We all want to start small businesses for the
personal satisfaction, use one’s creativity, be one’s own boss and financial
return in the future. Small businesses create jobs; innovate (come up with new
ways or products, i.e. something better and cheaper) and create opportunities
for others. One will face many challenges as they try to start their own business.
If one carefully plans and expects these challenges, one can easily overcome
them.
1. Security -
This has led to many entrepreneurs to come up with different ways of combating
crime especially theft and burglary. One way being to hire security guards or
insure their businesses, which guarantees security, but increases the cost of
setting up the business. In some other cases, they prefer to set up their
business in places like near a police station which sometimes is not a good site.
2. Capital –
It is one of major challenges that entrepreneurs face; many businesses cannot
start without capital it is the engine of the business. One can raise capital
through one's saving, contributions from friends and family, loans from banks
and investors. Since they do not have a proven track record, no product or prototype
this leads to potential investors and banks to become hesitant to invest or
give out loans. They want to deal with established businesses where there is
minimal risk and guaranteed their returns. Entrepreneurs should communicate clearly about
their idea supported by a well written business plan that will help attract
outside funding.
3. Uncertainty of the prevailing
market condition - No one can tell for sure about what will
happen the next minute; there is a chance that tomorrow will be a good day. Entrepreneurs
cannot be 100% sure about the market conditions which may cause them to change
their plans, avoid doing things and sometimes shift their focus. They want the
surety and confidence that there is a market for their product or idea before
they start. This is the worst fear and reason to why many small businesses
never even get started.
4. Change in trends -
The 21st century customer is the most advanced customer with ever-changing
tastes and preferences. What is hot today may have no value to the customer
three years later. Heavily influenced by technology or change in lifestyle;
this may make small businesses either bankrupt or profitable. This may lead to
entrepreneurs to procrastinate when it comes to starting their business.
5. Risk –
Every small business involves risk and not everyone have the guts to handle. In
starting a business, it involves having no salary for a few months and no
revenue; very few people a willing to take such a risk. They better keep their
well-paying jobs than start a business.