Guest Blog Post By: Ashley Wilson

Owning and running your own business seems like an exciting idea.

After all, what could be better for an avid gardener then starting a gardening company where you can make a living doing something that you love? Or how about a budding chef setting up a restaurant, where they can sell their delicious creations to happy consumers?

challenges entrepreneurs
Picture Source: Pixabay

Creating your own business gives you the opportunity to follow your dreams and passions. It’s not without its challenges, however.

To be an entrepreneur, you need to deal with living a life of uncertainty and risk.

The late co-founder and CEO of Apple, Steve Jobs, once famously said that entrepreneurs are separated from other people by “pure perseverance”. Making yourself aware of some of the challenges that you’re bound to face as an entrepreneur also means that you can prepare for what lies ahead.

Here are 5 of the most common challenges that entrepreneurs will need to overcome.

#1 Dealing with the Legal Side of Things

When you launch a new business, you want to focus on bringing your vision to life. That means experimenting with products, services, and branding.

It’s easy for things like figuring out what the legal entity should be for your new cleaning business to fall to the wayside. However, it’s stuff like that which can be crucial to your company’s successful growth.

Remember, there are several different kinds of business structures to choose from, including sole proprietorships, limited liability and more.

Each business structure comes with its own regulations and tax requirements and poises different opportunities and setbacks for the future.

Choosing the right solution for your needs means thinking carefully about what kind of growth you expect your business to have in the years to come. If you’re not sure what kind of legal entity is right for your brand, speak to a professional accountant or business advisor.

#2 Managing the Costs

Cash flow and budget management will always be among the biggest concerns of any business owner.

When you’re first starting your new company, you need to figure out where you’re going to get the capital that you need to get your organization off the ground.

Once your new entity is up and running,  you need a way of making sure that everything continues to run smoothly.

Start by making sure that you have a proper budgeting strategy in place. Ensure you know how much money you need to make each month to pay for your company’s crucial expenses.

Once you’ve got your budget sorted out, you can begin to think about things like invoicing tools and accounting software that will help you to keep track of the money that you have coming in and going out each day.

The more you know about your cash flow, the easier it will be for you to decide whether you can afford to invest in new opportunities when they arise for your emerging brand. You can even put strategies in place to keep yourself well-protected, like requiring a down payment on all of your invoices before you start any work.

#3 Hiring and Team Building

As your business begins to grow, there will only be so much that you can reasonably do on your own. Eventually, you’re going to need some help.

Sometimes, you might invest in contractors and freelancers who can help with things that you can’t master yourself.

For instance, you might hire a graphic designer and developer to build your website, or a virtual assistant to carry out tasks for you.

The digital world has opened up a range of new ways to bring extra assistance to your team.

In other circumstances, you might stick to traditional hiring.

Either way, you’re going to need to think carefully about how you’re going to search for the right candidates, filter through your options and onboard the people that you choose.

Think about what kind of hours your candidates will need to work, what they’re going to be paid, and how you’re going to encourage your team members to stick with you in the long-haul.

#4 Sales and Marketing

Building a business is just the first part of developing a successful entity in today’s world.

You’re also going to need to think about how you can bring as many customers to your company as possible.

Marketing strategies can help with that.

For instance, you might decide to build a social media campaign that allows you to instantly connect with your target audience and answer their questions online.

You might also use content marketing to gather organic traffic for your website through search engines.

If you’re not much of a marketing expert yourself, then you might need to think about investing in tools that will help to improve your chances of success.

Outsourcing your marketing strategy to a professional might seem like an extra expense, to begin with, but it could mean that you bring more customers to your door too. Similarly, having more people on your sales team to manage things like order fulfillment and customer service could boost your ability to earn long-term profits.

#5 Investing in Equipment

Finally, even if you’re just running a small business from the comfort of your own home, you’re still going to need to invest in essential equipment.

Every business has tools that it relies on to continue running smoothly. A cleaner needs their cleaning sprays, a gardener needs a lawn mower and a web designer needs a computer.

One of the most common pieces of equipment that you’ll need in today’s highly digital world is a computer that you can rely on to help you connect with clients, complete invoices, and manage information. Rather than just buying a new computer every couple of years when your initial investment starts to lose its luster, learn how to keep your tech running effectively and commit yourself to maintain the equipment you have. This will save you a fortune in depreciation.

Ready to Start?

Becoming an entrepreneur can be a complex and daunting experience.

However, if you know how to jump into the world of business ownership the right way, you could find that the rewards are astronomical.

Be aware of the five challenges that we mentioned above and how you can overcome them, and you’ll already be one step ahead of the competition.

More About The Author

Ashley Wilson is a content creator, writing about business and tech. She has been known to reference movies in casual conversation and enjoys baking homemade treats for her husband and their two felines, Lady and Gaga. You can get in touch with Ashley via Twitter.

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