Many people are fascinated by the influence of entrepreneurship. But when they decide to focus on business then lack of money becomes a major challenge to hold them back and they find their business is not always pleasant. You will need to do a lot of walking work before you can even start your business. You will decide if you will set up your business on the side of your day job or enter another schedule! And, you will need to know which business structure is best for your business. Then, once established, becoming an entrepreneur is fraught with obstacles almost daily. Let's take a look at some of the major challenges you may face as an entrepreneur, as well as some solutions to prevent them before they even happen - or face them while doing business already.
We will identify the challenges that business owners face under 4 different umbrellas:
Mental Barriers,
Money Challenges,
Business Problems, and
Life Challenges.
1. Intellectual or mental Barriers to entrepreneurship.
(i) Lack of vision.
If you enter the business quickly or simply by rushing under the best conditions of employment, you will have no clear purpose or vision for your business and you will not move forward for long. This lack of vision will make it harder for you to formulate and hold a strategy. Without a well-defined strategy, your business decisions will be shattered. In the end, your business will probably fail because it will not attract potential customers.
Fix
Find out why you become an entrepreneur. Focus on the goal and face the challenge instead of running away from the challenge. With this vision in mind, plan your business plan and make your decisions according to that plan.
Being an entrepreneur involves a lot of uncertainty about what to look for in a business environment. You will be dealing with a general state of uncertainty about the chances of your business succeeding. You will also face many unforeseen occurrences which may even put you in a difficult situation. Will your customers pay their invoices on time? Visitors to the site will love your new colour scheme? Can you trust your new business partner? Will you be successful in repaying your business loan? The list of questions is endless and can be overwhelming.
Fix.
Acknowledge the fact that uncertainty is a natural part of entrepreneurship (and life), but realize that you can take steps to reduce those risks. Work hard, make emergency plans, and focus on business insurance to protect your business. Then make sure you have done everything you can and keep your focus on growing your business.
(iii) Tolerance of insecurity.
Being an entrepreneur requires courage and confidence in yourself. However, even if you are generally self-confident, you can sometimes tolerate insecurity. Doubt can leave you wondering if you are really capable. Lack of self-confidence has the potential to completely remove you from your business because you will not trust every step you take.
Fix.
Regularly review your achievements and progress. Read testimonials from customers praising you and your business this will strengthen you and make you more confident. Ignore those negative sounds in your head, and accept the fact that you are capable of achieving your goals.
(iv) A desire for immediate success.
As an entrepreneur trying to implement his vision, it is natural for him to feel a sense of urgency. However, if he is not careful, that sense of urgency could eventually lead to disaster. Lack of patience can be seen as abandoning a good business strategy too early because it did not bring immediate results. Or it may cause unproductive fatigue because you are working too hard. In any case, your impatience can mean the end of your business.
Fix.
Understand that building a business takes time. Try to enjoy the process instead of fighting it, if you want quick cash-generating events, they can destroy your ambitious passion for running your business. And, realize that steady, growing growth is a blessing.
(v) Overcoming analytical paralysis.
As an entrepreneur, you have been given the responsibility to make many choices - some important and some not so important. Naturally, you always want to make the best decision for your business. But with the sheer number of options available, it is much easier to allow decisions to take up all your time and drop you into a loss. When this happens, you suffer from analytical paralysis and you spend a lot of time thinking without taking any action. You become less of an entrepreneur, and your business results will show the opposite of your desire. That will not give you a successful experience as you will be wasting a lot of time without the results.
Fix.
When you see this happen, sit down and evaluate the decision you are trying to make. If it is a small decision, just do it. If it is an important decision, decide what information you still need and offer to choose when you have that information. Remember, in most cases, you can change your mind later if the pros or cons, thus becoming more realistic.
2. The Financial Challenges of Becoming an Entrepreneur.
(I) Lack of capital.
It takes money to start and grow a business. And, sometimes, it takes a lot of capital to achieve the goals that will grow your business. If you lack the required capital, you are stuck meaning you cannot launch your business or you cannot take it to the next level.
Before you do anything else, create a clear business plan that includes the estimated funding requirements. Next, identify some possible sources of funding to be sure to meet your goals. Money can come from your own money, loans or gifts from loved ones, money raised through a platform like competition awards, money brought in by an investor or business partner, or loans from a bank. All in all, make sure you have capital that can meet (or exceed) your expected needs.
(ii) Lacking a permanent schedule of revenue (income).
When you become an employee with a consistent schedule, you know how much you will be paid. That's not in the entrepreneur. In a few months, you can do a lot of business. But, several months can be very few. This is especially true for seasonal businesses. Income that does not match the flow of money invested can make it very difficult for you to budget - for your business and personal life.
Fix.
