The 11 most common Entrepreneurship Challenges
Getting a business up and running is no simple task, and you’re bound to encounter roadblocks along the way. In today’s article, I’ll go over the 11 most common challenges faced by entrepreneurs in today’s business climate and give you a couple of tips on dealing with them. I’ve always held the view that entrepreneurship is just as much a journey of self-discovery as it is a road to financial independence. And, with this post, I’ll show you why I feel that way. So, it doesn’t matter if you aren’t a business person just yet, or if you don’t plan on starting a business at all.
There is a lot of business advice you can learn in my blog
As I’ve said many times before, ideas only turn into reality if you act upon them. You might have the most brilliant idea in the world, but unless you put it into practice, it won’t ever get anywhere. And, believe it or not, this is the number one reason for business failure all across the world.
A vast number of businesses fail before they even get a chance to get off the ground due to people refusing to act, as a result of self-doubt. If you want to succeed, you need to build up your self-confidence and never stop believing in yourself. Just remember to be reasonable.
2. Making the best out of a bad situation
No matter how you look at it, starting a business is a risky ordeal. Things might fall apart any second. And, especially at the start, you’ll be working with less-than-ideal circumstances. Or, in other words, you’ll be in a bad situation.
Knowing how to make the most of it, with your limited resources, limited manpower, and no established reputation to fall back upon is the very skill that will carry you through to success.
3. Lack of resources
Most entrepreneurs don’t start with a whole lot of resources. I know I didn’t. But you shouldn’t let that hold you back. Don’t just sit there and wallow in sadness because you’re short of money or willing hands. Instead, focus on efficiency. And this is where budgeting comes in.
Through careful planning and budgeting, you can leverage what little resources you have to get off the ground. But it doesn’t end there. There will always be someone more successful, some who’s been in the game for longer than you, who has more money, more employees or better equipment. This is a simple fact and one that you’ll have to face and deal with. Remember where you started from and how far you’ve come, while being at a disadvantage.
4. Lack of security
As I’ve already said, you don’t want to ditch your old job before your business really gets going. Because, once you do, you can kiss the safety net goodbye. When you’re your own boss, you can no longer just show up to work and expect a guaranteed cheque at the end of the month.
Now, everything is in your hands. For many young entrepreneurs, this can be a stressful or even scary transition. But it’s also so exhilarating. You’ve finally made it! You’ve taken control of your destiny and whether you succeed or fail is entirely up to you. Just keep working hard, and everything will be alright.
5. Lack of support from those around you
Most people will generally try and be supportive of your ideas. Unless they’re afraid of a potential failure, they’ll try their best to keep your spirits high and offer comfort during difficult times. But few of your friends and family can truly relate to you and your worries now.
This is why I wholeheartedly recommend joining a business networking group. It will put you in a situation, surrounded by like-minded people who share similar goals and dreams.
6. Lack of know-how
Ever wonder why all those company websites you’ve come across online like telling you how long they’ve been in the field? It’s not only to make themselves appear prestigious but mainly because experience and know-how go hand in hand. And, when you’re just starting, you’re guaranteed to lack in both. Regardless of your starting resources, you’ll need to learn a whole host of new things before your business can start making a serious profit. With time, you’ll get more efficient in your work, and things will be much smoother.
7. The technicalities
I’ve already mentioned this on a couple of occasions, but I’ll go over it again, as I believe it to be absolutely vital for business success. You need at least a basic understanding of how everything works in your company if you want to leverage it truly. And don’t get me wrong – I’m not telling you that you have to be a master in every category, or be personally involved in every single aspect of your business.
That’s simply not possible, because you can’t ever hope to have enough time to do it. But there is a certain “floor”, a minimal level of competence that you should aim for. For example, if you want to have a good online presence, you don’t need to be a marketing expert or a search optimisation guru. You can always hire a specialised professional to do these things for you. But having a good grasp of the marketing principles, of what the Internet is and how Google operates will help you a great deal.
It will allow you to pick the best candidate for the given task and ensure that you get the most out of your website. And this goes for every single aspect of your business!
Entrepreneurship does require a certain degree of multitasking. And, while I usually advise people to avoid splitting their attention between different tasks, it is sadly unavoidable while you’re just starting out. At the very start, especially if you haven’t built up substantial capital to fall back on, you’ll have a lot on your plate.
Chances are that you’ll have to do all of the marketing, sales and customer support on top of providing the service. And this is a huge turning point for a lot of people. Ideally, this period will not last long – you should try to get a team going as soon as you can afford it, but there’s no denying that multitasking is a crucial skill.
9. Market Changes
All markets change and evolve. New trends arise, making the older practices and approach less effective, or sometimes – straight-up bad for your business. If you want your business to grow, you need to be ready and willing to adapt. Digital services will change their algorithms, goods, and services will go up or down in popularity, shares will become cheaper or more expensive, and so on. You can’t allow yourself to fall behind.
10. Legal issues
Just as markets continually change, so do laws. Something that’s completely acceptable to do today might become illegal tomorrow. Tax rates and requirements can dramatically shift. Staying on top of contract technicalities can be incredibly difficult if you lack sufficient understanding of the legal system in the countries that you conduct business in. This is why I’ve always advised people to find good lawyers and accountants as soon as possible. Especially as your clientele expands, you’re going to quickly begin appreciating the benefits of working with professional lawyers and accountants.
11. The burden of leadership
Running a successful business has a lot less to do with owning a company than with leading it. The smaller your team, the more significant the impact of your ability to lead, will be. This is why most people will tell you that being a good leader is pretty much a requirement for starting a business. Finding a good team of reliable, knowledgeable and passionate people, while working with a tight budget is an achievement in and of itself, but it’s only the first step. Once you’ve got your team, you’ll need to make sure that they’re kept happy and productive. That is unless you fancy losing them or worse yet – losing business.
How about you? Have you gone through any business-related challenges? I would love to hear about your experience. Let me know in the comments below! I love hearing from you! Join me next time when we’ll return to our investment series.
Until next time – stay green and motivated!
Suggested for further reading:
- How To Set Your Goals
- 17 Ways To Avoid Regrets In Your Life
- Don’t Let These 13 Things Hold You Back
- Why Should You Read A Book Every Day
- Audio books on Audible – use Audible to listen to the books, if you don’t have time to read.
- Rich Dad Poor Dad – Robert Kiyosaki
- Money: The Top 100 Best Ways To Make And Manage Money – Ace McCloud
- Business Secrets from the Bible – Daniel Lapin
- The New One Minute Manager – Kenneth Blanchard
- Eat That Frog! – Brian Tracy
- Key Person of Influence – Daniel Priestley
- The 4-Hour Workweek – Timothy Ferriss
- Keys to Success – Napoleon Hill
- How to Be Brilliant – Michael Heppell
- The Millionaire Next Door – Thomas J Stanley
- MONEY Master the Game – Tony Robbins
- Unshakeable: Your Financial Freedom – Tony Robbins
- The Intelligent Investor – Benjamin Graham
- The Wealthy Barber – David Chilton
- Secrets Of The Millionaire Mind – Harv Eker
- Think and Grow Rich! – Napoleon Hill
- I Moved Your Cheese – Deepak Malhotra
- How to Persuade and Influence People – Philip Hesketh
- Legacy – James Kerr
- The 7 Habits of Highly Effective People – Stephen R. Covey
- Finding My Virginity – Richard Branson
- 24 Assets – Daniel Priestley