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Entrepreneurship is still a buzzword. But as had been pointed out [You must be registered and logged in to see this link.],
and as many new entrepreneurs must have realized, entrepreneurship is
not a walk in the park (or to the bank). We spoke with a new
entrepreneur, one year immersed into her business, and asked what are
the more difficult aspects of starting a business (for the benefit of
budding entrepreneurs, you may also want to share your experience when
starting your entrepreneurial endeavor; please use the comment section
below).
Dealing with partners. Having fellow shareholders in a [You must be registered and logged in to see this link.],
but it also naturally creates friction. It could be the distribution of
work, sharing of benefits or some other matter. This should be clear to
the partners from the start.
Getting a merchant account. This
enables the business to accept transactions through credit cards.
Credit card companies have different requirements and are doubtful of
new businesses. There’s also an add-on charge to take into consideration
in [You must be registered and logged in to see this link.].
Finding time to be hands-on. This is particularly difficult for someone who has a day job or who has a family. Running a business isn't a sideline, although [You must be registered and logged in to see this link.] would say that the trick is to find an investment that requires less time from you.
Controlling costs.
A start-up business is naturally in the process of creating its market
and building its revenues. The costs, however, are present from day one.
It takes a while before income/sales is breakeven with expenses. Profit
or return on investment (ROI) may even take much longer. It’s important
to set up a good system of tracking expenses and revenues.
Registration and permits.
Not a problem if you have your lawyers handle this (except that it’s an
additional cost). You could, of course, do this yourself (Ed. – see [You must be registered and logged in to see this link.] section), but this entails time and effort, better focused on marketing and revenue-generating activities.
Making your business known.
In short, marketing. How would your target market know that you even
exist? There are many available options nowadays with the internet. The
challenge is to be creative in marketing.
Finding the right personnel.
It’s ironic that despite the high level of unemployment these days,
it’s very difficult to find competent and trustworthy people to work for
you. You could probably do the work during the start of the business,
but this is impossible as the business grows and as you focus on crucial
tasks such as marketing.
Taxes. What are the
taxes to pay? Withholding on income tax? Withholding on rent? Monthly
value added tax (VAT) reports? Annual income tax returns? Deadlines of
filing tax returns? What forms to use? What documents must support the
items in the tax forms? It could be frustrating.
Financing.
Running a business requires capital. It’s easy if you have a rich
family. Banks and other lending institutions are, again, distrustful of
new enterprises.
Competing with big players in the industry.
Marketing your business is one thing; doing that while at the same time
competing with established and highly capitalized businesses is
another. Some say it’s important not to have a head on confrontation
with established businesses. There are a number of strategies discussed
in business books and articles.
and as many new entrepreneurs must have realized, entrepreneurship is
not a walk in the park (or to the bank). We spoke with a new
entrepreneur, one year immersed into her business, and asked what are
the more difficult aspects of starting a business (for the benefit of
budding entrepreneurs, you may also want to share your experience when
starting your entrepreneurial endeavor; please use the comment section
below).
Dealing with partners. Having fellow shareholders in a [You must be registered and logged in to see this link.],
but it also naturally creates friction. It could be the distribution of
work, sharing of benefits or some other matter. This should be clear to
the partners from the start.
Getting a merchant account. This
enables the business to accept transactions through credit cards.
Credit card companies have different requirements and are doubtful of
new businesses. There’s also an add-on charge to take into consideration
in [You must be registered and logged in to see this link.].
Finding time to be hands-on. This is particularly difficult for someone who has a day job or who has a family. Running a business isn't a sideline, although [You must be registered and logged in to see this link.] would say that the trick is to find an investment that requires less time from you.
Controlling costs.
A start-up business is naturally in the process of creating its market
and building its revenues. The costs, however, are present from day one.
It takes a while before income/sales is breakeven with expenses. Profit
or return on investment (ROI) may even take much longer. It’s important
to set up a good system of tracking expenses and revenues.
Registration and permits.
Not a problem if you have your lawyers handle this (except that it’s an
additional cost). You could, of course, do this yourself (Ed. – see [You must be registered and logged in to see this link.] section), but this entails time and effort, better focused on marketing and revenue-generating activities.
Making your business known.
In short, marketing. How would your target market know that you even
exist? There are many available options nowadays with the internet. The
challenge is to be creative in marketing.
Finding the right personnel.
It’s ironic that despite the high level of unemployment these days,
it’s very difficult to find competent and trustworthy people to work for
you. You could probably do the work during the start of the business,
but this is impossible as the business grows and as you focus on crucial
tasks such as marketing.
Taxes. What are the
taxes to pay? Withholding on income tax? Withholding on rent? Monthly
value added tax (VAT) reports? Annual income tax returns? Deadlines of
filing tax returns? What forms to use? What documents must support the
items in the tax forms? It could be frustrating.
Financing.
Running a business requires capital. It’s easy if you have a rich
family. Banks and other lending institutions are, again, distrustful of
new enterprises.
Competing with big players in the industry.
Marketing your business is one thing; doing that while at the same time
competing with established and highly capitalized businesses is
another. Some say it’s important not to have a head on confrontation
with established businesses. There are a number of strategies discussed
in business books and articles.