Being an entrepreneur can be incredibly rewarding. At the same time, there are challenges of starting a business that every entrepreneur faces. No matter how much we plan, unexpected things happen. One of the many entrepreneur challenges is to expect the unexpected and to find a solution to move forward. Keep reading to learn about common problems entrepreneurs face and how to overcome them.
Getting Into Entrepreneurship
If you haven’t already given yourself a pat on the back for starting your own business, go ahead and do that now. This is a big decision, and one you should be proud of. Entrepreneurship comes with flexibility, creative control, and a sense of freedom. It can be a rewarding career path that allows you to embark on work that you truly love and enjoy doing.
On the flip side, part of being a business owner involves understanding some of the issues in entrepreneurship. You’ll undoubtedly encounter various obstacles throughout your journey. Every business owner deals with setbacks and hurdles at some point in their career. Without a boss over you to report to, the weight of responsibilities falls on your shoulders. But don’t worry, we know you can handle it. So, what are challenges that you can expect? We’ve narrowed down some of the most common issues and solutions to prepare you for your entrepreneurial journey.
Top 8 Most Common Entrepreneur Challenges
Starting your own business is an exciting endeavor. To ensure a successful and smooth experience, keep these challenges in mind so you know how to overcome them.
1. Finding the right idea
Before your business can take off, you need to have a viable, profitable business plan. This starts with your idea. Does your business offer something of value? Is there a target market for your business? Many beginners struggle with creating a business that can be sustained years down the line. Focus on the product or service you’ll offer and how it can solve a problem for your target audience.
2. Lack of funding
As a business owner, you take on the financial responsibility needed to successfully run your business. Small business owners often begin as solopreneurs, who handle all the work themselves and don’t have a need to hire employees or outsource their work—at least not yet. If your goals involve hiring a team or expanding offices and locations, you’ll need some way to secure funding in order to grow.
3. Hiring and managing employees
Assuming you have the financial resources to hire and manage a team, the next hurdle comes with finding the right people to work with you. In the age of gig work, it may be easy to find low-cost employees or contractors, but will their work be the kind of quality you’re looking for? One of the problems entrepreneurs face is hiring top-talent employees who still fit within their budget.
4. Time management
Entrepreneurs often wear multiple hats, especially during the beginning stages of their business. From the moment the decision is made to start your business, to your launch, to actually running your business, you’re constantly involved in the process. It can be more time-consuming than expected, and many entrepreneurs run the risk of burnout. Finding a healthy balance between their work and personal lives can be a challenge.
5. Marketing and sales
As with every other aspect of your business, you’re now in charge of promotion and marketing. You need to get the word out about your services or products so customers know what you offer and how to find you. A lot of time and strategy go into developing a successful marketing plan. For people who aren’t experienced in marketing or sales, this aspect of being an entrepreneur can feel daunting and intimidating.
6. Competition
Due to the sheer amount of businesses that exist today, many industries are oversaturated with people trying to establish themselves as experts in their field. Whatever type of business you decide on, it’s important to realize the competition you’ll be faced with. As the industry grows and inevitably changes, so will your competition and your strategy to stand out among the crowd.
7. Adapting to change
Part of the growth challenges as a business owner is the ability to adapt to changes within your industry or field. These changes can come in the form of a shift in market conditions, technological advancements, and customer needs. Entrepreneurs need to be mindful of industry trends and anticipate the change in order to remain competitive.
8. Managing finance
Unless you have a background in finance, many small business owners aren’t familiar with managing finances and cash flow. It’s a challenging aspect of being an entrepreneur, as keeping track of your budget and profitability isn’t an easy task. Without the proper knowledge or guidance on how to manage your finances, you run the risk of doing harm to your business’s finances.
How To Overcome Difficulties: Main Tips
Now that you’re familiar with some of the most common entrepreneur challenges business owners face, here are a few tips to help you navigate through these obstacles.
Research and planning
The best way to prepare yourself is to do your research before launching your business. As excited as you may be to start your business, creating a solid business plan will help guide you throughout your journey. You want to go into this endeavor feeling confident and secure in your marketing strategy.
Identify your priorities, potential pain points, and brainstorm ways to overcome these challenges. It’s a good idea to come up with a Plan B, maybe even a Plan C, just in case you need it. You never know what kind of situations you may encounter with your business. This is where problem-solving can come in handy and help get you through these hurdles.
Seek funding and support
Many entrepreneurs assume they have to foot the bill for their business completely on their own. For many, this might be your only option as you’re starting out. But know that there are other ways to obtain funding and support to help your business grow.
Consider applying for loans or grants to help get your business off the ground. Another option is to connect with your community and host a crowdfunding event or ask for donations. You’ll be surprised how many people are in your corner who want to support you. You can also look into participating in an incubator program, where you often receive funding, mentorship, and networking support during the early stages of your business.
Build a strong team
The best business owners and CEOs are pivotal leaders in their industry. They recognize the value of hiring top-talent employees and invest time and money into their training and development. Cultivating a team that shares your vision for your business is an integral part of being a successful business owner. Take the time to recruit the best possible candidates for your team. These are the people who will represent your company and support you in your success.
Prioritize and delegate
Part of being a good leader in the workplace is the ability to prioritize work and know when to share the responsibility of getting it done. Even though you may feel comfortable doing all the work yourself, your team is there to support you.
As your business continues to grow, you’ll find more tasks and responsibilities to share. In order to maximize your time and work efficiently, allow yourself to delegate work to other people on your team. This can also help you maintain a healthy balance between your work and personal life.
Develop and strong brand and marketing strategy
By now we know that brand voice and a strong marketing strategy are essential elements of building a business. No matter your service or product, consumers want to connect with the brand and the person behind the brand. Create your own unique brand identity that showcases your place in the market that will help you stand out.
Embrace change and innovation
Every industry goes through waves of change, so it’s important to stay up to date with the latest trends and developments in technology. As business owners, it’s our responsibility to evolve with the times. It might be scary, and it may mean investing more time and effort into these changes, but they’ll be worth it so long as you remain relevant to your audience.
Find the Right Platform For You!
Being a business owner can be truly rewarding and lead to many wonderful opportunities in your career. Will it be tough? Yes. Will it require time, some research, and a bit of planning? You bet. Do you have to do it alone? Absolutely not. Practice is your one-stop-shop CRM (customer relationship management) software to run your small business. You can manage your clients, accept payments, and you can even message your clients easily and effortlessly through our platform.
For those entrepreneurs who need a bit more customization, our Pro Plan is for you. Add a custom domain, include your own branding, plus add digital signatures into your workflow. Don’t forget our integration ability to connect Practice to all your other tools for seamless automation. Run your business with Practice for the stress-free client management system you’ve been looking for.
