March 24, 2023
The process of starting a new business is an exciting journey, filled with new possibilities, but not without its share of challenges. In the beginning, you are likely to face hurdles every few steps, some which can force you to abandon your dreams for good, without the right guidance and mentoring.
Understanding these common set of problems, and knowing about the various workarounds for the same can help budding entrepreneurs find their footing. In this article, we aim to do just that, with a deep dive into a few common hurdles, along with ways of dealing with or overcoming the same.
The first thing to do before getting your operations off the ground, is setting up a legal entity under which you can conduct business.
Not only is this mandatory for compliance with various local, state and Federal laws, setting up an entity such as an LLC or LLP can help protect entrepreneurs and their personal assets, in the case of losses, fines, and lawsuits.
An LLC is the best in this regard, and has gotten a lot easier to set up over the years, with minimal paperwork, rules, and regulations. Here’s a brief primer on how to get one up and running in the least amount of time,
Consult with an attorney or business advisor, and consider using services like Tailor Brands, to ensure you follow the correct procedures and fulfil all legal requirements when setting up your LLC.
A clear and comprehensive business plan is the foundation of any successful business. It is a roadmap that outlines your vision, goals, target market, competition, marketing strategy, and financial projections.
When developing your business plan, conduct thorough market research to understand your industry, identify your target audience, and analyse your competition. This information will help you position your business more effectively and create a unique value proposition.
Additionally, focus on creating a detailed operational plan that covers aspects such as production or service delivery, supply chain management, and customer support. A robust business plan guides your decision-making and becomes a valuable tool when seeking funding from potential investors or financial institutions.
Funding is often a significant hurdle for startups, particularly in the early stages when the business may have yet to generate substantial revenue or establish a strong credit history. To overcome this challenge,
Each of these options have their respective pros and cons, so choose the one that best aligns with your business goals and long term objectives.
When presenting your business case to potential investors or lenders, emphasise the market potential, unique value proposition, and the expected return on investment. Prepare a compelling pitch deck that communicates the scalability and profitability of your business idea.
Additionally, you can consider bootstrapping, that is to say, fund the business with your own savings, and work towards creatively cutting costs, in order to make the most of your money. This is how a vast majority of businesses get their start, and is in some ways an ideal approach.
In the realm of exploring strategic avenues for growth, engaging with a corp dev (corporate development) team can also be invaluable. These professionals specialise in mergers, acquisitions, partnerships, and other strategies that can bolster your business's position in the market. Leveraging their expertise can offer insights into potential growth areas you might not have considered.
Much like bootstrapping, this approach requires a well-thought-out plan and an understanding of your business's strengths and weaknesses, but it can pave the way for accelerated growth and expansion.
Assembling a capable and dedicated team is crucial for the success of any business idea. However, finding the right individuals who align with your vision, possess the necessary skills, and share your passion can be challenging.
To overcome this hurdle, network within your industry and attend professional events to connect with potential team members. Utilise online platforms and job boards that cater to entrepreneurs and startups.
Conduct thorough interviews to assess candidates' experience, qualifications, and cultural fit within your organisation.
Offer competitive compensation and incentives to attract and retain top talent, but while top of the line salaries are important, consider offering equity or profit-sharing options, as they can be attractive to individuals who believe in your business's potential for growth.
Starting a new business comes with its fair share of hurdles, but they can be overcome with careful planning and perseverance. Remember that entrepreneurship is a continuous learning process, so stay adaptable and embrace opportunities for growth and improvement.
Any and all challenges can be successfully overcome with a bit of determination and street smarts, the only thing is to keep going no matter what you are faced with.
