Building a skill set, having more flexibility in terms of work schedule, earning more money, and working for yourself are only some of the many great reasons why starting a business is a good idea.
However, it’s essential to note that entrepreneurship comes with a number of challenges that are rewarding yet harsh. Even the most experienced entrepreneurs deal with these hurdles, no matter how long these people have already been in business. How to launch a business in the best way possible, establishing a brand, adjusting to match or surpass the competition, and keeping the business profitable are issues that both startups and established companies have to face.
But for new entrepreneurs, there are unique challenges that can really be difficult to overcome. So, if you’ve just entered the game, or you’re thinking about taking the risk and becoming a business owner, take note of some hurdles that you’ll encounter along the way and how to effectively overcome them.
- Lack Of Courage
Despite having a passion, some aspiring entrepreneurs lack the courage needed to go on and pursue their business ideas. They get scared, and that happens even before having a chance to show what they can do and to prove themselves. Well, at some point, it can be understandable, especially considering the fact that an entrepreneur’s life is a shaky one. Every decision and initiative of a business owner goes through an uncertain stage, especially during their venture’s early stages.
How to overcome: Many people would agree that everything seems really scary at first. So, there’s definitely nothing wrong with feeling afraid. It’s also easy to feel like you have nothing worthwhile that you can offer to others with the ever-growing competition out there. However, while no one can deny that things tend to get shaky sometimes, the good news is that the journey also gets better over time. If you really have to fail, it’s better to start and fail going forward than do nothing at all. Emulate the things that the best in your industry are doing, learn from your mistakes, and keep pushing.
- Formulating A Business Idea
You must have a great idea or series of ideas before you can actually start a business. The problem is that coming up with the right idea for your business can be quite challenging. As an entrepreneur, you must have a special skill of seeing what others can’t see. What that means is that if others see problems, you should be the one who sees solutions. Now, say you already have one excellent idea, but how will you turn such an idea into a business?
How to overcome: it would be best to go for something you’d love to do and have knowledge of when searching for ideas. It doesn’t always have to be about money. Think of the things that you’re passionate about. If you weren’t afraid, what business venture would you choose to start? Be honest with yourself.
- Finding Funding
Indeed, one of the biggest challenges, if not the biggest, that aspiring entrepreneurs have to face in turning their ideas or concepts into a business venture is figuring out where to find the necessary funding. While not every business requires a significant amount of investment from the start, you’d still want to make sure that you’re in a good position to keep your business running long term.
How to overcome: You can actually seek funding through small business lines of credit or loans when you’re going to start a business from scratch. Of course, you can also fund your venture yourself using your personal savings, or maybe try to raise capital. It helps to speak with an experienced entrepreneur and try to get their thoughts when it comes to the best course of action that you can take based on your goals. Also, don’t forget to rehearse how you would pitch your business. Whether you’re going to sell your ideas to a bank or an investor, either way, they’ll surely want to understand your vision for success.
- Time Management
It’s essential to manage your time effectively. However, it can prove to be really difficult if you’re new to operating on your own schedule, and you’re still trying to build your business. At first, you might find yourself marveling at the time you have at your fingertips to focus on specific areas of your business. Still, any experienced entrepreneur can surely tell you about how difficult it is to maintain a work-life balance. If you’re going to work from home and are just starting, it’s easy to sit in front of your computer from seven in the morning up until dinner and spend an additional few hours during the night to cross a few more items off your to-do list. What’s more, chances are you’ll suddenly find yourself being manic about your work and any business-related tasks, and neglecting other responsibilities you have in life. You start to take for granted activities like exercising, spending time with your friends and family, and even sleeping.
How to overcome: While it can be tough, it’s crucial to get yourself into one unshakable routine. Every individual manages their day differently; however, if putting “do 20 pushups” on your schedule during lunchtime physically encourages you to stick to the commitment, then do it. Don’t start diving into your tasks for tomorrow if ever you cross everything off the list by 8 pm. It’s best to spend that extra time with your family or maybe entertain the idea of sleeping early. Either way, your mind, and body will thank you.
- Cash Flow Management
Cash flow is, no doubt, vital to the survival of startup businesses, yet many new business owners struggle to pay the bills while they’re still awaiting the arrival of checks. Part of the problem boils down to delayed invoicing, which is, of course, a common scenario in the entrepreneurial world. You deliver a service or product, send an invoice, then receive payment thirty days later. However, in the meantime, you are required to pay your contractors, employees, mortgage, and grocery bill. Waiting for a long time to get paid only makes it more difficult to get by. If you happen to be very unlucky, you stand to risk everything when one of your customers doesn’t pay.
How to overcome: Proper planning and budgeting are critical components of maintaining cash flow. No matter how good you are at doing these things, it won’t always take away all the stressing over your bills. One effective way to improve cash flow in your business is to require an upfront payment, more commonly known as a downpayment, for every service or product you deliver. The downpayment should cover the different expenses associated with one sale or project, as well as leave some profit for you. When you request a downpayment, you can rest assured you won’t have to pay the bills of other people. Also, by padding your requested down payment with some profit, you’ll have the chance to pay your own outstanding amounts.
