Entrepreneurs also enjoy more flexibility than regular employees. You can choose your operation hours, work colleagues, office layout, etc. Of course, you still need to maintain a degree of discipline to reap maximum benefits from your venture. These are some of the top reasons most people leave the 9-5 rat race to start their businesses.
These are some of the top reasons most people leave the 9-5 rat race to start their businesses.
However, steering a business to success isn’t a walk in the park. And if statistics are anything to go by, up to 20% of unsuccessful startups fail within their first financial year. These failures can result from financial challenges, unfavorable economic climates, or a combination of both. Below are five top problems small businesses face and what you can do to overcome each.
Lack of Funds
Money problems are undeniably the biggest threat to small businesses.
You could have a compelling business idea. You might even have assembled a reliable team of like-minded partners to help steer your business to financial success. But without startup capital, your business idea will remain just that – an expression of interest.
What complicates the situation for small businesses is the difficulty in getting funding. A large company may secure a loan quickly by depositing its bank statement or title deed with the creditor. But for startups, your options will often be limited to goodwill donors in your social circle.
However, the situation isn't as bleak as it sounds. You can still pitch your business idea to venture capitalists in your industry and secure decent funding for your project.
Unrealistic Expectations
All businesses are established with revenue generation as the primary motive. At least, this applies to all for-profit ventures. However, placing the profit motive above everything else can be a huge impediment to the success of your business. Your company loses track of its mission and vision when you view everything in profit-making.
As a small business owner, your primary focus should be scalability. Insist on plowing the profits back into the business as you set your eyes on penetrating new markets. Your startup could make you the wealthiest man in your city. But it takes a great deal of time and effort to accomplish that feat.
If you’re already feeling too stressed that your business isn’t picking up at the pace you expected, why not try anti-anxiety supplements like Sunday Scaries CBD are gummy bears made with CBD as the main ingredient.
THC is a natural cannabinoid in cannabis noted for its powerful therapeutic properties, including the ability to relieve stress and anxiety. Supplementing with THC-based products like THC gummies could combat stress and anxiety, allowing you to focus more clearly on your startup.
Unfavorable Taxation System
Does it strike you as odd that the lowest federal income tax bracket requires small businesses to pay as much as 10% of their income as tax? If your company makes between $0 and $19,000 annually, you automatically owe the IRA some $1,990. And that excludes any additional state-applicable taxes.
10% of your annual income may not sound much for established firms. But for startups struggling to stay afloat, it’s a little too much to part with. As a small business proprietor, you can discuss your tax obligations with the IRA and see if you can bargain for some relief.
Inadequate Research
Failure to conduct adequate research is cited as one of the top challenges experienced by small businesses. Preliminary research is among the common causes of failed startups.
You stroll around your local town and discover there’s no vape shop. Then it suddenly hits you that you could make a killing selling vape accessories. But unknown to you, there are no vape retailers in your local town because the practice is still outlawed in your jurisdiction.
If you did not conduct your due diligence, you’d have difficulty imploring the regulators to let your business stay. And since few people would want to be associated with illegal enterprises, it will only be a matter of time before your startup crumbles.
To avoid these unpleasant surprises, you should consider conducting extensive research before investing in any venture. Ensure you already have a proper business plan that outlines your funding sources, target demographic, and continuity plan, among other aspects.
Unsuitable Marketing Methods
Small business owners tend to be more reserved about adopting robust marketing plans for their ventures. These fears mainly stem from the misconception that good marketing is capital intensive.
Putting up a billboard advertisement downtown may indeed set you back hundreds of dollars. But you don’t need a billboard commercial when you can do flyers and brochures. As the adage goes, you simply have to cut your coat according to your clothes.
You could try digital marketing methods like social media marketing and search engine optimization (SEO). Besides improving your business visibility on the internet, most online marketing techniques are incredibly affordable.
Wrap UpAll businesses, regardless of size, face challenges from time to time. These problems can strengthen or break your willpower. Implementing the tips mentioned above can help you overcome most startup challenges and gain control of your venture.
