Entrepreneurship is not without its challenges. While rewarding, there are also many unforeseen challenges that many don’t think about upfront. Regardless of how long you’ve been in the business, it’s a challenge to build a brand, adapt to meet or exceed the competition and maintain a profitable business.
For young entrepreneurs, however, there are unique challenges that can be difficult to overcome. These five obstacles are important to overcome if you are just starting out in the business world or if you plan on becoming an entrepreneur.
1. Resigning from Another Job
It’s almost impossible to manage two careers if you are going to devote your efforts to building and maintaining a successful business. While you might be able to manage your business’s infancy on your weekends and weeknights, if you want to see it grow, you will need to leave your job.
In August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More
It’s scary to leave a stable, long-term business opportunity in favor of something unpredictable. This is especially true if you have never owned a business. There is no simple way to deal with this. Be logical in your decision-making and listen to your gut instincts.
Although it is not always easy for experienced entrepreneurs to finance a new venture, they have some advantages. They may have the capital or steady income from an existing business that they can use to finance a new venture.
Even if the first business failed, investors and clients will likely have made connections to help them get a foothold in a new venture. You’ll be starting from scratch as a new entrepreneur. This means that you will need to network like mad and think through all possible funding options.
Not only is it difficult to finance the actual business, but getting financing for a house, car, or even a credit card can be extremely difficult. Many new entrepreneurs use financing options such as a Non-qualified mortgage in order to utilize its many benefits and lessen the need for other loans and financing.
This can be especially difficult if you’ve never managed or run a team before. However, even if your experience in management is a plus, it can be stressful and challenging to pick the right team for a startup. It is not enough to just find the right candidates for certain roles. You also have to consider their cost to your business, their culture fit, and how they will work with you as part of your team. These considerations can be extremely difficult when you are under pressure to fill those positions quickly.
4. Being ok Spending Time Alone
This is a common problem in entrepreneurship. Many new business owners don’t realize it until it happens. Entrepreneurship is lonely. You will be the only person in your company to start out with, and you won’t have any other people to depend on. Your family won’t be able to see you as much because you’ll work long hours.
5. Making Decisions
This is the most difficult challenge on the list, and it’s not surprising. Entrepreneurs are required to make hundreds upon hundreds of decisions every day. These can be big and company-impacting or small, but they all have to be made. Decision fatigue is a real problem and new entrepreneurs will feel it if they don’t prepare for the increased stress.
These obstacles can be overcome and you will soon be able to establish yourself as an entrepreneur. They will continue to nag you over the years, and new challenges may arise, but you will be able to manage yourself in the most volatile and important first few months. This puts you well ahead of your competition.