A startling amount of people want to start their own business. Why? You may assume it’s because everyone has the dream of being a renegade, billionaire entrepreneur. And, for sure, that will drive a few people. It may even be somewhere on the minds of everyone who wants to start their own company. But, for the most part, people want to start their own companies because they want to work for themselves. To be their own boss. To avoid being under the thumb of someone else.
So why aren’t more people starting businesses? Why haven’t you started your own company yet? Here is a look at some of the more common reasons that people don’t rush into this endeavour.
Not having the right idea
Well, this is a pretty “fallen straight out of the gate” one, here. You want to start a company but you don’t actually know what the company is going to do. Or maybe you do know what the company is going to do, but you don’t think you have a particular hook that’s going to really grab consumers. If your problem is the first one, then you need to go right back to that drawing board. You can’t just like the idea of starting your own company. You need to have a killer idea that is going to get you customers before you start thinking about anything else. Build your company around the idea, not the other way around.
If the problem you’re having is the second one, then at least you’ve gotten that far. But it sounds like you need to figure about what your unique selling proposition is. What is going to make people come to your service and not a similar one? How are you going to make your product less similar to another one? Follow a guide on defining your unique selling proposition. With your USP better defined, you’ll have more confidence to move forward.
Lack of capital
This one is a massive kicker; the roadblock to most prospective companies with a great idea. This is probably the one that most people struggle with. After all, as the adage goes, you’ve got to spend money to make money! If you don’t have the capital (that is, the initial funds with which you will begin your business), then your idea may be dead in the water. Some people get scared off at this point. They feel that the capital has to be some large and unholy number. And, in some circumstances, that may very well be true. It depends what your idea is. So assess your idea and ask yourself how much you’d realistically need. You may not require the millions upon millions of dollars that you may have initially assumed.
So how the heck do people get capital? Well, if you take your idea to the right people then you may end up with big investments. Of course, this may require more connections on the inside than you have. And maybe you’ve even tried to talk to professional business people who have all rejected your idea. The trick here is to look towards other potential investors. They don’t all have to be suits. As you may have heard, crowdfunding is a very popular and modern way of attaining capital.
But you’ve probably seen the types of projects that get big bucks on Kickstarter. They’re often video games, sometimes movies, sometimes gadgets. If you’re planning to work in those arenas, great! But if you’re not looking to get into entertainment, then there are other options. Peruse a list of more business-oriented crowdfunding platforms to see if the right option is there for you.
Unable to get a loan
Of course, the alternative to modern crowdfunding is simply to get a loan. But some of you may have already attempted this and found my use of the word “simply” inappropriate. Many people think that getting a loan is fairly easy and that all one has to do is ask their bank. They seem to think that the only prevention is their own fear or ethical stances. The fact is that there are a lot of potential roadblocks when it comes to getting a business loan. And if you’re trying to start up a company, then it’s likely that it’s all going to come down to how you look as an individual to a creditor.
The most common reason for loan requests being rejected is that the applicant has a bad credit score. If that applies to you, then you’d be forgiven for thinking that your dreams of getting a loan are dead. First of all, how many creditors did you go to? Did you only go to one? Two? Here is something you must know, and it’s something that creditors may have misinformed you about. You do not have a universal credit score.
When you apply for a loan, a creditor will assess your financial records in order to see how trustworthy they find you. How likely it is that you will pay them back the money you borrow within the time frame that they determine. They will make this judgement based on many factors. But some of those factors will be unique to that creditor. Other creditors will use different criteria. In short, a bad credit score from one company doesn’t mean that you’ll definitely get a bad score from another. So be sure to visit a few creditors. However, if you have gotten back maybe three or four bad credit scores, then you may need to look into fixing the issue. Consider working with one of the best credit repair companies to get your scores looking good again.
Worried about tax and regulations
This one may surprise you. The reason it may surprise you is because there’s a possibility that you haven’t even thought about this. When you start a company, there are a lot of legal issues you have to deal with. You have to make sure you contact the government and/or national revenue agency. You need to arrange the right tax codes with them, ensuring that they know you’ve started a business and what kind of business it is you’ve started.
Do you feel that this is something that would overwhelm you enough to not want to play the own-boss game? If so, there’s a fairly simple solution. Hire an accountant! You can look into getting a full-time accountant or financial controller for your business. That, or you can hire a part-time freelancer to help you with the initial stages. Don’t be put off by this step when it’s so easy to get the help you need.