Top 7 Common Challenges Faced by a New Entrepreneur

Becoming an entrepreneur is not an easy task. You will have to go through many struggles and challenges before you can get your business running. You will be taking on a journey that is unknown to others, and you will be doing something that no one has done before. You will be an explorer, and while the risk of failure is high, therefore, the potential for success.

In this blog, we look at the journey that we took from being a marketing manager at a large corporation to starting our own business. Hopefully, you will be able to learn from your mistakes and avoid making them yourself. You will also be able to understand the challenges that an entrepreneur goes through.

1. Leaving your job to become an entrepreneur

It is not for everyone to leave their well-paying career and take on the challenge of going into new territory. As an entrepreneur, this could be one of the most challenging decisions you’ll have to make.

Some entrepreneurs combine their tiny enterprises with their regular, well-paying careers. They may be required to work late at night and on weekends. However, if you want your business to expand significantly, you’ll need to quit your job and devote 100% of your time to it.

However, abandoning a well-established career is difficult, mainly when your future is uncertain. Unfortunately, you will be the only one who can make this decision; my advice is to trust your intuition and make informed selections.

2. Getting funds for your business as an entrepreneur

The first obstacle that any entrepreneur has is raising capital for their venture. A skilled entrepreneur will find it very simple to raise funds and recruit investors for a new venture.

If you have a tech-related idea, you may have an easier time getting venture capitalists or angel investors. As more and more businesses pursue that route, attracting an investor is becoming more difficult. So, what are your options for getting your company off the ground?

The following are the five other frequent funding choices for your business:

Bootstrapping for as long as possible
Funds from family and friends
Crowdfunding platforms
A loan from the government
Funds from accelerators

Even if you can raise capital for your company, you are still exposed to risk. The first several months of your business can be difficult. There’s a chance you won’t make any money, and there’s also a chance you’ll spend more than what you have planned.

If you don’t have backup financial support in this situation, all of your efforts to start the business will be for nothing, and you’ll be left with a debt to pay.

3. Financial & cash flow management

While you may have some money set aside to start a business, they don’t last long, and you can’t count on the next sales check to cover the rent and stay on top with the next step along the way.

Small businesses need a consistent flow of revenue to survive, and you should always keep extra cash on hand to cover rainy days and in-between days.

What you can do is carefully organise your budget so that there are no delays in invoicing and that you have ample time between receiving funds, processing the invoice, and paying your employees’ salaries (including your own).

4. Hiring new employees and building a team

We’ve all had interviews at some point in our lives, and for many of us, it’s been one of the most stressful experiences of our life.

The fact that you’re doing it as a first-time entrepreneur adds to the stress, as you want to find the ideal applicant who not only fits your budget but is also skilled at the work they’ll be doing.

Picking the right combination team for a company is similarly stressful. You have no idea how the team will operate together, even if the candidates are qualified on paper and efficient working alone.

As a result, you should be selective and look beyond resumes and job criteria. When posting job requirements, be precise about what you’re seeking, as well as the budget and benefits you’re asking for.

Make sure to specify what qualifications candidates must possess and the job responsibilities and hours and days they will be working.

It will help you save a lot of time because people who apply will be aware of the budget and responsibilities.

5. Effective Time Management

Entrepreneurs that wear several (and sometimes all) hats may have the most difficulty managing their time. You could accomplish so much more if you just had more time!

Make time for it. It doesn’t grow on trees like money, so you have to be careful with how you use it.

Here are some ideas:

Make goal lists: You should have a list of lifetime goals. You should split them into annual goals, monthly goals, and weekly goals. Your weekly goals will then be divided down into day-by-day chores. In this way, all you have to do on any given day is complete the tasks on your task list to stay on track with your long-term objectives.

Remove any tasks that do not align with your objectives.

Delegate any duties that do not require your immediate attention.

Ask yourself, “Is what I’m doing right now the absolute best use of my time?” regularly.

6. Marketing and finding customers for your business

After establishing your company and having a product or service to sell, the next step is to promote it effectively. Marketing plays a critical role in a company’s success. Proper marketing may make your firm a success overnight, while improper marketing can wreck your company’s reputation.

Marketing enables you to find and attract the ideal customers. Your company is worthless if you don’t have any customers. As a result, as an entrepreneur, you will have to make a critical decision. You’ll need to decide on a platform and marketing tactics for your product. Furthermore, you will be in charge of determining the marketing budget.

To promote your items, you can either hire a professional or develop your own marketing team.

7. Business Growth

You’ve reached a point when your current structure won’t allow you to take on any more work. Create new processes that focus on work delegation as a solution. Many entrepreneurs who are used to carrying multiple hats find themselves in this situation after achieving some level of success. Your growth slows down when you reach a self-imposed barrier because you’re doing everything. The only way to break through is to delegate responsibilities to others, which will allow you to move away from production and into management and, eventually, full ownership.

Legally Forming an LLC

While LLCs are one of the most popular types of businesses to form and it comes with a plethora of benefits relating to privacy and flexibility, there is still a list of laws and regulations that need to be taken into account when establishing one in Texas. Click here to learn about the details of the Texas LLC laws and all of the requirements during the formation process.

Conclusion

An entrepreneur starts from the ground up and works on a brand new company that no one else has ever worked on. As a result, it is usual to face obstacles from time to time. However, if you are mentally prepared to face the challenges, you will find it easier to bear the stress that comes with being an entrepreneur.

Recognize that you are not alone in your struggles. Your allies are; dedicated and intelligent. Utilise them to your advantage to keep working toward your objectives. As a result, there are numerous resources available to assist you in getting through your darkest days as an entrepreneur so that you can realise the tremendous benefits of running your own successful company.