The pursuit of your own business sounds like an attractive idea because it presents an opportunity to become financially independent. In addition, for those who have been working for others, becoming your own boss also encourages action.
Unfortunately, the idea of becoming a business owner is often romanticized. Whether it’s a massive venture or a small business, business owners of both types have to face challenges that get in their way.
Of course, just because obstacles exist, they should not be enough to discourage you from pursuing the dream. Plenty of successful business owners overcame unique challenges and are running profitable corporations.
If you are up for a challenge and believe that becoming a business owner is worth it, then there is no reason to stop. However, knowing what challenges to expect in advance will give you a better opportunity to prepare.
Personal Health Concerns
Understand that running a business takes a significant toll on your personal health. As a regular worker, you likely underestimate the time and effort business owners put into ensuring that everything is going smoothly.
Even a seasoned entrepreneur usually struggles with getting enough sleep, especially if they have too many problems to solve without enough time. Hours and hours on the phone or staring at a computer screen.
Mental health suffers, too, mainly when you cannot find enough time to spend with your family because managing a business takes priority over your personal life.
Lack of Leadership
Lack of leadership could be another obstacle preventing you from reaching your potential. Someone has to rally the troops when things are rough. A good leader with enough charisma is a cornerstone for virtually every organization.
Leadership skills are something you can learn. And starting a new business from scratch will provide you with opportunities to go through trial and error. However, some people are born natural leaders, and they are more likely to succeed in the world of business.
Employee loyalty is a pain point, given how many people work for a paycheck. Finding a good employee is arguably the biggest challenge because it is highly unlikely that you will be able to run everything on your own.
It hurts when you invest in an employee only for them to leave you. Sure, there are instances when somebody resigns because the work environment becomes too toxic or they have no opportunities to go up the career ladder.
For the most part, though, larger businesses that have already established themselves tend to sniff out a valuable asset and persuade them to switch sides, leaving small business owners in a difficult situation.
The cybersecurity problem does not pick and choose what it affects. Both big and small businesses have to be mindful of internal and external threats.
The best example of a cybersecurity threat is malware. Employees who fail to protect their devices with antivirus software visit a shady website and infect the device, which then affects the entire network.
In rare instances, there might be someone who does shady stuff within the organization. For instance, they manipulate transactions with the help of malicious code because the liberal company culture allows for it. Tools that monitor the transactions and flag provide solutions are one way to overcome the challenge, but small businesses are unlikely to invest because:
- They are on a tight budget and want to save as much as possible
- They trust their employees completely
Cybersecurity-related woes might seem small, but they can snowball and cause significant issues down the line. Thus, it is crucial to prevent threats before they manifest or take a proactive approach by enforcing the right tools.
A solid marketing plan can be the difference between finding your target marketing and a solid business idea and struggling to establish yourself. Unfortunately, most effective marketing campaigns require a lot of investment.
Small businesses do not have the necessary funds, so they have to make do with whatever they have available. When working on a budget, it is difficult to test different ideas to see which one works, especially without prior experience in the niche. Aspiring entrepreneur can only go so far when they have limited funds.
Force majeure strikes when you least expect it. The recent pandemic showed how difficult it is to recover financially. Many businesses had to close or change their model by moving online.
You can take some steps to prepare in advance but cannot predict how big of a blow unforeseen circumstances will be. And there is no telling how much that will affect your pursuit of becoming a business owner.
To sum everything up, business challenges function as a mechanism that discourages aspiring entrepreneurs from taking action. Nevertheless, obstacles that get in the way are possible to overcome. At the end of the day, if challenges were too difficult, we would not have so many stories about successful business owners.