Being an entrepreneur can certainly come with challenges and risks and if it were easy, everyone would likely be interested in entrepreneurship. New entrepreneurs can face even more difficulties than seasoned professionals, so let’s take a look at some of the biggest challenges and difficulties new entrepreneurs can face.
A Lack Of Entrepreneurship Education and Training
Because being an entrepreneur essentially involves ‘doing your own thing’, there are no formal qualifications required to become one. Many budding entrepreneurs, therefore, dip their toes in the world of business and wealth building with little to no entrepreneurship education and training behind them.
It’s always wise to seek as much training and knowledge as possible with a quality education industry company; that specializes in entrepreneurship training. Education all but guarantees ongoing success.
Taking a Leap of Faith
It’s not easy to go against the norm of settling for the stability and security of employment, to venture out into the business world. It takes a leap of faith and it’s this crucial step that often proves to be a stumbling block for many new entrepreneurs.
There are a lot of unknowns to be faced when stepping outside the comfort zone and it takes faith, dedication, and resolve to confidently take that first step and run with it.
A Lack of Funding
Whether a new entrepreneur plans to start a business, invest in a commercial enterprise or try their hand at the property market, a lack of funding or poor money management can often lead to the destruction of aspirations and eventual success.
Not only are sufficient funds required to get a business venture off the ground, but cash flow and money management need to be ongoing in order for the business to survive. Fundraising is another financial issue that many new entrepreneurs face.
Effective Time Management
Entrepreneurs often have to wear many hats and adopt a variety of roles. Time management becomes a common problem faced by entrepreneurs because there are so many things to do.
Cull any tasks that don’t align with your goals to free up some time and if possible, delegate necessary tasks to others to accomplish. Just like a lack of funds can kill a business, so can a lack of time management and organizational skills. Time needs to be used wisely.
Gaining a Competitive Advantage
It’s almost impossible to come up with a completely new idea in today’s world. Therefore, you will always have competitors to contend with. One of the greatest challenges facing new entrepreneurs is finding ways to differentiate themselves from the competition.
Every business or new venture needs a competitive advantage to stand out. Some common ways this can be achieved is by offering something new and different, competitive pricing, value-adding, and more.
It’s a competitive world out there and new entrepreneurs really need to come up with something that sets them apart from the competition.
Many Entrepreneurs Struggle With Delegation
Delegating was briefly mentioned in effective time management and it’s something that so many entrepreneurs – new or experienced – struggle to do. In fact, it’s one of the most common difficulties entrepreneurs face.
Having the inability to delegate often results in a lack of ability to scale a business. Instead, it remains a small business or freelance enterprise. The inability to delegate and trust others to perform tasks leads to many entrepreneurs actually getting in their own way.
Many new entrepreneurs start out like a house on fire and finish like a smoldering ashtray. Entrepreneurship means having the ability to stay the course, to understand that it will take time before a new venture will flourish and become profitable.
Budding entrepreneurs start off filled with excitement but soon find themselves burning out physically, emotionally, and mentally when things seem to be taking too long or when problems arise.
New entrepreneurs need to fully understand the world they’re stepping into and must have a firm resolve to stay on the course of success.
While there may be many challenges new entrepreneurs face and will have to overcome, being aware of those challenges is one major step in the right direction. Also, getting entrepreneurship education and training goes a long way toward recognizing and avoiding problems before they can become an issue.