Businesses may face various challenges in 2023; some outside of their business and some in business. As an entrepreneur with experience from various industries, from trade to production, I can anticipate some of these challenges firsthand. Let’s look at them from the perspective of a Bangladeshi businessman.
The biggest challenges, from the beginning of 2023 to the rest of the year, will come from abroad. It is not always under our control and sometimes there is no solution.
However, it is important to be aware of them so that we can avoid the worst consequences, remembering that the real challenges will always be there. We will look at these things based on what 2023 may bring for us.
In December 2022, the price was close to 9%, and as the economy began to recover, the high demand for goods put pressure on prices. To make matters worse, the cost of energy rose.
Inflation is a particular concern when we hold large amounts of cash. The money has lost value because the money is in the checking account. On the other hand, the products and materials needed for production are more expensive.
To limit the negative effects of inflation, we can try to maintain a low income. For example, we can now stock up on food that will be needed later. Or, if you are looking to invest in the improvement of your business, it may be a better time than the last time. So, the worthless cash can be deposited elsewhere without losing its intrinsic value.
Other businesses that export, most of our domestic industries are highly dependent on foreign imports. And because of foreign investment, many companies can’t keep enough raw materials that will hinder production, and may lead to layoffs. .
The balance of foreign currency with 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 to keep up with that, local businesses will face problems in maintaining production and fixed costs that cannot control the release.
There are also some things the industry has to offer. For example, a stable cash flow is essential for a company to survive. And each business is connected to other businesses.
For example, the machinery industry is connected with the assembly plant. So, even if the production of equipment is going well but the installation of buildings is not good or vice versa, the supply chain or the market will be disrupted.
Most entrepreneurs struggle to pay bills, pay employees, and rent rather than earn a steady income. These problems often arise from late payments. In most cases, the customer wants to pay 30 days after receiving the bill, and in some cases, 60 days after receiving it.
To reduce this delay, he may need to bill every 15 days instead of monthly. This is the average waiting time from one payment to another. Another option is to require a deposit at the beginning of the contract.
Funding is a problem faced by both new and established entrepreneurs. If you’re in the early stages, you might be looking for an angel investor or seed funding. If you are an established business, you may need to pay additional fees or supply costs over time.
If the economy continues to grow in 2023, money will continue to be expensive. If you are going to use a line of credit, you can improve its use by implementing a better cash flow, which should save you on interest payments.
In summary, the performance of the entrepreneur in 2023 will only be wonderful if he can survive the year by keeping cash, without suspension, and with good management of money.
In 2023, we should not look for high profits, but focus on maintaining the business. Being a successful entrepreneur may be one of the most difficult jobs one can have but it is also one of the most rewarding.
It is not the money that is the most satisfying, but the satisfaction of overcoming new problems and always coming up with creative ways and working hard. So, new entrepreneurs should not lose hope in 2023.
The author is the CEO of Miyako Appliance Limited, Bangladesh and a former Doctor of Business Administration from IBA, University of Dhaka. He is also the Adjunct Associate Professor of SBE, Independent University Bangladesh.