It is possible to budget and flexible revenues. The most important thing to do is to save the money you earn during your good months. That extra money will help you to keep your balance during difficult times.
(iii) Separating business and personal finances.
When you own a brand new business, it's very easy to put your business and personal money into one account - especially if you are the sole owner. However, doing so can be a problem during taxation because it is difficult to say which costs are for business and which ones are your own so you will pay higher taxes as it reads in the account.
Fix.
Create clear boundaries between your personal and business finances. Having different bank accounts, payment cards, credit cards, etc. And use each account for its intended purpose.
(iv) Dealing with late payment.
Most of your customers will pay you on time. But, sooner or later, you will probably have to deal with delays or missing payments. Depending on how much they owe you, one late payment or missing payment may affect your cash flow and ruin your business.
Fix.
Let customers sign contracts that cover the terms of payment. Your payment terms should include provisions regarding late fees and specify your collection process. It would also be a good idea to have a lawyer wait if you can’t raise a lot of money.
3. Business Problems facing Entrepreneurs.
(I) Finding customers. To be successful, you need a consistent stream of paying customers. But finding them is not always easy. When your Customer network stops or changes, you may be wondering how to find more buyers for your product. This hinders the dreams of many entrepreneurs, the goals die when Customers move the market.
Fix.
Keep expanding your network. The new people you meet may become customers or, they may be able to bring other customers to you. You will also want to have a website (like this one for me) that customers can find for you and you will also be able to sell yourself on social networks so that more customers can find you more easily.
(ii) Lack of sales skills.
It's one thing to attract customers and it is quite another thing to get Customers and sell your products. When you do not have a sales background, you may be frustrated with the marketing process. And, if you don’t make enough sales, your business can’t move forward.
Fix.
The good news - is you can learn how to sell. Once you understand the psychology involved and practice overcoming common objections in the market and you will conclude many more deals that will give you productivity.Note: selling does not necessarily feel cunning. If your product or service can help a customer, you should sell it!
(iii) Wearing too many hats (having too many tasks at one time).
As an employee, your role was probably unified and well-defined. But, as an entrepreneur, you have to wear a lot of hats at the same time. You are responsible for marketing, maintenance, accounting, human resources, customer service, and more. Worrying about all these responsibilities can be very scary!
Fix.
As soon as you start, take a deep breath, and increase your pace. However, when you are financially secure, provide other resources for those jobs and also hire honest workers to help you. For example, if you have a serious problem with accounting, hire an accountant to do the job. Or, if you are very competitive in writing or image design, hire a freelancer.
(iv) Managing the team.
You can start your entrepreneurial journey on your own. But, over time, you may need to hire support to run your business. Managing a team adds another layer to your business. It needs a new set of skills and money to pay them, And, you are now responsible for the life of another person and the security of your Business. That responsibility can be overwhelming and can hinder the success of your business if you do it out of scheduled issues.
Fix.
Contact an employment expert/employment law attorney to learn about the legal principles and best practices of employers in your state. Read books, journals, publications, constitutions and different business Acts, these will give you more insight. Consider hiring freelancers as long as they are considered independent contractors instead of employees, you will have a few rules to deal with. In addition, when there are potential pitfalls, think about hiring family and friends. You already know them, and they will invest in you.
Having a successful business takes a lot of work and being an entrepreneur requires sustained passion. When you put these two together, you can make your work the only priority in your life. But, that would be a mistake, when you lack work-life balance, your relationships with people, relatives and friends will slow down, and you suffer and your health will suffer. You will become psychologically tortured and your work performance will become reduced,
Fix
Think back to why you started your business. Ask yourself, are you an entrepreneur? This will make you aware of yourself so that you can give a better life to the people you care about or have the freedom of the time that you so desperately want to achieve. When you work hard on a specific goal and give ample time to relatives, friends and family, you will ignore the pressures and distractions of life that could rob you of your true goals. Your family's idea of a better life includes spending time with them. And, there is no time to waste as you struggle all the time. So work hard and find time to relax and refresh back your attention.
Fix.
Set clear boundaries - and stick to them.Only work during certain hours. Your business phone and email box are prohibited at rest. Keep memories with your family and practise regular self-care with your family.
(ii) Feeling lonely or misunderstood.
As a business, you travel a lot and do different ways and those ways are often misunderstood by those who are not entrepreneurs. So when your loved ones “don't support you or don't associate with you,” you may feel very lonely. Uncontrolled loneliness can be fueled by resentment and frustration, which can ruin your life and your business.
Fix.
Make friends with other entrepreneurs. They may sympathize with you and support you in well-meaning ways, but an inexperienced family cannot. And remember, even though your loved ones may not understand what you are going through, they are rooting for you.
(iii) family turmoil.
