Start-up entrepreneurs consider launching a new company as a risky walk into the business world. When turning the idea into concrete results, they encounter many barriers to starting their business. Though rewarding, all these challenges are complex. Well-versed people in industry must also deal with them no matter how long they have been in entrepreneurial activities when starting an entirely new business. Here are the four most common initial obstacles that entrepreneurs face when trying to turn their passion into a business activity:
Financing
Experienced entrepreneurs have advantages over newcomers but still lack sufficient resources to fund their new businesses. This is mainly because you will be starting from scratch. Without money, you can hardly purchase the domain of your business website. Finance serves as the fuel to ignite your idea. Hence, it would be best to use it often to turn the idea into a giant, fiery business.
Fortunately, there are many ways by which you can arrange finances to launch your new start-up, including:
- Crowd-funding: There are various crowd-funding sites, like Kickstarter, Fundable, and Indiegogo, that can help you generate funds of hundreds and thousands of dollars.
- Family and friends: Your family and friends always help and support your dreams. You can approach them to obtain a loan, often without interest payments.
- Credit cards: Though helpful, a credit card provides a temporary solution between launching your business and obtaining other funds, such as a bank loan.
- Bank financing: A bank loan is one of the most common ways people adapt to raise capital for their business.
- Venture capital: When you have a robust business plan and a powerful vision, many venture capitalists are willing to invest in your business.
- Business partner: You may have a potential idea but not enough reserves to put that into execution. You might know someone who believes in your vision, has a good relationship with you, and has enough funds to start a new business. Then, partnering with that person may be a good idea.
- Second mortgage: Home equity lines of credit or a second mortgage should be your last resort when other options are not working out or aren’t enough to initiate the business.
Teambuilding
Teambuilding is the most challenging skill to nurture when you have never run or led a team. Moreover, even though you have good management experience, selecting the right pool of team members for your new business is often stressful and challenging. It is not merely about filling specific roles; you also have to bear their costs, effectively communicate your business goals to them, and make the most out of them. Such considerations are significantly hard when rushing to fill the positions as early as possible.
Here are some ways to build a great team in a shorter period for your business start-up:
- Offer stock options: When you cannot meet their salary needs, offer them equity in your business. This will boost motivation and will give you competent teammates.
- Employ interns: When you can offer excellent work, mentorship, and guidance, hiring interns is an intelligent alternative to heavily paid team members.
- Hire students, part-time employees, or contractors: When you cannot afford full-time workers, acquire contractors, part-time team members, or students instead.
- Defer compensation: You must be careful with your offer letters’ wording for hiring employees on deferred payment. You also have to ensure that there is no breach of any laws.
- Inspire others to join you: When you lack funds, then at the very least, you should have a compelling vision with extraordinary goals that will inspire and motivate others to be part of your start-up and support you.
Cut-throat competition
The corporate world is quite terrible with fierce competition, which poses one of the biggest hurdles for the launching and survival of start-up businesses. There is always some level of competition among companies of the same nature. And when you are a new online business, the competition gets more challenging. However, you can remarkably beat your competitors when you have an inspiring vision, an energetic team, unique service solutions, and outstanding customer service.
Here are two practical ways to overcome business competition:
- Focus on your customer needs: Nothing can help a business grow if you cannot sell your products or services to your customers. Please focus on your client’s needs and develop a unique service solution that eases their life. Everyone avoids the hassle, and so is your customer. Improve your products compared to what is already available in the market and make the most of the technology to sell more smartly, making the purchase hassle-free.
- Make it appear unique: People love tasting new things. When you launch a product with special features and details that distinguish it from similar products, you tempt your customers to buy from you.
Business registration
Business registration is a time-consuming and complex part of initiating a business. Some businesses cannot be launched without prior registration and legal approval. It could be more frightening for those entrepreneurs who have never been through legal processes. You should hire a personal legal consultant to eliminate this complicated start-up registration process issue and other legal requirements. A legal adviser will handle these matters on your behalf and also help you launch your business seamlessly.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
