If you are starting a new business
, chances are, you are looking at the world through rose tinted glasses. It’s true – the prospect of ‘being your own boss’ and controlling your future is attractive. There’s no denying that. But there is also another side to that coin – one that most new business owners
do not realise until they are committed to their start-up.
That is that there are plenty of hurdles that small business owners face. As long as you know what they are, and you plan for them, you will be fine, but in this article, we look at the most common hurdles new businesses face, and why they could sink your business.
Probably the biggest hurdle that any small, new business faces is undercapitalisation. Even the best ideas cannot succeed if you do not have the funding to get them off the ground. Make sure that your business plan is based on the funding you have, rather than the funding you would like to have, and you should be able to get around this problem.
When you start a new business, you are always a ‘small fish’ in a big pond. That means that you are competing with established companies. The only way to get around this particular hurdle is to be better. Offer better services, or better prices. Have a broader product range, or add more value. If you are truly great at what you do, you will compete.
When you are starting a new business, chances are you are doing it on your own, or with a very small team. That invariably means that you burn the candle at both ends, while you are working to establish your new business. Every entrepreneur and new business owner goes through this phase, but you need to be very careful that you do not push yourself too hard, and burn out before you reach the stage when you can afford to relax a little more! Remember that you have to have balance in your life, and try to make time for yourself too.
Too Much Growth, Too Soon
It is probably the biggest irony in the world of small businesses, but the fact is that too much growth, too soon, can sink your company as fast as too little growth. The reason for that is that even if you are making lots of turnover, rapid growth puts pressure on your cash flow, and without cash flow, your business cannot make it. Make sure that you plan your growth carefully, and do not overextend yourself too much while you are getting started.
The final hurdle we are going to look at, that many new business owners face, is a lack of business skill. Many new business owners are great in their field – whether they are plumbers or dressmakers. Most, however, know everything about their business, and not enough about business itself. A good idea, for anyone who is looking to start their own business, is to take a short course in business management. That way, you will know enough about business itself to get and keep going.
As you can see, there are plenty of hurdles that new businesses face when they are starting out. That is precisely what makes entrepreneurs such special people though. Not only are we great at what we do, but we also see those hurdles as challenges, rather than obstacles. Remember that every challenge your business faces has a solution – all you have to do is find it.
Labels: new business owners, starting a new business