Barriers to Starting a Business and How to Get Around Them
Starting a business sounds appealing to most people, but only a fraction of those that consider it actually go into business.
This is understandable. Businesses take a lot to put together, and the idea of merging resources into a venture without a guarantee of success tends to put people off the idea of business.
However, entrepreneurship works best for those that try, learn, and strive to do better with each venture.
If this sounds like something you are willing to do, here are the common barriers most would-be entrepreneurs experience and how you can get around them and indeed start a business.
For most entrepreneurs, funds are the first problem they face when trying to set up a business.
This is especially true for young entrepreneurs fresh out of college.
To set some cash aside, look into employment, taking loans, credit debt, and so on. You can also consider partnering with two or three people to reduce the amount each individual has to front for the venture.
Once started, you can bootstrap your business to repay loans and make savings to help you scale the business.
You can also take up some business-relevant courses to ensure you can handle multiple business tasks. This eliminates the need to hire many people while starting out and saves you money in wages.
Inadequate Cash Flow
This can be experienced by people with significant startup capital, as well as those without.
If you run out of money along the way, this affects your operations and can bring a promising business to a standstill.
To prevent this, you need to have a firm handle on your business finances to understand the patterns around your finances.
In addition, have an emergency business kitty to cater for unforeseen business expenses.
Time is yet another commodity most people have trouble with. If you already have a 9-5, it gets even trickier to get around.
In the initial stages of setting up your business, you will need time to scout for locations, market, and even oversee the day to day operations of the venture.
Unfortunately, there are no shortcuts to this. You will need to make some sacrifices and get yourself well-organized to handle everything on your plate.
Once you get things up and running and get a reliable team in place, you will find that your workload will reduce drastically.
A great business idea remains just that without customers. This makes marketing an integral aspect of any business.
Traditional marketing methods are effective but pricey, which might not be feasible for a startup. Digital marketing, on the other hand, delivers impressive results cost-effectively.
Look into content marketing and social media posts, to begin with. And then push for referrals from people known to you.
The foundation of any effective marketing strategy is knowing who you are trying to reach with your messages.
Take time to carry out extensive research into your client base, where to find them, and what they would respond well to. With these factors in mind, you can then create a marketing campaign that targets them effectively.
New market entrants often have a hard time trying to win over customers from the more established competition.
While winning trust can take some time, you can take specific actions to shorten the timelines significantly.
To begin with, as you research other aspects of your business, research your competitor as well. Look at what they offer, their pricing models, and what they could do better.
Use this information to create a differentiator in what your business will offer. Think of it this way, with the exact same product and pricing, most people will stick with the existing brand than try a different company for the exact same thing.
It’s not Easy but it’s Well Worth it
As rewarding as entrepreneurship is, it’s equally challenging.
If you feel convinced that is the path you want to take, these challenges should not deter you. Extensively research an idea, consult other business people, and identify any kinks that could interfere with your success and how to eliminate them.
You will have to go through the narrow path, but it will be worth the effort.