Even as a weathered entrepreneur, there are a variety of challenges that all business people will have to face when starting up their business. These challenges however are particularly exaggerated for first-time entrepreneurs who do not have the experience of veteran business founders. Starting from scratch can be a difficult and unpredictable process, especially if you have no experience in establishing a business. In this blog, we will explore some of the major challenges that entrepreneurs face when starting a business.
Raising enough capital for your business start-up
This is easily one of the most fundamental aspects of starting a new business. Raising enough capital to cover your initial overheads in addition to ensuring you have enough to fall back on as your business gets off the ground. For tried and tested entrepreneurs, even if they ran a business which subsequently went under, they have already established a wide network of potential investors should they seek to start another project.
New entrepreneurs who do not have such experience do not have these connections. It is incredibly important therefore to begin networking - to build up your contacts list. This, however, could be the first of several hurdles. Networking may get you in the room with investors, but you then are tasked with convincing them about the feasibility and success of your vision. Creating a thorough business plan will help convince investors of both of these elements, and will help to secure the capital you need. Otherwise you may be forced to juggle a full-time job whilst your business gets going on the side, just to maintain a regular cash flow, which will not provide you with the focus you need to give everything to your vision.
The importance of decision making in business
Decision making is another important challenge that many new entrepreneurs may be unprepared for. As the founder of a business, it is your responsibility to make the important decisions to maintain your business’s success. These decisions are wide ranging, from choosing the best candidates for your team all the way through to making decisions on how to stay ahead of the competition.
Constant decision making can be draining, so it is important that you build a team around you which provides adequate support for your business. If something was to happen to you, would your business continue to operate and generate income? In addition, as the founder, the onus is on you to come up with creative solutions to business problems. This can be a lot of pressure for entrepreneurs who have no previous experience of such responsibility, as it differs greatly to a management role.
Dealing with the uncertainty of starting up your business
For almost all entrepreneurs, the uncertainty which starting a business poses is a serious challenge to tackle, and will put off many potential business people. There are a vast variety of concerns which you can be posed with: from doubts about your business’s profitability, to its success in a competitive market, to unexpected law suits, or the unexpected resignation of staff. These concerns cast a serious cloud of the unknown over your business’s vision.
One of the best ways to try and negate the fear of the unknown is putting together a comprehensive business plan. Although unpredictability is part and parcel of business, a business plan will help you to prepare for some of the unwanted circumstances which can occur as the founder of a new business.
If you would like help with putting together your business plan, get in touch today! Contact us online using the form on the right or call 01604 420 420.