The truth is, starting a business is not easy. There are several things to consider so that your business can be a success. The truth is, there are a ton of challenges entrepreneurs face. Even experienced entrepreneurs have to deal with many challenges.
But for the new breed of entrepreneurs have to deal with being new to the game (for example, finding a startup office space in San Francisco). Hence, there is a lot of learning that they have to do to survive. And in this pandemic, there are more challenges to face.
Let’s begin the journey to entrepreneurship! We listed all challenges you’ll face before you hit the jackpot!
1. Facing the uncertainty
This challenge is common, especially today. Often cited by the business owners is uncertainty on health and safety. This may include the timing and opening of their businesses in a time of crisis.
Often today, you may be asking questions. These questions may relate to the profitability of their business or if customers will like their product.
Whatever your questions are, there are no solid and reliable answers because there are many changes from time to time. There are going to be new developments emerging in the market. There will be another crisis that may come.
Solution: Just ride along with this challenge. Given that circumstances changes, there might be something good at the end of it all. As an entrepreneur, you got to have faith that things will get better and be patient.
2. Access to a mentor
This is a challenge for young founders especially. Kauffman Foundation cited that finding mentors is a challenge to 60% of the aspiring entrepreneurs out there.
Being in the business quite means that you are on your own. But that doesn’t mean that you won’t need help. That is why you need a mentor to guide you in this journey. You need advice, insight, and direction from people who are in the business for so long.
Solution: Get yourself out there! Reach out to potential mentors by attending networking events, industry-specific expos, and social media platforms. This is where you can connect with like-minded and experienced people in the industry.
But before you get in touch with them, try to do your research on a figure you look up to. Attend your favorite mentor’s seminars and read their stuff online. They may also have talks and tutorials posted so that they can be a starter.
Learn from the best of Silicon Valley through our mentorship program. Our lineup includes professionals from Google, SafeLogic, and more.
3. Financing your business
Money talk can be daunting. And yes, starting your business means putting capital in place. And today, getting the fund is even hard for entrepreneurs.
Startup fundraising is a lot of work for most entrepreneurs. Not knowing the process and what it takes to lead the fundraising can be frustrating. There will be failures.
Even the best startups and founders face challenges in bringing money and investors into funding the business. Hence, raising capital can take from 6 to 12 months.
Solution: You need to start networking. Seek out networking events and build collaborations and partnerships in your industry.
Also, think of possible ways you can fund your business. If you are a startup in its initial operation, consider pre-seed funding. Here, investors provide pre-seed funds to start your business. These investors may include the founder (you), your close friends, and your family.
Other funding options include seed funding, angel funding, accelerators and incubators, and venture capital.
4. Hiring employees
Picking the person to join your team is stressful. Choosing the right person to help you grow your business should be a decision you should take seriously. It is not enough to find people who can fit specific roles.
Aside from their skills, you should consider their value and cost to your business. You should also think about how they will fit the company culture and your team.
Thus, these are the challenges bringing people into your startup.
Solution: Ask for help from your partner to help you choose people to join your team. Next, make sure you have clear criteria on what your team member should be, as this will guide you in the hiring process.
Outsourcing could also be your solution. Aside from reducing costs, it can guarantee you a quality of service or operations you get from competent professionals.
Your focus should be on your business. Hence, we provide virtual tech teams who can connect with your customers anytime. Click here to learn more!
Check out our blog on outsourcing to learn more!
5. Finding customers
Another critical task that seems to challenge entrepreneurs is finding customers. In fact, this is among the top five challenges entrepreneurs with a new business face. According to the research, over 80% of entrepreneurs find new customers the most challenging part.
This is something that entrepreneurs need to address for their business to take off. There have to be people who need to use and believe in your product or service. Without them, your business won’t bring money in.
Solution: Promote your business! Remember, visibility is vital. Build a solid network and have an active online presence.
For starters, invest in digital marketing for visibility. Having a social media presence is almost a must for all businesses, as most of your potential customers are online now.
You can also attend events and trade expos so you can showcase your product. Branch out and promote actively. It may not bring in customers instantly, but you gotta take a chance.
Cash flow shortages are one of the top reasons why new businesses fail. Hence, good cash flow and financial management are essential to keep your business running.
The thing is, you’ll never know when you can go broke. There will be a day when you make a lot of money, and there will be a day when you make little. Financial crises and government shutdowns could also affect your business as they could freeze all the payments from government contracts.
Solution: Plan ahead! This will help you anticipate your financial needs in the future. Make sure you have insurance and financial reserves in case something unexpected happens. It is always good to have more money than you think you’ll need for your businesses.
7. Finding the space to start your business
Starting a business comes with considering the location of your office. And with that also comes rent and other associated costs like electricity and furniture. Thus, renting comes at a considerable price.
Solution: You don’t need a space to start your business. Why not consider a coworking space? Study says that coworking spaces will save you an average of 32% in rent compared to commercial office spaces. Plus, it the where you can operate best with lesser financial investment.
Related article: Start-Up Office Space: Is It A Good Idea?
Dynamico Space San Francisco helps entrepreneurs to start right.
Yes, launching a new company can be daunting, and there will be a ton of challenges you’ll face as you grow your business. But as long as you follow the solutions, we give you, you are on the right path to your startup journey.
Dynamico Space offers starting entrepreneurs resources like virtual teams and mentorship programs to help you begin. Plus, we provide a flexible coworking space where you can create your path to startup success.
We also provide a virtual office address and conference room for a meeting. If you are interested, contact one of our project managers to book your tour to your potential startup office space in San Francisco. Call us today!