Starting up your own business is not as rosy as some of us might think. The reason being we only hear about success stories, which overshadow the hardships, stress, and failures young entrepreneurs have to go through. An award-winning article published in Inc.com illustrates this point brilliantly and highlights the price entrepreneurs have to pay and the sacrifices they have to make to get their dreams off the ground.
The stress entrepreneurship brings to the table can be overwhelming and might take its toll on both the psychological and physical health of the entrepreneurs. Forbes article endorses this point. In this article, we will shed light on the key factors that contribute towards entrepreneurial stress. Additionally, you will also learn ways to equip your armory with the right weapons required to counter these stress-inducing elements.
Unavailability of Funds
Whether you are seeking seed funding for your startup to get it off the ground or want to acquire funds for expansion purposes, financial problems have always been a pain in the neck for entrepreneurs. There are many funding sources which entrepreneurs can exploit to get their startups off the ground. Remember that funds are a limited resource so be very prudent and wisely allocate them. This way, you can overcome financial problems and save your startups from running out of cash.
Poor Work-Life Balance
Another common problem that plagues most entrepreneurs of today is the poor work-life balance. Contrary to the traditional nine-to-five job, running a startup demands round the clock commitment. This negatively affects your personal life and does not allow you to spend quality time with your family and friends.
As a result, relationships start to suffer which leads to more stress. To maintain a healthy work-life balance, it is imperative that you leave work-related stress in office and do not let it hitch a ride with you to your home, otherwise, this work-related stress will haunt you at home as well by creating conflicts between you and your loved ones.
Competitor Dominating the Market
Most young entrepreneurs keep a close eye on competitors and some even get obsessed about what their competitor’s next move might be, this can lead to entrepreneurial stress. It hurts even more if the competitor is doing very well and making market entry much more difficult for you.
Jeff Bezos, Amazon CEO, advises young entrepreneurs to focus on customers, not competitors. He once said, “The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.” Instead of focusing on your competitors, you are better off concentrating your energies towards delivering customer-centric products.
Dealing with clients can be a nerve-wracking experience for young and inexperienced entrepreneurs. These clients are never satisfied with your work and the frequent changes they demand from you are a big nuisance. It can put off your whole team from achieving their targets and lead to chaos.
Before commencing a project, get the scope of the solution finalized and ensure every stakeholder is on board and on the same page. This will minimize the chances of frequent reworks and will enable you to focus on the job in a much better way. Negotiate with clients and keep them informed about the progress but do not allow them to get on your nerves.
Retaining Talented Individuals
Although job security statistics varies greatly with geographical locations, employees are switching their jobs in search of better opportunities. This might not go down well with startups and entrepreneurs, as they will have to work harder to retain their talented team members. Your startup must provide employees with the growth opportunities they demand.
Depending on the nature of jobs, switching trends and high employee turnover rate varies. Companies that have a high turnover rate struggles to stay afloat and usually feel the pinch of losing dedicated team members. A successful manager always knows how to retain their assets. He does that by appreciating their good performance and celebrating little and big successes they achieve together.
Fear of Failure
With around half of the startup failing to survive the five-year mark, the fear of failure is imperative. That is not all, if you manage to get past first few years, the chances of your startup crashing decreases with each passing year. This means that seeing off the initial period is critical but fear of failure will not help you do that. In fact, it speeds up the process and leads you to failure. Get out of your shell and take calculated risks. This way, you can not only survive but also make your startup thrive.
Inability to Expand Your Business
There is no denying that we are a greedy lot. Even young entrepreneurs who have just stepped into the world of business want overnight success. Keep in mind there are no shortcuts to success. More importantly, startups who try to expand too quickly often find themselves consuming their funds a lot earlier than anticipated. This makes it very tough for them to finance daily operations and eventually affect their survival in the long-term.
You must be aware of the common adage,“Slow and steady wins the race”. The same holds true in the case of expansion of startups. Instead of stressing yourself out by thinking about expansion plans, you should take baby steps and focus building a good reputation first. Once you’ve achieved this then start planning for the expansion of your operations.
Another common issue that comes to haunt budding entrepreneurs is unforeseen risks that occur due to poor risk management. Some risks can be controlled while others are out of one’s control. It is the controllable risks that many entrepreneurs ignore and due to this attitude these risks become a serious threat to the startup’s survival.
When it comes to risk management, it is better to have a proactive approach rather than reactive approach. Keep identifying risks, mitigate and prevent risks to keep your startup functioning smoothly. Come up with a well-thought risk management strategy in place to cope up with future challenges and you will succeed in neutralizing the risk factors.
Whether it is about maintaining a healthy work-life balance or securing funds for your startup or dealing with nerve wrecking clients, you can easily do all that by making small adjustments. Do not fret over what your competitors are doing just stay focused on the risks that could negatively affect your startup. Get rid of the fear of failure and do not make the mistake of expanding too quickly. Want to drive your startup to success, get over the entrepreneurial stress by following the advice given above.