Six (Totally Normal) Challenges Entrepreneurs Face
Embarking on the journey of entrepreneurship can be an exciting venture, but it's not all riches and glory. Being an entrepreneur is undoubtedly hard, and the latest stats show that only 40% of startups turn a profit.
There's a lot of things entrepreneurs wish they knew before they started out, things which would have made their lives easier. Here are six things, in no particular order, that nobody mentions about being an entrepreneur.
1. It's Hard to Get Funding
Shows like Shark Tank make it seem like millions of dollars are out there, just waiting to be thrown at entrepreneurs because they have a good idea. The reality is anything but. Financing can be very difficult to secure, especially if you don't have a proven track record of success yet.
And funding can be expensive, where you have to give up significant portions of your profits or business to investors. This is one of the reasons the vast majority of start-ups are bootstrapped, or paid for by the owners themselves.
I recently learned about Clearbanc, which is a growth capital option for startups that is changing the face of fundraising. I dive in more here.
2. You Don't Have to Pay a Ton for Digital Assets
Just let Google see you searching for something related to digital assets, and you'll be bombarded by ads for tons of graphic design sites, graphic artistry, or marketing material solutions.
You probably don't have the budget for an expensive personalized service when you are just starting out, so you need to know where you can get digital assets for cheap (or free). Free graphic design sites like this one are great for creating a logo or graphic assets to help you with online marketing and outreach.
Creative Market is another amazing option for affordable branding options. From photos to Canva social media templates to fonts and more, you can get gorgeous creative assets for a super affordable price! There are times to spend money on a graphic designer, and there are times not to. The truth is, sometimes a $25 template is all you need.
3. Many Startups Fail
There are conflicting statistics, but one thing is for sure; a fair amount of startups don't make it very far before they fail. There's a variety of reasons for this, but it's important to know that before you start. It's also important to know that failure isn't the end; you can learn more from a failure than you ever could from a lucky success.
It’s easy to live in fear — but you shouldn’t. Knowing that you need to work hard, dig in, be strategic, and sell yourself in order to succeed will help you succeed. (P.S. If you’re familiar with my group coaching program, Let’s Uplevel Your Business, you’ll hear me talk about 2 things: market research and getting out of the trenches so you can work on the business rather than in it. That’s because those 2 things are critical to your success.)
4. Your Customers Are Your Boss
Many entrepreneurs strike out on their own because they're sick of answering to a "boss" at work. But being an entrepreneur doesn't rid you of all responsibility. Especially in the beginning, the customers you land become your “boss,” since you'll be catering to them and focusing heavily on their needs.
This isn't forever, but it's a fact that when you first start out, you're still going to have to set deadlines (and make them), work hard, and play to impress. If you’ve been at this for a while but nothing seems to be changing, it may be time to set some boundaries. You can’t always be hustling.
5. You Need a Plan
This isn't just for securing funding; you'll need a plan to be successful with your business. This is one of the doldrums of business ownership, but it leads to success much more often than flying by the seat of your pants.
Doing solid market research, knowing what your customers want, knowing what you're capable of delivering, and knowing yourself are just as important as knowing the particulars of marketing or knowing how to build a website. Taking the time to create a good plan, and being able to adapt, is crucial to success.
6. Entrepreneurship Can Be Lonely
“No man is an island,” as the saying goes, and entrepreneurs (be they men or women) are no exception. Luckily, the internet age has made it simple to reach out to other entrepreneurs online to get tips, share successes and mistakes, and get emotional support.
Even if someone in your entrepreneur group is in a different industry, this networking can also have practical benefits by linking you with a potential client or business opportunity. You never know what seemingly random connection might turn out to be lucrative.
You also need to be considering from an early date what it looks like to morph your business into a team. “Individuals don’t build great companies, teams do.”-Mark Suster
Trying to be a one-person team is rarely the smartest way to run a business that will sustain you for years to come. Pro tip: outsource the work you’re bad at and hate doing first.
Starting a Business is Full of Surprises.
There's no way to predict exactly what challenges a new small business will face. It's a venture that will inevitably result in surprises, shocks, and hardships. These are just a few of the many things entrepreneurs will find to be true and helpful when they start their own small business.
Want to connect with other small business owners? Join US at an upcoming retreat, or apply for 1:1 coaching.
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