If you’re one of the millions of Americans who participated in The Great Resignation, leaving the workforce in search of more meaning, better hours, or better pay, you may be considering starting your own business.
The chance to run your own small business allows you to do something worthwhile with your life, become financially independent, and help consumers in the process. Of the millionaires in America, nearly 75% are self-employed, The Millionaire Next Door writes that “self-employed people are four times more likely to be millionaires than those who work for others…" because when you work for yourself and have a great idea, all the profits you see go directly into your bank account.
However, small business ownership doesn’t come without obstacles. In this article, we’ll go over the top 5 most common problems that stop people from starting their own business, and give creative solutions to help.
1. Nothing To Fear Except Fear Itself
The transition from employee to small business owner can be scary but letting fear dictate your life’s path is a surefire way to end up filled with regret. Instead of letting the fear factor keep you as an employee, look at your business as a process. Write out actionable steps that you can take each day/week/month/year, and create manageable goals that you can reach. Remember, you don’t have to do everything all at once, just take it one step at a time.
Along with this is the fear that your idea simply isn’t good enough, but often we’re our own harshest critics. Try to silence the voice inside your head that says you’re not ready or you need more time. Waiting too long can mean you miss your moment, and you’ll kick yourself when you see someone else make millions off an idea you had two years ago. You don’t have to be a genius to have a genius idea, sometimes simplicity works just fine.
2. Exit Strategy
If you’re still working as an employee, the way you leave your current employer can help or hurt the future of your business. This is where coaches can help with strategy. You want to exit your existing job on good terms and have a mutually beneficial relationship moving forward. Your old company can either be an ally or an enemy, and a lot of it depends on how you play out your departure.
3. Show Me The Money
Part of knowing your business will work is understanding how much it will take to get started, to continue operations, and how much you’ll need to earn to start turning a profit. A million-dollar idea means nothing without carefully planned out startup expenses, which includes the personal expenses you’ll need to survive. If you’re not great with finances, you absolutely must have help because your financial planning is the single most important set for starting your own business. Begin with a simple startup expenses worksheet or create a business plan with the costs involved.
4. Planning What’s Next
Once you have a strong business plan in place, you may think you’ve overcome the most difficult hurdle, but in fact, the steps that follow can be just as challenging. From incorporating, branding, bookkeeping, taxes, employment laws and social media to knowing how to grow your customer base, you may require outside help finding solutions to these challenges.
Coaches who have experience in entrepreneurship can help to guide you in the right direction and avoid costly missteps. Don’t feel like you have to know everything about everything, the important part is that you know your strengths and weaknesses, and ask for help from the right people when to help you in the areas where you’re less knowledgeable.
5. Brand New Branding
Part of running a business means branding yourself or your company in a way that will be identifiable to the consumer. Bad branding can lead to less consumer trust forcing you to sell your product or services under their true value. If you aren’t a naturally artistic person, and many of us aren’t, working with a professional designer or branding expert can help create a cohesive look and consistent brand, from your website to your socials and marketing material. It's relatively easy, and inexpensive, to have someone put together a beautiful branding package for you, that shows you are serious about what you do.
We hope we’ve given you creative solutions to the most common things that hold people back from becoming self-employed business owners, we can’t wait to see what you create!
For more information and resources for aspiring solopreneurs and small business owners, check out our Business Formation Package. We designed our turn-key startup solution — complete with a comprehensive online course and guided coaching sessions — to help aspiring entrepreneurs like you get their businesses off the ground, quickly. Contact us to learn more about our program and sign up today.
For more information and resources, head on over to www.mydreambridge.com.