How to Overcome the 3 Biggest Obstacles for Entrepreneurs

Starting a business is a great way out of the rat race. You get to be your own boss and have the joy of solving a unique problem that the world faces. The whole process of starting with an idea and turning it into a product or service that the public loves is incredibly fulfilling. 

That said, the journey isn’t without its share of struggles. You are going to face many obstacles, and unsteady financing is a common problem. Statista, tells us that 44% of business closures were due to this very problem. Likewise, poor timing and disharmony among investors and the team accounted for 21% of business closures each. 

In this article, let’s look at three obstacles that you might face and how to deal with them. Let’s dive right in. 

1. Being Underestimated and Dismissed by Investors

It’s no secret that one of the biggest frustrations that entrepreneurs face is the difficulty in scaling up. This is particularly true with younger founders who don’t really have a lot of experience.

Cem Hasoglu, the Co-Founder and CEO of Puzzle Agency, says that one of the challenges he faced after starting his company at a young age was skepticism. 

While there are many ways to counter this, Hasoglu advises us to share industry-specific insights during conversations with clients. That said, you might still find it disappointing to see the lack of faith people have in you as a young entrepreneur.

It can feel like even with a revolutionary idea, your age ends up tanking pitches with investors and clients. 

Hasoglu’s recommendation of demonstrating that you know what you are talking about is helpful, but it may not always be applicable. It is far more helpful to strategize and try to predict the kinds of doubts that investors will likely have about your pitch.

At least then, you can be on your guard and ensure skeptical thoughts don’t have grounds to even arise. 

2. The Logistics of Growth and Expansion

Many times, growing your business gets tough because of all the logistical complexity involved. For instance, dealing with international payments and overseas clients can get messy really fast. There are transaction fees that start adding up, and the bigger your business grows, the more of a problem these tiny things become. 

The whole process can get far more complex and problematic than it needs to be, which is why so many business owners use services like PayPro Global. Honestly, getting a third party to help manage not just transactions but everything that comes with global growth is going to save you many sleepless nights. 

The amount of energy and effort you need to do everything by yourself is not simply sustainable. So, be smart, and recognize when it’s time to get outside help. Similarly, many young entrepreneurs forget that every new endeavor in a business requires capital backing.

There’s this misguided notion that once a business finds its footing, it will be able to grow organically and fund its future expansion. However, the reality is that expanding your business, especially in international markets, especially at the start,  will require a lot more funding than you imagine. 

It’s going to be important that you recognize these facts so you don’t bankrupt yourself just two years into your still-stabilizing business.

3. Not Planning a Solid Exit Strategy

No one really wants to think about what happens when acquisitions occur. Yet, according to the Harvard Business Review, they are far more common than IPOs, with 30 acquisitions happening for every IPO.

It’s sad to see so many entrepreneurs fail to plan for this eventuality until it’s too late. Unfortunately, the reality is that many entrepreneurs will overestimate their chances of success.

That shouldn’t make you feel like giving up though: instead, simply learn to factor it into your plans. You need to accept that there is a chance that your business may have to shut down. If that happens, try to learn from the experience.

What you don’t want is to be financially bankrupt and unable to move forward or start something new. 

So, even if it feels depressing, do put in some time thinking about your exit strategy. As you may be aware, the most common ones tend to be IPOs, mergers, liquidations, and management buyouts.

It’s going to be a good idea to speak to others with more experience and even get a consultation if you need to. It may not seem like a priority, but it’s really important in the long run.

At the end of the day, obstacles are a part of the cost of being your own boss. There’s a reason that so many people are comfortable working regular nine-to-fives. It’s because the alternative comes with so much risk and hard work. 

However, running a business is certainly possible. Don’t let anyone tell you otherwise. You just need to be prepared for it not to be a cakewalk. Respect the hustle, and you will find the success you are looking for.