9 Challenges to Overcome When Starting Your Own Business
You’re an entrepreneur… a creator… a business owner. Which has a huge upside. When you start a business, it can be so incredibly rewarding.
But also throws challenges your way…Pitfalls you must avoid on your way to business growth.
Starting a business comes with its fair share of challenges, and after launching my own ventures and investing in 47 companies over the years, I’ve identified nine key obstacles every entrepreneur needs to overcome.
In this blog, I’m sharing these challenges with you to help you be prepared and avoid being blindsided as you start a business. Let’s dive in and get you ready to tackle these hurdles head-on.
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1: Belief
One of the biggest challenges when starting a small business is overcoming self-doubt. If you have even the slightest hesitation about your business’s potential for success, you’re already facing a major obstacle.
Confidence is key when you decide to start a business. Without it, hesitation will set in, and inaction will follow. Before moving forward with your plans, make sure to tackle any uncertainties head-on. Trust in your vision, believe in your business’s viability, and you’ll be ready to take on the challenges of building a successful business.
2: Getting the Right People on Board and in Alignment
When you start a business, one of the biggest challenges you’ll face is building the right team. You’ve got two options: recruit people you don’t know and convince them to join your cause, or team up with people you already know and trust, placing them in roles that align with your vision.
I’m a huge believer that when starting a small business, working with people who are in alignment with your goals is absolutely key. If those team members need training to master their roles, get them the resources and exposure they need. But above all, trust them, and make sure they’re 100% on board with your vision.
3: Get Your Story Straight
When you're ready to start a business, understanding the challenges when starting a small business is key to overcoming obstacles and setting yourself up for success. To make sure you're on the right track, you need clear, measurable answers to a few essential questions:
- What do we do?
- How are we different?
- Who are we for?
- Who are we NOT for?
- What unique benefits do we provide?
4: Capital to Grow
One of the biggest challenges when starting a small business is securing enough cash to fuel growth. Without sufficient funding, you're at risk of being outpaced by competitors.
Here’s the thing: Cash is cheap, but selling stock can cost you a lot more in the long run. My advice? Consider a business loan or a home equity line of credit to give you the financial flexibility you need while keeping full ownership of your business. By doing this, you’ll be better equipped to navigate the challenges of starting a business and set yourself up for long-term success.
5: A Scalable Sales Process
Without growth, business isn’t fun.
That’s why you need to be constantly thinking about how to attract more customers and growing your business.
One of the biggest challenges when starting a small business is figuring out how to solve problems for your customers in a way that sets you apart. The way you communicate this solution is what drives business growth.
When you start a business, attracting customers should always be top of mind. Make it a priority to take out time in your schedule to focus on this.
If you don’t, you risk your business getting stuck in neutral, feeling more like a grind than a growth opportunity. So, stay proactive about growth initiatives or watch your business stall.
6: Understand the Time Commitment Required
Starting a business comes with big challenges, and you’ve got to be ready for them. When you start a business, it's not just about doing the work...it’s about building the foundation, often requiring five years of grinding six to seven days a week.
You'll be working in the business and on the business, making it a major commitment. And let’s be clear...these challenges when starting a small business don’t just affect you; they affect everyone in your life.
Make sure you and your loved ones are on the same page, with full support. Without this understanding, you risk straining your most important relationships.
So, have those tough conversations upfront and ensure everyone knows your time and focus will be dedicated to making the business a success.
7: Discipline!
In theory, owning a business is so fun and freeing! You’re in charge, you get to do what you want, blah blah blah…
The reality is a much different picture. All those “napkin plans” you drew up don’t cut it in the real world. You need an actual plan. With lots of specific details! And then you need one more thing: The discipline to actually follow it.
Those who have the discipline to continually execute their plans are those who will succeed. Those who lack that discipline will get stuck, get distracted, get off course… and will fail.
8: Make Decisions Based on Data
When facing the challenges when starting a small business, don’t let intuition or emotion drive your decisions. Instead, keep track of everything and constantly scoreboard your data.
Continuously ask yourself: What do the numbers show us? In business, success comes from making quantitative decisions, not relying on qualitative judgment.
To effectively start a business and overcome these early obstacles, trust your business intelligence and let the numbers guide you, not your emotions.
9: Create a Culture of Testing
Imagine yourself three years into your journey to start a business. Things are going well, but suddenly, there’s a shift in the marketplace. A disruption.
How will you handle it? Will you stick to your original plan, or will you embrace change and adapt with the market? The challenges when starting a small business can be unpredictable, and those who refuse to evolve won’t last long in today’s fast-moving world.
This is where the power of testing comes in. I encourage you to foster a culture of testing in your business...constantly experimenting and adjusting based on what works. Whether it’s marketing strategies, customer service, or client follow-ups, create A/B tests for as many areas of your business as possible.
The more you test and refine, the better equipped you'll be to face the challenges when starting a small business and achieve long-term success. Adaptation is key to growth and prosperity!
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