ample amount of time
that can be beneficial in paying attention to the entire infrastructures and business needs. The
proper planning within a scheduled time would lead towards successful business venture. Parida
et al. (2015) suggested that having a positive team or hiring a positive team is not the only
criteria for the business success. Leading the team towards the right direction is necessary for
developing a new business successfully. Devoting money, resources, and time are the major
components to establish a new business.
Another major issue faced by the entrepreneurs is the lack of sequential planning. A
successful new venture requires proper planning that includes the necessary steps of business
development. However, it is essential for the entrepreneurs to develop the fruitful strategy for the
sequential execution of the business planning. Formal and structured business plan writing would
be helpful in such cases (Kuratko, Hornsby and Hayton 2015). The major purpose of the
effective business plan is to identify the potential challenges that the entrepreneurs may face
during the transition period. Setting the limits of the business is also necessary for a successful
new venture. It is notable that the new ventures often strive to retain the competitive position
when it comes to the competition with the larger organizations. The lack of proper resources,
time, and sequential planning may affect the entire business due to which the entrepreneurs face
the considerable loss. Therefore, it is necessary for them to understand the effective strategies

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that can be applied to ensure the successful business plan and the strengthened business
positioning in a competitive market. The further section of the study would thus reflect on the
required actions to be taken into account for maximizing the likelihood of successful business
venture.
The first and foremost step for the entrepreneurs is to derive the clear ideas and
information about the start-up business. Having a clear vision and objective of the business helps
in understanding the right direction to drive the business and ensure profitability. Dencker and
Gruber (2015) explained that the some of the entrepreneurs come up with the clear idea of the
business, put together the sequential business plan, and invest the necessary capitals whereas
some entrepreneurs fail to do so. However, it is necessary for the entrepreneurs to resolve the
mess and develop a successful business strategy to earn more profitability. First, the
entrepreneurs need to concentrate on the potential customers for the business. Identifying the
potential customers would provide the ideas about knowing their basic needs and requirements.
Satisfying the customer needs leads the business towards the significant growth. Knowing the
requirements of the customer provides the clear vision of the business requirements (Fisher,
Kotha and Lahiri 2016). There are two ways to deal with the customer demands, either to guess
their needs or to communicate transparently. Communicating to the customers is the most helpful
way to obtain the ideas about the specific requirements. Moreover, it would be helpful enough in
recognizing the market competition in a clarified manner. Therefore, establishing the
communication media is much helpful for the entrepreneur. Using the social media websites or
digital communication or advertisements would be preferable in such cases. Many of the
businesses even guess the preferences of the customers, which may lead the business towards

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failure. The volatile customer demands can only be fulfilled by communicating with them and
knowing their requirements.
Second, identification of the opportunity is essential for an entrepreneur to ensure the
business profits. Agafonow (2014) explained that a capable entrepreneur can visualize and
exploit the opportunities, which are missed by the ordinary people. However, it is sometimes
much difficult to recognize or avail the right opportunity because it stays for a limited time.
Opportunity is generally the possibility of occupying any specific business market with the
proper innovations that can satisfy the needs of the customers. Therefore, a successful venturing
depends on the recognition of the right opportunities. The next step of a successful venturing is
to evaluate the opportunities by understanding the considerable factors associated with the
business process. The first factor is the product or services that are needed to be offered. It is
necessary for the entrepreneurs to describe the products or the services, the differentiators, and
needs to the customers (Munoz and Cohen 2017). It is also necessary to identify the competitive
benefits, supports for the customers, and after sale services of the products. It would generate the
ideas about the acceptability of the products in the market. The second factor is the market
opportunity that would determine the market demands, target market, niche market,
characteristic of the industry, and the current expectations. Identifying the demands and market
opportunity is much helpful for the business entrepreneurs to understand the competitions in the
market and desired distribution channel. The new venturing requires concentrating on these
specific aspects, which maximize the profitability of the business development.
Another factor is costing and pricing, which ensure the amount to be invested for a
business or product development. Structuring a complete and adequate budget would be
beneficial in such cases. The entrepreneurs usually face challenges in raising funds for the

