March 19, 2017
New entrepreneurs have big dreams, but there are many things that can stand in the way of bringing their vision to fruition. This isn’t surprising when you consider that entrepreneurs who have already been involved in multiple startups can still make the same mistakes.
The reality is that getting a startup off the ground takes a lot of hard work, the right amount of capital, the dedication and patience to work through a long list of unexpected challenges. Whether you’re hoping to launch your first company or your tenth, it’s a wise idea to better prepare yourself for the challenges ahead.
1. The Emotional Toll
Are you fully prepared for the stress and emotional toll of launching a startup? Personal relationships can suffer greatly when an entrepreneur starts a new business. This is because there’s often the misconception that the only way to be successful is to spend an exorbitant amount of time working, especially during the first year.
Although it’s important to give a lot of time and energy to your project, you also need to prioritize your physical and mental health. Working non-stop is highly stressful, and stress has been proven to kill. Avoid emotional burnout and fractured relationships by learning how to balance your work and home lives.
2. Hidden Costs
You’ve gone over your budget with a fine-toothed comb, and you’re confident you’ve considered every possible issue that could arise. Suddenly, you discover that something as routine but essential as an IT project has put everything out of whack.
Hidden costs pop up everywhere, so you need to be very generous with your budgeting process. You can also reduce a lot of stress and heartache by carefully considering industry statistics.
3. The Difficulty of Assembling a Good Team
You may believe that hiring the right team is as simple as selecting highly qualified people for each open position. However, the hunt for your teammates should actually be a lot more nuanced than that. Yes, the first candidate may look slightly better on paper, but do they share your vision as much as the second one? Are they cooperative or combative by nature? Will they fit in well with the other members of your team?
These are all questions you need to ask yourself before you hire someone. Ideally, you’ll want people who share your passion and can fit in nicely with the workplace culture you prefer. Choosing this approach may take longer, but your patience will be rewarded.
4. Crowdfunding May Not Work
Crowdfunding has become the major capital funding source of choice for many entrepreneurs. There are numerous success stories to emulate, but it’s vital to be aware that many more of these campaigns fail. Therefore, if you’re putting all of your eggs into the crowdfunding basket, you’re setting yourself up for failure.
If you’re still committed to the idea of crowdfunding, you need to be prepared to face several related challenges. Choosing the right platform is step one. If you don’t properly do your due diligence here, you might as well not bother to launch a campaign at all.
After finding the right platform, you’ll still need to work hard at building interest. Make sure you fully understand what a crowdfunding campaign entails before you try to rely on one for financial assistance.
5. Lots of People Will Say No
Perhaps the most important thing you need to prepare yourself for is rejection. Mark Cuban and “Shark Tank” showcase that even a good idea can be met with a “no” for a large number of reasons. This is something that you will almost certainly need to get used to if you want to acquire funding or convince stores to carry your new products.
Remember: Cuban has regretted saying “no” at least once. Even if several potential investors pass, this doesn’t mean you won’t have a successful future, but you do need to be able to bounce back after each rejection.
Allow yourself to dream. At the same time, take a realistic look at everything and educate yourself as much as possible. This will help you avoid future issues from major challenges you failed to anticipate.
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