If you are an entrepreneur, you will have to manage everything and look at it closely, even if you are hiring people, you will still have to be the chief inspector. And at the same time you are the head of your family (if you already have), these can draw you out of your normal psychology and even disrupt your business.
Fix.
The best advice is to avoid mixing family issues and business issues. Set boundaries and hire a professional business specialist to run your business distinguished from your family issues.
Conclusion.
Being an entrepreneur can make your biggest dreams come true but, it can also cause great chaos in your life and your business. Be careful and always put God first in your affairs and schedules. Maybe you are thinking about focusing on entrepreneurship at this time or you are probably already an entrepreneur with one or more businesses. In the test, those who have read the material provided in the examination are the ones who are most likely to pass the examination. The same goes for anything in life. Apart from these challenges now let's look generally at the challenges you may face as you get the idea of being an entrepreneur so that you can better prepare yourself to overcome them when you encounter them.
1. THE CHALLENGE OF ACCEPTING TO LEAVE A SALARY.
There is so much peace in the heart when you know that every 30th a few hundred thousand or several million shillings will settle in your salary account. For many, the paycheck makes you avoid financial trouble because you know that every day you will earn a certain amount. It is a condition that can be very easily overcome and can make a person afraid to give up when he or she decides to get into entrepreneurship full-time. You just have to be more discriminating with the help you render toward other people. Having savings will help you get rid of thoughts of financial problems if you have to quit a job to get into entrepreneurship full time.
2. THE CHALLENGE OF CAPITAL MANAGEMENT.
How you spend your capital can make your business successful or unsuccessful. If you use the capital for unnecessary use then your capital will run out quickly and, likely, your business will not last more than six months. But another thing to look for is that usually the things you thought would cost a certain amount might cost more. The bajaj you thought would cost you 6 million but requires insurance and other permits that will cost an extra 2 lakhs every year. The office you thought would cost you 5 lakhs a month but there is a sanitation fee of 30 thousand shillings every month. Making the right decisions about how to use your capital will meet with things like this will make you successful.
3. MANAGING BUSINESS ISSUES.
Above I have talked about managing capital but many other things can happen in your business. Things like one of your employees being late for work frequently, or maybe the bank is closed before you complete the necessary transactions and you even find that the products are less purchased while you thought that they would be sold quickly. There are so many types of business ventures that it can be a challenge. How you manage things in these challenges will either make you successful or unsuccessful. It is very important to have a calm mind to make the right decisions for your business.
4. LONELINESS.
As an entrepreneur, loneliness is one of the things you will encounter on your journey towards success and perhaps even success. The day will come when you will find that things are not going your way and you have no one to complain to. You may not be able to find relatives and friends because they told you not to get involved in entrepreneurship. So if you call them in that time of trouble you may seem desperate. Also many days you will find yourself in the office alone until midnight with no one to bring you even a piece of bread or no one to stop you from sleeping. There is no laughing matter with children, arguing with friends or having fun with your partner. It's just you and work. It is good to know this in advance because for many it makes them frustrated, especially if at the same time they are plagued by problems in their business as well.
5. THE CHALLENGE OF DOING MANY THINGS AT THE SAME TIME.
Especially as a start-up entrepreneur, there are times when you will have to be involved in doing a lot of things in your business. You could be the one selling things in your shop. You can also post your products on Instagram or Facebook. You could be the one to receive all the calls coming into your business. Before you start hiring people to help you then you will have a lot of responsibilities. The challenge lies in how to handle these responsibilities effectively so that your business can continue to grow. And this is where the importance of being ready to learn comes into play. You will not know everything so it is good to try to find those who know certain things to teach you. All of this is important to ensure your success.
6. LIFE CHANGE SYSTEM.
If your weekend schedule is plot then once you start entrepreneurship this will change. There are people whose schedule is that Thursday is the Ladies Night club, Friday and Saturday disco and then Sunday afternoon until 10:00 pm and the fans get one hot one cold while chatting here and there. Even if this isn't you one hundred per cent, it's good to realize that when you start entrepreneurship then most of your time will be spent in your business and not in comfort. You will have to start rejecting invitations to go eat ducks and snacks. You will need to spend your money on growing your business and not elsewhere. And often you will have to completely change your friends to have those who will not hold you back in your entrepreneurial journey. And this is where many hit the rock. They want success in entrepreneurship while remaining comfortable. The fact is, no one has ever been so successful. So it is good for you to decide what you want in your life, be it a duck or a success in entrepreneurship. If you are an entrepreneur then be prepared to change your lifestyle to achieve success.
I have used the word challenge in this article instead of intentional problems. I want to show you that you can overcome these things when they happen in your journey towards success. These are transitional things. When you encounter them then do not give up. Keep pushing until you reach your dreams.
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