Being an entrepreneur is a dream that seems so ideal for many of us. After all, it is a way to make a lot of money, run our own businesses, and be our own bosses, right? Well, that’s a bit simplistic and part of the reason why being an entrepreneur is so difficult to begin with.
While there are major benefits to be had from being an entrepreneur, there are definite challenges as well. For one, the responsibility for the success or failure of the endeavor falls on the shoulder of the entrepreneur.
Being a successful entrepreneur also means longer hours, taking on many hats, and having to continue to be ahead of the curve. We will get into those challenges a bit more in depth and shine a light on just why so few entrepreneurs wind up being successful.
It is no secret that entrepreneurs put in long hours and wear many hats of responsibility. What so many new entrepreneurs struggle with is managing that time effectively. When trying to take on all of these things, certain responsibilities can fall by the wayside.
Proper time management is essential for a successful entrepreneur. More often than not, they tend to overextend their time and abilities, taking on far too much for one person to handle. Instead of focusing on the things they are capable of handling, they wind up doing a subpar job in many areas. That is one of the quickest paths to failure.
It is important for the long-term success and reputation of their aspiring businesses that time-management skills be implemented. Furthermore, there must be a balance between home and work lives. Even the most efficient entrepreneur needs to take time to themself to prevent burnout from happening.
In the video below, entrepreneur Erin May Henry goes over the following 4 strategies we all need to manage our time better:
- Start by eliminating things that stop you from being successful
- Break up your day into chunks of time for specific tasks
- Automate and schedule as much as you can
- Mitigate distractions
Perhaps one of the biggest issues that entrepreneurs struggle with is finances. You know the old saying, “it takes money to make money.” Well, that exists for a reason. And not having the proper capital to start out with is one of the biggest obstacles plaguing aspiring entrepreneurs.
It can be difficult to raise the required capital to start a new business, even in the hottest of industries. After all, those with the capital to lend want to ensure that their investments are as sound as they can be.
Even after the business becomes established, it can be difficult for entrepreneurs to get things such as lines of credit or loans. This is because banks tend to set very high eligibility requirements when it comes to small-business owners. As a former bank Compliance Officer and Auditor, I can tell you that it is tough to get loans when no one knows you.
Entrepreneurs also tend to face an uphill battle before profitability is possible. Facing years of losses, as well as little to no pay at the beginning for long hours, can be too much to overcome for some entrepreneurs. This is not to say that they are all money losers to start, but there is a very good chance of that happening.
I personally believe in hustling as much as needed to generate the money you need to get your business from point A to point B. In my case, I have set up clear and specific financial goals I want to achieve every year.
For example, in the year 2021, I need to make $10,000 mainly to pay for writers to get the number of articles I want for site #2. As you can see on my page How Much Money I Have Made, I don’t mind working on various gigs to achieve this goal.
A Lack of Focus
Many entrepreneurs tend to be the type who brainstorm constantly, looking for new ideas on how they can not only capitalize on the money they have but make more going forward. And that is a good trait to have, but that lack of focus can also be detrimental.
A new business needs the right amount of attention to see it through to success. That lack of attention can leave areas of the business without the attention that they require. As the entrepreneur, it is their job to hone in on the important aspects of the building and see them through.
Those who tend to just bounce from idea to idea, never get off the ground. They instead mire in mediocrity before moving on to the next great idea that will certainly work. But that lack of focus is what will keep bringing them back to the brainstorming stage again and again. Some call this the shiny object syndrome.
Self-Motivation Is Key
Starting a successful business requires more than a few things. We can see that by the items listed above. Those coming from the working world, where they have a routine and set schedule that they can follow, are often shocked by the schedules that entrepreneurs keep.
When you are self-employed, as entrepreneurs are, there needs to be that daily motivation to wake up and get things done. Without that drive, businesses will never get off the ground. Some are natural self-starters and have no problem doing so. Others, however, struggle with finding the motivation to press forward.
There is no time as an entrepreneur to procrastinate. Doing so likely means putting off the time before a paycheck is palpable. And since entrepreneurs are paid solely for their success and productivity, that can be a major problem.
Here is a motivational video by Patrick Bet David, where he lays out “the reality of entrepreneurship” and gives a sense of what it takes to succeed as an entrepreneur.
Starting a Business Is Scary
Taking on the financial risk, quitting a job, and facing a new business’s uncertainty are all scary propositions. Some entrepreneurs fail simply because the fear becomes bigger than they know how to manage.
While it is easy to say “be fearless” when it comes to entrepreneurship, it isn’t that easy. But at some point, a successful entrepreneur gets over that fear enough to take the leap and begin putting in the work. Only then can a potentially successful endeavor begin.
It Is a Balancing Act
The thing to keep in mind is that being a successful entrepreneur is not a simple formula. Even the most motivated and focused individuals have businesses that fail. It is the way of the world and the risk that entrepreneurs are inherently undertaking.
But some traits can set anyone up for an improved chance of success. Focusing on the core ideals, ensuring that things get done, and finding a balance are just a few of those things. Achieving success is also about patience and a willingness to see things through.
No one makes it on their own. There is help along the way. There is a focus on making that idea or business the best it can be. In the end, that is what a successful entrepreneur needs.