While many people dream of starting their own company, not many actually take the plunge – but why? What holds them back from trying to make a go of things in the business world? Similarly, not all companies survive in the big bad world with many start-ups failing within the first five years, so let’s take a look at four of the main obstacles that get in the way of those business dreams.
1. Lack of budget
There’s no doubt about it; starting up a business costs money and while you can get promotional materials made cheaply from the likes of Helloprint, there’s still stock, rent, electricity, transport, technology costs and other expenses to consider. All these overheads can either put people off pursuing their ambitions or can make it extremely difficult for companies to get off the ground. If you are going to set up your own business, therefore, it’s important to keep costs to a minimum, perhaps by starting up at home or partnering with someone who can share the financial burden.
2. Psychological barriers
It’s thought that psychological factors have a major impact on economic behaviours.
In short, if you’re not in the right state of mind to start up a business the whole idea can seem way too complicated and difficult to manage. Many budding entrepreneurs, for instance, worry about failing and therefore never get round to getting their own company off the ground. What’s more, other people believe they need to write a thorough, detailed and accurate 50-page business plan before they stand a chance of success and again this stops them from putting an idea into action. Some businessmen/women also strive to be perfect and are put off when they realise perfection doesn’t often exist in the business world.
3. Competition
Before setting up your own company, you must suss out the competition. If you go into business without knowing who you’re up again, there’s a large chance your organisation won’t succeed – as you’ll need to work extra hard to prize loyal customers away from what they know and love. The best way to stand out in your chosen industry is to find a niche market and put your own unique spin on what you do. If there are a lot of posh, eat-in Italian restaurants in your area, for instance, perhaps starting a mobile/takeout Italian catering service could be the way to go.
4. Negative reviews/feedback
In this digital world we live in, it’s quite easy for a handful of negative reviews from influential people to destroy a company. Businesses are constantly battling to save their reputation and if you don’t have the know-how, strength or means to defend yourself it could mean the end of your business. If you’re determined to succeed, one of the best things you can do is to be honest and open with your clientele, both face-to-face and online. If you mess up, simply admit your mistakes, address them and explain how you’re going to rectify them. It’s all about handling the situation in a calm, professional way, but get downhearted and you might be tempted to give up.
There are many things that can get in the way of business success, but if you have a dream, try to do your best to make things work – even if it means starting really small while continuing in a 9-5 profession.
