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8 Challenges faced by entrepreneurs

You could have a billion rand idea and think the road to getting a fat bank balance will be easy. Well, you could be in for a shock because being a CEO is not child’s play. It means working more than eight hours a day, fighting many battles and making a lot of sacrifices.

Here a eight challenges that you may come across as an entrepreneur.

Hard decisions

It could be difficult to leave your current job and be an entrepreneur if you already have a set income every month to cover expenses. You could find the transition hard. Starting your own business and leaving the safety net of a stable salary is a risk. That’s why you must do extensive research on the business you want to start before you take the leap. Life is a gamble and the higher the risk, the higher the reward.

Homework

Another challenge that entrepreneurs face is they don’t do enough homework on the business they want to embark on and the business ends up becoming a huge failure. An entrepreneur needs to do research beforehand to find out if their business will profit. They should find out if there’s a demand for their product, analyse their competitors and find out where to locate it. Research is critical as it could make or break your business. For example, if you open a restaurant in a place that’s hidden and with no parking space you’re not likely to get customers.  

Time-management

You could think since you’re your own boss, you’ll have free time to play golf and show up at your office at noon. This couldn’t be further from the truth. As an entrepreneur you’ll find yourself wearing many hats and working long hours to get your business off the ground.

As a boss, your schedule will be more hectic than the people who work for you. You’ll be the first in and the last one out the office. The misconception is that entrepreneurs have a lot of leisure time. But entrepreneurs work hard.

Hiring the right people

When you’re starting out your own business you have to find the best people that’ll build your business. The people you hire will have a direct impact on how successful your business becomes. Do a thorough background check on them to make sure they’re people you’d want as part of your team. And make sure to ask critical questions tailored to the position in the interview to see if they’ll be the right fit for your company.

Getting rich fast

When you first started daydreaming about your business empire you probably envisioned customers queuing up to get your product and adding more than six zeros in your bank account in the first month. But the reality is the road to success is often fraught with problems and pitfalls.

Many entrepreneurs get into the business thinking they’ll get rich quickly because they’ve heard of overnight successes but that’s a myth. It takes years for some entrepreneurs to see the fruits of their labour. If you’re willing to put in blood, sweat and tears you’ll reap the rewards. Entrepreneurs have to be realistic and know what they’re getting themselves into. They must also be aware that each financial period is different to the next; there’ll be a lot of ups and downs.

Quitting

You’ll think about quitting more than you think you will. There’ll be tough times ahead and the stress could be hard to handle. That’s why an entrepreneur needs to be prepared for the challenges that could come her way. They must be persistent and know the road ahead won’t be easy. For example, if you have a coffee shop, the espresso machine might break and one of your employees might quit on the same day. It could feel like you’re moving backwards but you have to have a tough skin in order to make it.

Capital

You could have an incredible idea but you don’t have the financing to make it come alive. Lack of funding can be a real challenge to aspiring entrepreneurs. They could look at borrowing from family or getting a bank loan to start their company.

You’re the boss

Yes, you’re the CEO of your company and this might sound very exciting because there’s no one to tell you what to do. But to whom much is given, much is required. You could be responsible for dozens of people’s salaries and ensuring business expenses are paid. A lot lies on an entrepreneur’s shoulders and it can be overwhelming.

Learn more

An entrepreneur needs to be at the top of their game and ahead of all their competitors. There are always new trends and concepts that an entrepreneur should be knowledgeable about. They can take a business training course that could help them gain a better understanding of how to run a business successfully.

As an entrepreneur, you should know getting to the top will be a marathon and not a sprint. If you do your research on your idea and put in the hours, your business could become the successful empire you imagined it to be.