As a self-employed, you get a unique opportunity to achieve the ultimate freedom and the coolest satisfaction when everything goes sky high. It is great to be independent and live off what you are passionate about.
However, it is no secret that if not everyone, then almost everyone encounters challenges in their experience, especially novices who are completely new to the industry.
We have found the top 5 most encountered challenges entrepreneurs experience:
- Finances
- Competencies
- Network
- Relevant advice
- Work-life balance
These are the challenges every single entrepreneur encounters at least once on their business journey.
Finances
This one is especially experienced by emerging entrepreneurs. It costs a lot of money to start your business, there are many one-time expenses in the beginning, and it takes some time before customers start to flow in. Therefore, there is very little money in the piggy bank.
Generally, it takes a few years before the business starts generating profit, for some it might happen sooner. However, it’s common for entrepreneurs to experience challenges getting everything up and running with work and with private life.
There are a few tips on how to tackle this challenge. Among other things, you may have a job on the side of developing your company, perhaps you saved up so much that you do not have to think about the finances for a while. Then, there might be an agreement with a partner that their salary supports the finances of the company, which can help generate profits.
If the company grows and there are plans for further expansion, finances can also be a challenge, as it requires money to expand to new markets, countries, etc. Entrepreneurs have the opportunity to look for investments to help solve this challenge.
Competencies
When you begin your entrepreneurial journey, it is not always that you have all the skills to handle everything yourself. There are many aspects that must be dealt with when you are independent, which can be everything from economics and law to marketing and sales.
There is no shame in not knowing everything, very few people do. Fortunately, there are a lot of amazingly competent people who have really good knowledge and skills in what the entrepreneur is not strong enough.
Competencies of the entrepreneur shouldn’t be a stumbling block on the journey of the entrepreneurial dream. Passion and will are far more important to possess than the right competencies. You can learn skills, but passion and comes from within, it cannot be learned. With great passion you will get quite far.
Moreover, there are many who find it difficult to pass on the responsibility. The entrepreneur may have overseen everything for a long time, so it can be difficult to leave control to someone else. This is about letting go and trusting that your employees can handle the tasks.
Network
It’s not uncommon to start a company without a large network and find success. However, it often takes more work and effort from the entrepreneur to succeed. Having a network will help the entrepreneur get more hands-on deck to help with various tasks that will provide better support for the various processes, which often can turn out to be a cheaper route as well.
With a good network available, you can get quick answers to things you are in doubt about. If this is the first time you are starting out as a self-employed, it will be great help to have someone in your network who is self-employed, even if it is not in the same industry. There are many recurring processes, challenges and doubts, and having a like-minded entrepreneur can provide a great deal of understanding, empathy and support, when going through challenging experiences.
Network as much as you possibly can, you never know when you will need someone who has the necessary competencies.
Of course, networking is not just connecting with people on LinkedIn and thinking that is it, I can ask anyone for anything and get it. No, it is about being proactive, it’s about writing and talking with people in your network. It’s about sharing your knowledge and discussing other opinions. It’s as much about giving back as receiving.
Relevant advice
As mentioned earlier, as self-employed you often do not have all the necessary knowledge to launch and run a business. Entrepreneurs often seek relevant advice, which can be both difficult to find and very expensive. This can be very challenging.
Clarifications should be done quickly, as there are many aspects and questions needing certainty, while you have little money at your disposal, which means prices for the advice should not drain the budget.
It’s about being prepared. You need to make sure that the advisor you have chosen provides you with the right advice. In addition, you need to be fully prepared for the counseling session, so you are fully clear on what knowledge you would like to obtain. Furthermore, you need to be aware that should you come up with an array of questions the next day, there goes another hour’s salary, which can be heavy on your budget.
Relevant advice is expensive and hard to find, which is why having a good network is so crucial.
Work-life balance
This is a big challenge for someone who is self-employed. When running a company there are a lot of things to look out for, especially in the early stages, which more often than not leads to the downgrade of the entrepreneur’s personal life. The business becomes your toddler, your baby, your child where you clock in lots and lots of hours. While it seems second nature to you, your family and friends might see it differently. Your absence will be felt, since you will dedicate less time to connecting with your social circles.
As self-employed you have tons of responsibility to carry on your shoulders. You need to take care of many different details, which can take up lots of hours of your days. It is about finding a balance so that your life doesn’t completely become your relationship with your company.
It is a very good idea to get away from your business occasionally. By getting that distance, you will get more energized, thus more focused when you come back. Moreover, it is a good idea to take a step back every once in a while, to see the full picture. You often get lost in your day-to-day business life, becoming blind to the big picture.
As a member of Startup Central, we can both advise and give you suggestions on these tough challenges.
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