In a recent poll by Gallup, potential entrepreneurs were asked whether any of seven provided issues factored into their reasons for not attempting to start a business. Out of the seven reasons, three main barriers stood out from the pack. Here are some resources for overcoming the top barriers entrepreneurs face in taking on a new business venture.
#1: 84% You like the security of a steady income.
I remember when I first contemplated quitting my job. The agony of deciding whether or not I should do it, and then when. The anxiety or wondering how I would ever make as much money as I was working for someone else. The relief of giving notice to my boss. The panic that set in the first week I didn’t receive my paycheck.
All truly successful business owners understand that their success is based on a simple equation: When revenues are greater than expenses, the difference in the two numbers is profit or earnings. Many companies appear to be turning a profit on paper in complicated reports and quarterly earnings, however, what actually goes into the bank account determines if a business makes it through the next month.
#2: 68% You do not have enough personal savings to start a business.
Starting a new brand requires endless amounts of time, energy, and most of all funds. It can be difficult to define a budget for building and maintaining your brand. But it’s a good idea to prioritize your spending. Before you spend any money, be sure that what you choose to invest in will help produce the products you envisioned.
When I first started my apparel line, the most important goal besides the design and quality of my brand was to have a website that reflected what my brand was about, was SEO compatible with clean images, and current with today’s E-commerce competition. Guess what? I didn’t even know what that previous sentence meant until I learned how to build my site on a budget (under $500!) all by myself.
#3: 66% You worry about the odds of success of a new startup are very low.
When Wei and I launched our women’s outerwear brand Avantūr, we started with coats because we loved them, and because they were the product that best represented our brand. Bold, adventurous, architectural — so much about one’s personal style can be gleaned from one’s coat!
But, two years in, our love of coats and our customer data have crashed head on. After analyzing our website and online shopping platform data, sales data and anecdotal customer feedback, we learned that the data doesn’t lie. In fact, it’s been critical to help us make a strong, numbers-based rather than emotional decision to change our product mix and revamp our merchandising strategy to drive more sales.
Panty Prop has been completely self-funded. I did everything from pure natural passion to empower women, without any idea of a new concept would even make a dime even. Since launching PantyProp in November 2015, we have gone through 4 production runs and sold out every time. Once the leak-proof swimwear hit the website, it went viral and sold over 3,000 in 2 weeks and 15,000 units in a month.
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