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By Peter Wasmer, Founder & CEO of ProValet
People often talk about the glamorous side of entrepreneurship, but they seldom mention the unglamorous reality. Sure, being your own boss and having the freedom to work on your own schedule are great, but there’s a lot more to it than that.
According to HubSpot, dissatisfaction with corporate America is the top motivation for someone to open their own business. 47% of people say that they became entrepreneurs because they wanted to be their own boss.
Most entrepreneurs start as the founder of a small business, however, which presents unique challenges and requires a LOT of hard work. In fact, Hubspot goes on to state that 70% of small business owners report working more than 40 hours per week, with 19% working more than 60 hours per week.
Clearly, being an entrepreneur if not for the faint of heart.
What Successful Entrepreneurs Need to Know About How Entrepreneurship Works
Sleepless Nights are in Store for Entrepreneurs
One of the biggest challenges of entrepreneurship is the lack of sleep. When you’re first starting out, there’s so much to do and so little time to do it. This can result in some seriously sleepless nights. As the company grows and the business can staff up with more employees, things become a bit easier, but the need to work around-the-clock seems to always persist.
Unschedule-ability May be a Struggle
Another downside of entrepreneurship is the unschedule-ability of it all. Sure, you technically have the freedom to set your own hours, but in reality, entrepreneurs are often working day and night. This can be tough for many to manage, especially when there are family or other commitments. It’s important to set boundaries and plan time off if you want to stay motivated.
Economic Development Issues & Financial pressure
Juggling the financial pressures of entrepreneurship can be tough – especially when it comes to economic growth. On one hand, you have the pressure to make enough money to keep your business afloat. On the other hand, you have the pressure to reinvest in your business to help encourage economic growth. This can be a lot of stress to handle. Especially during today’s inflationary times, be sure you have a handle on your finances and raise prices when needed.
Challenges Facing Your Business Venture + Constant stress
Perhaps the most challenging aspect of the situation entrepreneurs create for themselves is the constant stress. There’s always something that needs to be done and there’s always the risk of failure. This can take a toll on your mental and physical health. Every day there is more and more work to be done, and this typically falls on the small business owner’s shoulders. Once again, be sure to take time out to re-charge to prevent burnout. Even famous entrepreneurs such as Bill Gates and Elon Musk know they need to chill occasionally!
How To Create Stability Via Social Entrepreneurship – The Emotional roller coaster
Entrepreneurship is an emotional roller coaster. One day you might be on top of the world and the next day you might be questioning everything. This constant ups and downs can be tough to deal with. Monitor your mental and physical health and don’t be afraid to talk to a professional when the going gets tough. Having a strong co-founder can help tremendously.
Self-doubt Challenges
One of the biggest challenges that entrepreneurs face is self-doubt. When you’re constantly questioning your decisions and second-guessing yourself, it can be tough to stay motivated and focused on your goals. This can lead to some major setbacks and roadblocks. Whether you’re just starting out or you’ve been at it for a while, entrepreneurship is not for the faint of heart. It’s a demanding and challenging journey that comes with its fair share of ups and downs.
Competition is Keen
Competition is one of the biggest challenges that small businesses face and affects economic growth. In today’s market, there are so many options for consumers to choose from. This can make it tough for small businesses to raise money, stand out, and attract customers. Those who own businesses, including those with new venture as well as established firms, need to focus on marketing and customer retention by having a solid plan in place. Communication is critical.
Technology is Ever-Changing
Another challenge that small businesses face is the ever-changing new technology landscape and how it affects day-to-day operations. With technology constantly evolving, businesses must continuously monitor necessary resources, new ideas, new operating systems, and adapt to stay ahead of the curve with the latest and greatest operating systems that can add more value. This can be a challenge for even the most tech-savvy new businesses. Utilize new ideas and the latest and greatest software and apps to ensure that your business thrives.
Healthcare Challenges & Healthcare Reform
Small business entrepreneurs must contend with the challenges of healthcare reform and rising insurance costs. Recent changes have had a major impact on the healthcare industry and have made it difficult for small businesses to keep up with the new regulations and navigate the ever-changing landscape. Many entrepreneurs find that self-employment leads to a struggle to find affordable health insurance. Taking advantage of available resources is important.
Saving for Retirement
As a small business entrepreneur, you face a unique self-employment challenge when it comes to saving for retirement. Unlike traditional employees, new firms don’t have access to employer-sponsored retirement plans and there may be financial risk. This can make it tough to save enough money for retirement. There are several ways that entrepreneurs can save for retirement, but it can be tough to do on your own so you may need to turn to economic development resources in your local community. You might have to get creative and find ways to cut costs in other areas of your life so that you can save more for retirement. Business schools also have strong resources to support self-employed people and promote social entrepreneurship.
So, there you have it — the unglamorous reality of entrepreneurship. If you’re thinking about becoming an entrepreneur, it’s important to be aware of the new challenges and business opportunities that come with it. While there are some great benefits, there are also some significant challenges that you’ll need to face. But if you’re up for these new challenges – and a bit or risk taking – entrepreneurship can be an incredibly rewarding experience and it’s great to promote entrepreneurship via new firms. It’s not all glitz and glamour and you need to be prepared for some sleepless nights and stress-filled days. Be sure to go into it with your eyes wide open and prepared for anything.
About the Author:
Serial entrepreneur Peter Wasmer is a Naples, Florida-based expert who helps pragmatic small business owners manage like a pro. He understands both sides of the business coin and uses his deep experience to bring constant innovation to small businesses.
He’s the first to say that his talents are based on a keen understanding of the ins and outs of entrepreneurship. Never happy working for someone else, he has used his skills in numerous endeavors, from a clothing line to equipment leasing to app-building.
Being a serial entrepreneur doesn’t always mean being successful; he admits that his clothing line “failed miserably.” But the entrepreneurs who make it are the ones who dust themselves off and get back to work. “You’re driven by your own dreams,” he says. “You’re not driven by somebody else telling you what to do.”
Highlights of his 25+ year career trajectory include:
Managing sales and marketing at Somerset Capital Group, an independent equipment leasing company with a portfolio of more than $650M, ultimately selling the business in December 2007.
Building Chrome Capital into a national finance platform that transformed powersports by getting more riders on more Harleys, a business he launched in 2011 with less than five staff members and expanded to a 50-person matrixed cross-functional team by 2016.
Introducing the ProValet.io app to help RISC™ (Regular Interval Service Companies) businesses save time and money via easy-to-use technology. The app streamlines scheduling & dispatching, automates invoicing & collection, effortlessly drives customer interaction, and offers other processes to help companies focus their energies on more life affirming tasks.