Being your own boss, creating something from nothing can all be immensely rewarding but there are going to be some mighty challenges along the way, so here are some things to think about.
Here are 8 challenges that every entrepreneur is guaranteed to face during their career:
1. Lack of Funds
You will need investment and the deal you cut will be crucial to your future success. How many entrepreneurs have been so desperate to get their hands on some cash that they’ve shackled themselves to an impossibly punitive equity deal.
The experience of Hungry House is an interesting example. Back in 2007 they made their pitch on Dragons’ Den and accepted an offer of £100,000 for a fifty per cent share of the business.
Four months later that deal fell through and they secured funding elsewhere. Co-founder Tony Charles thoughts on the experience are worth noting;
“THE EXPOSURE OF BEING ON TV WAS MASSIVE FOR US. BUT WHEN YOU GO INTO THE DEN, ASIDE FROM THE POSITIVES, THE ONE THING YOU CAN’T EXPECT IS A GOOD EQUITY DEAL. ON REFLECTION, WE’RE GLAD THE NEGOTIATIONS WITH THE DRAGONS FELL THROUGH.”
2. Relying On People
The people you choose to work with you are crucial to your success. You think you know your best mate until you find he or she is taking two hours for lunch and charging it to the business.
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If things get tough then you may have to sack people, people with families and mortgages who’ve chucked in a secure job to come and work for you. And then there’s that supplier who’s always so charming on the phone but who sends orders that are late or incorrect…
3. Time Management
Your most precious commodity and it’s always in short supply. You can work every waking hour but still not be making the best use of it. Can you identify the key tasks to which you should be devoting your time? If you can’t you’ll be in trouble.
It’s incredibly important to manage your time well, and prioritize the tasks that should be taken care of first. I’d take a look at some of the productivity hacks you can use to become a more efficient individual.
4. Dealing With Stress
One of the ways in which you’ll be in trouble if you don’t manage your time is that your stress levels will soar. You’ve opted for a life of freedom but with it comes uncertainty and responsibility and a high level of stress.
Day in day out you’ll be making decisions and some of them you’ll get wrong. You need to manage your stress levels because if not it will kill you, literally.
5. Technology Advancement
If we’re talking stress, then let’s talk about the pace of technological change.
You may be selling traditional hand-made pin cushions, but even so there’s no hiding place from the hot hot sun of technological change. And that change is only going to get more intense.
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It’s no good saying that you’re not really a techie, in case you haven’t heard, the geeks have already inherited the earth.
6. Growing & Scaling
You’re a success, great. Can’t we just keep things as they are? No. Your snowball is rolling down that hill and there’s nothing you can do to stop it getting bigger and bigger. If you’re going to continue being a serious competitor then growth is essential.
Sometimes it can be a tough challenge to be able to scale your business. You don’t want to do it too fast and end up unable to control things. Be careful when you start to scale your precious company. Do it right!
7. Overcoming Fears of Failure
Fear of failure is a HUGE thing is entrepreneurship. So many business owners fear growth, change or action, purely because they fear failure. In order to become a successful entrepreneur, you have to first remove the fear of failure.
It’s important to be able to take risks in order to succeed, and fearing that you’re going to fail is a guaranteed way to do exactly that.
8. Making Vital Decisions
It can tough being the one that everybody comes to for important decisions. Ultimately, you’re in charge of making most of these decisions, so you have to be brave enough to make them.
It can’t be avoided, so suck it up, and get better at being confident with making and sticking to your decisions.
Here’s a quick summary of the challenges that entrepreneurs face:
Lack of funds
Relying on people
Dealing with stress
Growing & scaling
Overcoming fears of failure
Making vital decisions
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Overall, it’s hard to become a successful entrepreneur.
A lot rests on your shoulders, and you have to be okay with that. These are the most common challenges that entrepreneurs face. So hopefully you can watch out for them, and do your best to prepare for them.