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business. It is thus necessary for them to identify the relevant source to generate more funds for
the business investments. The pricing and the cost structure is also necessary to be compared
with the prices fixed by the competitors in the market. The availability of the skills and
equipment is suggestive for the new venturing process. In current time, the advancements
brought to business world have been changing the demands and expectations of the potential
customers (Dunkelberg et al. 2013). The adoption of the required equipment and technologies
will drive the business towards the expected direction and eventually would ensure success. The
next factor is profitability, which are the identification of the money-making process and the
development of gross margin. The recognition of the business return investment determines the
expected profitability from the new venture. However, it is even necessary to concentrate on the
cash flow patterns to maintain the flow of the expenditures. The next factor is to be considered in
the evaluation process is the capital requirement for the business expenditures. It is necessary to
identify the required capital for the long term process. Moreover, the new venturing discloses the
ideas about the securities associated with the funds and the potential investors. The most
important factor to be considered is the underlying risks and pitfalls. Every entrepreneur needs to
be prepared for the loss and the risks in the business (Gherghina and Simionescu 2015). It is thus
required to list up the probable risks associated with the product and services. Along with such
product risks, it is even required recognizing the risks underlying in the industry based research,
unreliable forecasts, and inability to grow the demands of the shrinking sales. The identification
of the effective value chain process is another specific factor in the opportunity evaluation.
Monitoring the opportunity evaluation process would provide the ideas about the
progress opportunity of the business. The final method of maximizing the business profit is to
assess the entrepreneurial team. It is noted that in spite of the right and effective plan, the

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business would not be successful if it is not driven by the skilled team. The efforts and the skills
of the entrepreneurial team need to ensure the proper skills to run the business. First is the
technical skill, which is the perquisite since it provides the opportunities to the entrepreneurs.
The next skill is the establishment of the interpersonal communication. It identifies the ability
to communicate with the individuals. Communication is the most effective skills that have the
direct linking with the business success. The next skill to be developed is the problem solving
skills. It is identified that the new venturing process often faces the considerable challenges and
uncertain situations. Coss, Dhillon and Udeh (2015) argued that the successful identification of
the business opportunity and emerging problems help the entrepreneurs to ensure the critical
success factors. The fierce competition, the low barriers to entry, and the plenty of access to the
capital resources are opportune enough for the ventures in maximizing profits. In spite of the
enormous opportunities, the entrepreneurs usually face difficulties. It is notable that the larger
enterprises usually invest more capital amount to develop the innovative technologies. The
higher growth and the extensive sources are helpful enough for the larger enterprises to develop
the customer base. These enterprises gather the complete knowledge about the customer
demands. The successful entrepreneurs keep the focus on such emerging challenges to ensure the
necessary implication for the business process.
The next skill is the motivation, which drives the business towards right direction.
Establishment of the personal motivation is necessary of the entrepreneurs to look beyond the
profits and successive implications. The systematic scanning and spotting the market opportunity
would motivate the business marketers (Gherghina and Simionescu 2015). Moreover, the skilled
entrepreneurs need to be adaptive towards change. The entrepreneurs have the greater
opportunity to develop the successful business venture if they are adaptive towards the

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continuous change in the volatile business market. In addition to this, acquiring the effective time
management skills is necessary to structure the entire business plan. Gathering ideas about the
entire financial management would help in calculating the considerable profits and loss. The
creative mind in the business facilitates the better business ideas and successful business
opportunities for the long run. Considering these major factors would maximize the likelihood of
the business success in a significant manner.
Conclusion
The study highlights the probable challenges that the entrepreneurs usually face during
the new venturing process. The market competition has been increasing due to which the
demands of the business market have drastically changed. The entrepreneurs need to concentrate
on the potential customers for the business. Identifying the potential customers would provide
the ideas about knowing their basic needs and requirements. Satisfying the customer needs leads
the business towards the significant growth. Knowing the requirements of the customer provides
the clear vision of the business requirements. Mostly, the entrepreneurs face the difficulties in the
market since they need to take the active participation in the competitive market against the giant
organizations. Accordingly, they even face some of the considerable challenges as well. The
investment of the adequate resources and efforts is essential for developing a business. Every
entrepreneur needs to be prepared for the loss and the risks in the business. It is thus required to
list up the probable risks associated with the product and services. During the lean moment, the
business marketers may face the considerable challenges in investing the adequate amount of
money. Moreover, they even need to develop the emotional balance to deal with such uncertain
situations. It is to be notified that the establishment of a new venture is not the part time process.
It is essential to invest the ample amount of time that can be beneficial in paying attention to the

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entire infrastructures and business needs. Enhancing the proper entrepreneurial skills would be
beneficial in maximizing the profit level of the new venture.

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