Tough lessons in running a business from the entrepreneurial coalface

Students rarely get the inside track on the hurdles and challenges faced by entrepreneurs day-to-day. They can be forgiven for thinking that setting up and managing a business is, in the textbook world, pretty straightforward. Get the marketing mix right, raise the finance, motivate the staff & the jobs a good’un. Yeh, right. Sure

So this excellent article in the Telegraph might help provide a reality check. It is certainly packed full of useful discussion points. Just look at some of the problems encountered by a nice mix of businesses and entrepreneurs:

• A stonemason for whom demand literally freezes when the weather turns wintery
• Declining net profit margins as competitors fight for market share in an industry with much spare capacity
• A major customer going into liquidation leaving a firm with a substantial bad debt
• Rapid growth in revenue highlighting deficiencies in stock management and customer service
• Tricky decisions about whether to delay investment in research & development as a result of weakening demand from the public sector
• A franchisor that is struggling to open new locations