Starting a new business is not an easy feat. An entrepreneur must encounter and successfully weather different kinds of challenges that accompany the prospect of starting a business. Careful consideration of each challenge and obstacle allows entrepreneurs to come up with viable long-term solutions to guarantee entrepreneurial success. Here’s an overview of the most common obstacles of starting a new business and how new entrepreneurs can counter them.
Startup capital is the first major challenge that every new entrepreneur faces. Depending on the idea conceived, the amount of startup capital required to establish a business successfully may vary.
Part of the solution to this challenge requires an entrepreneur to think of the various sources of business startup capital, such as obtaining a small business loan from a financial institution or government agency. Other viable solutions to this challenge include funding through personal savings or disposing of an asset to get the necessary capital. Fundraising is also an option; digital resources such as Kickstarter, a site dedicated to obtaining funds for creative project, can help garner interest as well as financing.
New entrepreneurs must learn the art of balancing between personal tasks and work-related responsibilities. Maintaining a healthy work-life balance is a major challenge as most entrepreneurs tend to overwork themselves, resulting in fatigue. First-time entrepreneurs are especially prone to burnout as they may feel obligated to devote themselves to their business, but this tendency can have adverse effects over time.
To effectively resolve this problem, the entrepreneur should establish a daily routine and try as much as possible to stick to an 8-hour day in the office for at least 5 days a week. Proper planning should be done on the onset of each day to ensure that each hour of the day is meaningfully utilized in the performance of business-related tasks.
As a business grows, the entrepreneur may need to hire workers to help with different responsibilities. This may pose a logistical nightmare, especially when it comes to creating a good job description accompanied by suitable responsibilities, requirements, and salaries. Coming up with a perfect balance between these 3 areas is a major hurdle for a first-time entrepreneur. If the position is not appealing to potential employees, there will be a limited number of applicants. If the position pays too much for the work, this employee could negatively impact the business’ profits.
Part of the solution to this challenge entails enlisting the services of an external hiring agency or professional. If this proves costly, the entrepreneur may also want to sample out similar job descriptions listed by similar-sized businesses to get an idea of how to frame the job descriptions as well as the required skills and professional competencies. In the actual hiring process, the entrepreneur should look for workers with motivation and innovative ideas on how to progress the business.
Entrepreneurs will often be the first ones to say that though the work can be challenging, it is more often rewarding. Learning to overcome the obstacles that often accompany a startup is part of the entrepreneurial journey.