Becoming an entrepreneur is not as glitzy as it seems. Some motivated and aspiring entrepreneurs are befuddled by the power that comes with the title of chief executive officer or a business owner. They often overlook the potential frustrating obstacles that come in their way during their entrepreneur journey due to their ambitions. Entrepreneurship indeed comes with financial freedom and rewards, but they need to do hard work to get there. You can deny that success comes with frustrating obstacles along the way. Let’s take a look at the seven most frustrating hurdles that every entrepreneur will face.
1. How To Find Clients?
This is the No. 1 obstacles for every entrepreneur. There are a lot of most prestigious companies have employees who work every day to find new customers. Yes: Apple, Toyota and McDonald’s don’t just wait for prospects to arrive on their own. But for a smaller business that lacks that reach, finding clients can be particularly difficult.
Many entrepreneurs find themselves confronted with problems of financing their project. This may include the inability to raise funds; the refusal of banks to lend money, the reasons can be numerous because the ROI is not sufficient for them.
Solutions to get around this obstacle exist such as “business angels”, who advance money to business leaders within compensation an entry into the capital. Also, financial aid put in place by the State, under certain conditions, can make it possible to remedy this problem of financing the entrepreneurial project.
3. The Money For Advertising Budgets Is Finished
It’s a fact. Even if they want to advertise, be it traditional or online, professionals or companies do not have much money to invest. Let’s think for example of small and medium enterprises. SMEs represent the majority of American companies. Their problem is that especially nowadays, making it difficult to compete with other rival companies that are proving to be increasingly fierce; they have little room to invest in advertising.
It makes them undoubtedly not very competitive in their reference market?
Then there are the start-ups, those companies that have invested a large part of their available budget in innovation and research, being characterized by a large element of novelty. In fact, given their innovative nature, these same companies have not yet generated revenues. Therefore, the only way forward is to give up activating promotional initiatives of any kind.
4. Management of Business Expenses And Cash Flow
One of the main reasons entrepreneurs fail is poor budget management. It is often complex to prepare a budget in advance when unforeseen events can occur. Likewise, it is essential that you control your accounts receivable and payable. Your accounts must be up to date in order to better manage the company’s budget.
5. Delay In Customer Payments
Entrepreneurs have struggled to receive payment from their client on time. This little problem can lead to significant financial hardship. In general, customers tend to pay after their purchase, but it can be difficult to keep up with the amount of outstanding revenue you expect.
6. How To Hire Talented People?
If we put this question in the second position, it is because the question of recruitment is often treated in the “stewardship will follow” mode! It is a mistake. If finding clients is the number one priority, finding good employees is undoubtedly the next one!
Hiring is probably the biggest challenge for businesses, let alone for leaders of small businesses who tend to lack critical resources from the start. Hiring new employees is a big business and a complex process.
7. Face The Competition
Competition is the next challenge you will face when starting a business. Most people see competition as a bane but try to see competition as a good challenge. See competition as a benchmark for creativity, then the main driver that drives innovation and the production of quality products at competitive prices. Without competition, there will be no innovation, and without innovation, the world will stagnate.
You must see competition as a welcome challenge. Competition keeps us on our toes and pushes us to improve our products and services continuously. But you must be warned. Competition can cause your business to lose its relevance in the eyes of your customers, so you should always be on your guard.