Requiring faster invoice payments is another strategy that you can use to improve cash flow. Consider invoicing your clients or customers within 15 days instead of the typical 30-day invoice period. What’s good about this strategy is that if one customer pays late, you still have ample time (about two weeks) that you can utilize to address it, so you get paid before the bills for next month are due. Additionally, more and more companies today already require immediate payment when a project gets completed. Well, it isn’t a stretch to at least request immediate payment in this digital age when clients can actually pay invoices straight from a mobile phone.
Cash flow management is also something that you can address from the other side of the equation if you ask your own vendors to send the invoice to you at 90, 60, or even at 45 days to ensure sufficient time for your accounts receivable to arrive and clear. All you need is to establish a good relationship with them and strive to be a good customer yourself. In return, they’d be willing to adjust and work with you as long as you explain your strategy to them.
Consider automating invoices and paying your bills if you want everything to be a lot easier.
- Running The Show
It can be daunting to have to wear all the hats yourself. Just because you’re now an entrepreneur and you’ve already started a business doesn’t mean you should excel in all the different areas of business. As a business owner, there are several roles that you assume – from IT and innovation, to accounting, marketing, and sales.
How to overcome: Always be honest with yourself when it comes to your strengths. Also, try to understand that your time is precious when running a business. While it’s true that signing up for training and enrolling in courses can help in growing your abilities, sometimes you may be better off asking other people’s help in those areas where you struggle. These people could come in the form of a contractor who handles certain responsibilities, Best Buy’s Geek Squad, or a virtual assistant.
- Hiring Employees
Contrary to what most people think, it’s actually not prospective candidates who dread job interviews the most – it’s entrepreneurs. Having to review resumes, sit through interviews, and sift through many unqualified applicants simply to find the right candidates means that the hiring process can, no doubt, take several days of your precious time. Then, you can only hope that your offer is attractive enough to get the best ones on board, as well as retain them.
How to overcome: The best thing to do is to be exclusive. There are far too many job ads online or offline that are incredibly vague as to the particular qualifications that candidates must possess. This also holds when it comes to the exact job duties, days and hours required to work, and wages and benefits to be provided. Pre-qualifying candidates can save you a ton of time, and you can do it by posting exclusive job ads. Make sure that the ads are ultra-specific in terms of what it takes for an applicant to get hired at your company. You also have to make clear what the day-to-day work entails. Make sure to approach your employee-hunting strategy the same way you’d approach a campaign that’s customer-centric – do it through excellent targeting.
Consider arranging a “walking interview” once you already have a pool of potential employees. It’s the perfect opportunity to offer the candidates a tour and glimpse of their would-be working environments. Ask questions about the candidates’ work experiences, dedication, expectations, long-term goals, and other things that you think are relevant to the job. It’s time for employers to stop acting like overlords trying to determine which minion gets the chance to live another day. What you can instead do is to behave as though you’re on the lookout for a partner, someone you can collaborate with to help you not only in operating, but also in growing your business.
Once you’ve already picked a candidate, then before making a job offer, take the time to ask them about what specific things will make them stay employed in your company for the long haul. Tell your selected candidates to be completely honest with their expectations. Say they do an excellent job for your company, you’ll know the kind of rewards they want, and you can make adjustments accordingly. So, do they prefer an opportunity for advancement? More vacations? More pay? Or maybe freedom from micromanagement.
Doing these things doesn’t mean bending backward for your employees; the point is that if you’re going to make expectations clear from the start, you’ll have a higher chance of correctly laying the foundation for a long-term and mutually-rewarding client-boss relationship.
- Getting Clients
When you’re still in the early stages of your business, it can be difficult to get clients. You may have just finished designing your logo and making your first social media post. You might even have already launched your first marketing campaign. However, a month could pass, and still no client in your pipeline. Of course, you would become frustrated, and the idea of giving up will start to enter your thoughts. It happens to all new businesses no matter what industry you’re in, since attracting prospects and retaining customers can prove to be really difficult to accomplish.
Potential customers are normally quite hesitant and skeptical about a new business. As you would probably agree, it’s way easier to go for something that you’re used to rather than opting for what’s new and which you have no actual knowledge of. Of course, people are likely to choose businesses that already have a broad audience and customer following.
How to overcome: It’s impossible to sell to everyone, so make sure to market to your ideal customer’s fictitious representation, more commonly known as a buyer persona. Think of people who are likely to enjoy your service and product, and market to them. Also, be sure to have a significant presence online. Don’t ever underestimate or neglect the power of the internet, especially nowadays. You need to have an active social media page and have a good website for you to effectively put your business in front of your ideal audience.
Conclusion
Entrepreneurs indeed face a lot of challenges. However, there are already volumes of articles that have been published on how to overcome them. These articles, including this post, may have different suggestions or recommendations. Still, they all point to one common thought – the fact that intelligence and perseverance are the best allies you have in your entrepreneurial journey. That said, make sure to use them to your advantage as you keep on working toward your goals.
