There are so many challenges or roadblocks would-be entrepreneurs face when venturing into business especially during startups. The way these challenges are handled goes a long way in determining whether a business would eventually be established or remain a dream that eventually wither.
In my experience, there are 5 major roadblocks that surfaces during startups. Though, several other challenges occur when starting up a business, but these 5 seem to be predominant.
Lack of capital or No fund is a popular phrase used widely by would-be entrepreneurs to explain why they are yet to venture into business. Let’s face the fact, without capital, you cannot be able to venture into business in the first place. According to Investopedia.com, startup capital refers to “the money that is required to start a new business, whether for office space, permits, licenses, inventory, product development and manufacturing, marketing or any other expense. Startup capital is also referred to as seed money”.
If you are ever going to see your dream business coming into the light of the day, then you should prepare to learn how to raise capital. You should reach out to solicit for funds. The easiest place you can get startup capital is from friends and family. They are people closest to you. However, if you are working and trying to make a switch into entrepreneurship, then you need to develop good saving culture. I know some people who raised up the seed money for their business through savings.
Apart from reaching out to friends and family or saving, you can also raise the needed capital by reaching out to investors or seeking credit facilities. Taking this root requires a lot of paper work and could be time consuming.
What to do
You may have succeeded in raising the needed capital, but without a clear understanding of what to do with the money, there wouldn’t be any business to do in the first place. I have met a lot of would-be entrepreneurs that are completely clueless on what to do. Personally, I encourage people to discover the needs that they could fill up through their business before seeking for funds. There is a popular saying that when the students are ready, the teacher will appear. When you are clear about the purpose of your business, you will be in a better position to persuade people to support you.
In my thinking, this is a very big roadblock would-be entrepreneurs face. With all the fund you might be able to raise and without good workable business idea, you are on course to fail. If you don’t have an idea on what to do, search inside yourself. Look for unique or sought-ought needs around you, that you can be able to solve profitably with your talents, skills, expertise and so on.
In today’s world, more than ever before, competition is so fierce that some once established businesses are getting out of business. If competition could drive away thriving enterprises out of business, then the case of startups would be like a fierce wind blowing ashes away. To succeed in the market place, it’s important that you continually remind yourself that competition is a major roadblock would-be entrepreneurs face.
If you one of such persons that thinks that your idea is so novel and no one can compete you, I would encourage you to have a rethink because, the reality is that you are having an illusion. Every smart entrepreneur understands the importance of being proactive. They understand the power of competition. As a result, they are always looking out for ways to serve their customers faster, cheaper and better than any other business.
As a startup, you should ensure that your customers or prospective customers are always satisfied. Create a very pleasant experience for your customers that will make them tell good stories about you. If you can do this, then you stand a chance of thriving amidst competition.
Track record simply means the past achievements or performance of a person, organization, or product. Everyone seems to be looking for track records. Whether it is hiring a new staff, choosing a marriage partner, donating to a charity course, etc. The same applies to who patronizes your business and who doesn’t. Track record is a big roadblock would-be entrepreneurs face during startups as they don’t have any.
The interesting thing is that they can build it. Each encounter with a customer or prospective customer is an opportunity to build a good or bad reputation for your business. Every time a customer purchase from you is an opportunity to build good track records. If you provide your customers with excellent services or products, they will definitely say something positive about you to other people.
If you have ever worked in a serious organization, chances are that you would be disciplined. Every serious organization expects their staff to come to work early during working days and to remain productive during the working hours. Sometimes, employees go to the extra mile beyond their line of duties to impress their superiors. They are mandated to obey all the rules and regulations of the organization. Else, they stand a chance of being fired or suspended.
Unfortunately, running your own business gives you a false sense of freedom to act as you like. Unlike employees, nobody is there to babysit you or give you directives on how to handle your business affairs. You might decide to come to work or not, come late or go home and sleep anytime you want. You are the boss, as such, you don’t need permissions from anyone.
However, the cost of indiscipline is so grave that one way or the other, it will reflect on your bottom line. And if you are not so careful, your business will be short-lived. Never fall victim of indiscipline.
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