Top challenges of entrepreneurs
Entrepreneurship is a worthwhile goal that can offer many rewards, but it comes with many challenges. The risks of failure, financial instability, stiff competition and simply navigating the unknown present hurdles that entrepreneurs must constantly overcome.1
In this article, we will discuss several key strategies to address several common entrepreneur struggles. Nationwide can help provide solutions to many of the challenges faced by entrepreneurs.
Hiring the right people
Being an entrepreneur can make you feel like you’re alone on an island, but hiring a good team to support you can make all the difference. In a small business, every employee you hire matters. It can be difficult to find exactly the right fit for your team, but taking the time to do so will be a worthwhile investment in the long run.1
Depending on your business, you may seek employees with a specific skill set. But beyond the technical qualifications they possess, you should also look for employees who display the soft skills that are essential to success. Look for candidates who:
- Are reliable
- Have problem-solving skills
- Can work independently and collaboratively
- Are adept at conflict resolution
- Have good communication skills
These five areas are some of the top qualities that mark a good employee.2 The hiring process can sometimes be long and arduous, but as a small business, you should be selective in your choice of candidates. Being open and honest about your expectations for the role up front will set the tone to attract the type of candidates you’re looking for.3
Managing time for a work-life balance
One of the greatest challenges faced by entrepreneurs is burnout. Entrepreneurs tend to pour their entire self into their business — often at the cost of other aspects of their life.1 This can lead to an unhealthy and unsustainable work-life balance. You simply will not function at your best and most productive if you’re exhausted and burned out, and in the end, it will affect both your business and your relationships outside of work. Giving yourself the freedom to relax and recharge will do more than make you feel good — it will also recharge your creativity and passion.4
Bringing on team members to delegate work to can be one way to reduce your workload, and therefore your time constraints. Refer to the resources in the previous section for tips on hiring the right employees for your business. But if you’re not ready to expand your team yet, establishing a time-management system that works for you — and then sticking to it — can help you create a better work-life balance. Focus on prioritizing the most impactful tasks on your plate first before tackling the smaller items.5
Maintaining capital growth
Your business’s health relies on your ability to maintain capital growth. There are numerous ways to access initial funding for your startup, including SBA loans through the Small Business Administration, opening a business line of credit, crowdfunding, grant funding and angel investors.6 Once you have your initial investment in place, you must now manage your cash flow carefully.
Cash flow refers to the increase or decrease of money coming out of your business. Ideally, your business would maintain a positive cash flow, which indicates that you are making more money than you are spending.7 According to Forbes, cash flow shortage is one of the most common reasons for business failure. Get ahead of potential cash flow problems by being conservative in your spending and setting up savings reserves for times when business falls shorter than expected.8
Marketing your product or services
A problem many entrepreneurs face is how to get the word out about their product or service. However, entrepreneurs are also often reluctant to invest time and capital into marketing tactics. You don’t have to go all-in at once, but starting with even with even small marketing investments can help drive new customers to your business.5
Creating a marketing plan can help you stay consistent with your marketing outreach. Use it to align your business goals with the marketing tactics and strategies at your disposal, as well as to analyze the effectiveness of your marketing efforts in relation to the budget you allot for it.9 If you aren’t comfortable spearheading your own marketing strategy, an outside expert can help. Freelance or agency-based marketers are adept at creating and executing marketing plans and can help you customize a plan that fits your budget and needs.3
Starting the journey
Deciding to become an entrepreneur can be daunting, but with a good idea, a smart business plan and a little help from your support system, you might be able to start the successful business you’ve dreamed of.3 One of your greatest enemies will be self-doubt. Trust in your planning and choose your timing carefully to help ensure a successful launch from the start.8
It also helps to have trusted partners on your side. Nationwide’s business coverage helps small businesses manage their risk and liabilities, protecting both the small business owner and everything they’ve built. With coverage you can trust, we help small business owners gain the confidence they need to feel prepared to start their business.