Entrepreneurs and the issue they face

Entrepreneurs encounter a variety of difficulties in today’s fiercely competitive business environment. Even while the obstacles are great, they are also satisfying. When an entrepreneur first begins out, they are typically by themselves, which means that all of the responsibility falls on them. This always leads to one working really long hours, managing several projects at once, and having to constantly come up with fresh ideas. No matter how long they have been in business, even the most seasoned entrepreneurs face these difficulties. The struggle to establish a brand, conforming so as to exceed or match the competition and ensuring the business stays profitable is a challenge for every entrepreneur no matter their years of experience that they have. Luckily for the entrepreneurs contemporary times have also favored them with more resources that enable them to tackle these problems unlike in the past. Once a person learns how to overcome these challenges they will be able to reap the rewards of being self-employed. Below are the challenges that entrepreneurs face when starting up a business.

Developing a Good Business Idea

For an individual to know if a business idea is good or bad, it will need one to have experience. It will also need a lot of reasoning to understand what it means for a business plan to be good. There is a significant need for a highly personalized business approach to the entrepreneur so that they can utilize their education, abilities, passions, interests, connections, and access to capital (Taylor, 2016). It is crucial that one invests in the right business as this will make the work easier for the entrepreneur because if the company does not help people, provide a solution, and meet the needs of the people, then the business will fail. A great business is one that has a great product or service that the owner believes in. A mistake that many first-time entrepreneurs make is trying to go big on the idea as they start. It is very vital for one to have ambition but it should also be understood that it is crucial to have some small wins so as to build on them and go bigger.

Abandoning Your Day Job

It is close to impossible for one to simultaneously manage another career while starting and nurturing a business to success. It might be easy to operate a business during its infancy on the side during the weekends and weeknights but for it to stand a chance of growing one will have to make the choice of quitting their day job. It is scary when one has to make the decision of walking away from a career that is promising, steady, and long-term for something that is unpredictable and more especially when it is the first time to run a business. There is no easier way of addressing this issue, but one should critically analyze their decision logically and also take into consideration their instincts (Hiduke, 2013). Another point to consider before quitting is how well you have planned yourself regarding finances that you will be able to survive on as your work on your business venture.

Financing

One of the biggest challenges that entrepreneurs face is the issue of dealing with finances. For experienced entrepreneurs, they find it less difficult to fund a new business as they have a few advantages over the newcomers (Taylor, 2016). This is because they might have a cash flow from either a business they had sold or an existing company that is steady which they can utilize in the funding of the new venture. The new entrepreneurs most of the times find it difficult to raise the needed capital for starting up their companies. Even after the business has already been developed the entrepreneurs still find it problematic when they try to obtain loans and lines of credit because of the eligibility requirements put in place by the banks are so high for the owners of small businesses. Also before a business starts to become successful entrepreneurs might pass through a period of financial struggles. Part of the problem of the struggle of finances comes from delayed invoicing of which it is ubiquitous in the world of entrepreneurs (Taylor, 2016). Some customers pay thirty days after they received their services or products yet they received the invoice much earlier. This will result in one paying their employees, contractors, and even their mortgage with their own savings making it difficult to pass by and if customers do not pay it might be detrimental to the business.

Hiring Employees

Picking the right team for a company that is starting up can be very stressful and arduous especially for an individual who has never managed a team before. Apart from finding the candidates that are qualified for the positions in the business, it is also important to know the cost of employing them and how they will work as part of your team (Taylor, 2016). Finding people who meet such expectations can be complicated especially when there is the pressure of filling the positions as soon as possible.

Marketing of the Business

Lacking a great and right idea of marketing and promoting a business can pose a significant problem for the new venture. It is not enough to only post about your business online or by using flyers and business cards, a marketing strategy should be more refined, savvy, and be able to cover many more options (Hiduke, 2013). Some entrepreneurs make the mistake of experimenting with different marketing strategies, and this can result in the wastage of money and not much benefit from the marketing. It is important that one develops a core marketing plan which will involve coming up with a budget and giving it to a planner to craft a market strategy that will be efficient and produce profits.

Loneliness and Self-doubt

Loneliness is an entrepreneurship problem that is rarely mentioned, but most of the new business owners go through it and are never prepared for it. It is lonely being an entrepreneur as it is a single position, meaning there are no teammates to rely on. It is also time demanding, so one will not be able to see their family that often. Many people misunderstand entrepreneurs at this stage because they do not have a chance to spend with old friends but the truth is that they are doing a one person show and it is very demanding. At the beginning of the business, almost all entrepreneurs go through the phase of self-doubt as there is a fear of failing. The feeling of self-doubt is more prevalent, especially when something goes wrong, or the venture is not growing as fast as one expected it to, one can easily be discouraged. The best way to overcome this feeling is to motivate yourself and focus on your goals and tasks regularly.

Legal Protection and Taxes

Many entrepreneurs when they are starting up, find it very challenging understanding three of the most crucial legal requirements. The first requirement is how the business should be structured when being incorporated. The second one is the permits and licenses that the city, county, state, and country where the company will be located require (Gordon, 2012). The last requirement is the protection that the business needs in regards to copyrights, trademarks, and patents. For a new business owner to comprehend how the company is incorporated one can choose to research about it or have an attorney explain everything that involves integrating. A lawyer will point one to the right direction in what type of taxation is required and what liability protection is best for your business (Gordon, 2012). For the permits and licensing, one can contact the office of the city, county, and the local Secretary of State to know what one should have. Making a decision regarding trademarks, patents, and copyrights for a business stands as one of the most challenging tasks faced by entrepreneurs. Close to all lawyers are cautious in regards to this matter and often advice for fuller protection. The entrepreneur holds the final decision on how and what should be protected in their business.

Conclusion

A lot has been explained on how to overcome the many challenges that are faced by entrepreneurs. The best weapon that an entrepreneur has is perseverance and intelligence which they should use to their advantage as they put efforts to achieve their goals. It is important for the new business owners to understand that they are not the first and only ones who are struggling; every entrepreneur at one point as they started went through a phase of struggles. Resources have been made available that aid entrepreneurs in getting through their darkest times so that they are capable of achieving substantial rewards which are the end result of developing a business that is successful.

References

Gordon-Davis, L. (2012). Legal Issues for Entrepreneurs. Juta and Company Ltd.

Hiduke, G. (2013). Small Business: An Entrepreneur’s Business Plan. Cengage Learning.

Taylor, E. W. (2016). The Elite Entrepreneur: How to Master the 7 Phases of Growth & Take Your Business from Pennies to Billions. BenBella Books, Inc.