Entrepreneurs may face various challenges in 2023; some outside their company and some important people. As an experienced entrepreneur from various industries, from marketing to manufacturing, I can anticipate some of these problems in advance. Let’s look at them from the perspective of a Bangladeshi businessman.
The biggest challenge, from the beginning of 2023 to the rest of the year, will come from external factors. These people are not always under our control and sometimes there is no solution.
However, it is important to know them so that we can avoid the worst possible consequences, bearing in mind that there will always be real challenges. We will be looking at these things because of what 2023 may bring us.
In December 2022, inflation is approaching 9%, and as the economy begins to recover, high demand for products is putting undue pressure on prices. What’s worse is that the cost of electricity is rising.
Amount is very important if we hold large amounts of money. The amount of the money is lost because the money is only in the checking account. On the other hand, the products and materials required for production increase in cost.
To prevent the negative effects of inflation, we can try to keep water as low as possible. For example, we can stockpile food that we will need later. Or, if you’re looking to invest in growing your business, now might be a better time than later. So, the useless money can be invested in other places without losing its real value.
Other export-oriented companies, many of our local companies are heavily dependent on imported equipment. And because of the foreign currency, many companies cannot maintain enough resources that production will be restricted, and layoffs may occur.
Total foreign currency deposits in banks fell to $4.5 billion in October, down from $5.2 billion at the end of June this year, according to Bangladesh Bank data. But in order to maintain that, local companies will face problems in maintaining production and the costs that cannot be controlled by layoffs.
There are also some things that the company inherits. For example, a stable financial system is essential for a company to survive. And every company is connected to other companies.
For example, the application industry is combined with the packaging industry. So, even if the equipment industry is successful but the packaging industry is not or vice versa, the supply chain or market will be hindered.
Many entrepreneurs are struggling to pay bills, wages, and housing instead of generating cash flow. These problems often stem from late payments. In most cases, the customer wants to pay 30 days after receiving the invoice, and in some cases, 60 days after s/he receives it.
To reduce this delay, he will need to pay every 15 days instead of every month. This is a breakdown of the waiting time from one payment to another. Another option is to require a deposit at the beginning of the contract.
Financing is a new issue that entrepreneurs are already facing. If you are still in the beginning, you may be looking for an angel investor or seed money. If you are an established businessman, you can pay more money or pay on time.
If inflation continues to rise in 2023, money will continue to increase in value. If you’re going to use a credit score, you can improve its use by investing more efficiently, which should save you a lot in interest payments.
In summary, the entrepreneur’s performance in 2023 will be good only if he can survive the year by maintaining a financial system, no compensation, and using proper financial management.
In 2023, we should not look for higher profit margins, but focus on maintaining the business. Being a successful entrepreneur can be one of the most difficult jobs a person can have but it is also a very rewarding job.
It’s not money that gives satisfaction, but it’s the satisfaction of overcoming new and constantly emerging obstacles with creativity and hard work. So, new entrepreneurs should not get lost in 2023.
Image credit: TBS
Image credit: TBS
The author is the Managing Director of Miyako Appliance Limited, Bangladesh and a former Doctor of Business Administration from IBA, Dhaka University. He is also an Associate Professor of SBE, Independent University of Bangladesh.