If you consider yourself an entrepreneur, you’ve surely experienced some sleepless night especially in the early days of founding a project. Being an entrepreneur means that you are always going to have constant worries because of the uncertainty of having not enough clients. Coronavirus pandemic has made the situation even worse. If your business has been hit by the current recession you only have two choices: to keep fighting or closing your business and stop making losses. In this article we want to talk about three fears that entrepreneurs must overcome if you want to succeed.
Business owners are absolutely critical to the United States economy and they help create jobs with their adaptability. According to Small Business Administration, they hire 60 million workers, or 47 per cent of U.S. workforce. Luttering solopreneurs deserve praise and sympathy as they tackle constraints of coronavirus, a sluggish economy, taxation and regulations, and personal health and family affairs.
There are growing concerns here that successful entrepreneurs would have to address in order to go to the next level.
Confusion, and nights without sleep.
Confusion emerges from both sides for companies who have yet to establish themselves on the market. There’s the market crash; the need to increase cash flow to pay all the bills; and the need to distinguish and deliver a good service or product to nullify competitors.
According to SurePayroll’s 2020 Small Business Worry Index, the top three issues for entrepreneurs are the environment, cash flow, and (in that order) regulations and taxes. Three in four were worried with payrolling, and a comparable proportion were dissatisfied with their need to deal with laws and taxation.
I recently spoke to Ryan Bartlett, founder of True Classic Tees, a Los Angeles based online store. Bartlett said that it took several years for the fashion company to innovate and realign it before he eventually discovered the perfect combination of high quality clothing at a cheaper price range. He always had to track down the best distributor and shared in the formative days that he’d lost a lot of “blood, tears and sweet.”
They also succeeded in producing top-notch customer satisfaction and second-to-none T-shirts at cheaper rates than the competitors. Now that Bartlett and two other founding members have established themselves, they donate a part of the profits to homeless war veterans. It has provided them and staff a strong incentive to thrive as well as a renewed sense of purpose in business.
Cravings to get back into a safe 9-to-5
Entrepreneurial spirit is considered during good days as a source of revenue which offers innovation and more personal liberty. But other entrepreneurs are inclined to search for the conveniences and stability of a 9-to-5 office job in a recession.
A May 2020 Inc.com survey of Small Business owners shows that coronavirus has adversely affected 90 percent, with one-third stating they should have at least $150,000 to get out of existing conditions. In fact, 87 per cent have registered for relief funding from Covid-19. Others are anxious: in one month, 35 per cent needed money to survive the Coronavirus pandemic downturn.
There is nothing bad like running out of cash for an entrepreneur. It makes people imagine greener pastures in the city, where steady work offers a sustainable life for a solopreneur and his / her children. There is no replacement for clear thinking and due to the limited information available, one would have to make the most appropriate decision.
Don’t go all in and become risk-averse
Practically all solopreneurs are gung-ho at the onset of a company about making millions and living peacefully. Yet adversity and rational thought change the outlook and behavior of them. But with so many hidden factors, it can be hard to see what is behind a documented road map for the first year.
There will be frequent urges at certain times in an entrepreneurial trip to avoid taking cash from personal savings and retirement plans to make payrolls and pay bill collectors. Any business owner (who are certainly influenced by frightened spouses) would second guess that having a second mortgage on their home was a smart idea. Or that tapping into education funds for their children was ethically permissible. Or sell bequeathed belongings from late grandma.
As per a 2020 Guidant Financial study, over a third (37 percent) of entrepreneurs use savings to finance their project while 13 percent utilize their 401(k) for it. The strain to constantly increase the cash flow becomes too much and others are breaking the cord to return to being a paycheck receiver. Some are starting a new, more profitable business. These are all the hidden compromises and tormented choices that evade the textbooks of professors of business school who teach business growth but are unable to convey what the real distress can feel.
In an old interview, Apple founder Steve Jobs stated entrepreneurs must do what they do, as the journey will be incredibly challenging at some times. Love helps you get over it. An entrepreneur has had to make brave choices for every profitable business, and also stick to an unrelenting conviction that his company will survive despite the doubters and concerns that ruin his sleep. Americans must cherish such strength from those on whom a large part of the economy relies for creating new jobs.