The decision to start a business is not and should not be an easy one. Being a business owner brings a lot of benefits, but, at the same time, a lot of responsibility. Before putting your money on the line you need to be certain you are ready to surpass the obstacles today’s market will throw at you. Here are some of the most common obstacles an entrepreneur encounters.
1. Wrong Partners and Employees
Most times, when you start a business, it may be a good idea to bring in a partner. The initial impact the business will have on your budget will be softened, you will have someone close to share your thoughts and ideas with, and you will only carry half the responsibility on your shoulders. How this partner is chosen should be taken very seriously.
You need to decide who would best complement your company’s needs. If you are a stellar manager yourself, you can afford to bring someone in with less knowledge, but more heart and a desire to make your business go as high as it can. But if you are the one who inspires people and shares their ideas and dreams, motivates them to overcome challenges and propels the business forward, you should find someone who can make sense of all the legal, financial, and managerial terms of your contracts.
The same amount of attention should be given to the recruiting process. Filling your vacancies with qualified industry professionals is a must when it comes to building a successful business and for this purpose nothing is more important than posting suitable job descriptions. Your listings should be made as detailed as possible and include all the competencies and experience required for the specified position.
2.Lack of a Constant Pool of Clients
Another obstacle a new business may encounter is the lack of stability. In a business that focuses for example on selling energy efficient electric fireplaces, this idea translates into a lack of constant clients. If you don’t focus your efforts on recognizing, snatching and keeping a valuable client, through a contract which can bring steady revenue, you will always have to worry what comes next month and whether you will be able to sell enough to stay afloat.
The worst part is that your employees will be wondering the same thing. Not knowing whether they will have a job or not in the next few months lose you the trust people placed in you and convince some to jump ship and go with a company that has a better chance of staying afloat.
Sure, having started a new company and, even more, becoming successful, can be a rush. Getting overexcited and opening your pockets to frugality and reckless investment can topple that high tower you’ve been building and get you right back down to earth.
Be mindful of all your expenses throughout the process of developing your business and think hard before you make a heavy investment. Sure, you must compensate your employees when they do a good job, either through incentives, paid vacations, or salary increases, but overdoing puts pressure on your budget and, more importantly, creates a trend you may not be able to sustain in the future.
4. Not abandoning failed projects
Throughout its history, your business will have both successful and failed projects. One obstacle many businesses struggle with is recognizing when to abandon the latter. Whether it’s because of emotional implication or simply bad business management, new companies can find their end pursuing an idea which should have been scrapped a long time ago.
Do a thorough market analysis before launching a new campaign or developing a new product, to be as certain as possible you will be successful with it. Use social media to survey people and get information directly from your customers and, when, despite all your efforts, the product you have created is simply not compatible with the market, acknowledge and accept your failure, learn from it and move on.
Hopefully, this will give you an idea about the hurdles you may have to jump if you’ve just decided to start, or what could come next if you’ve already started down the road to that 7-digit business.