Embarking on your independent journey comes with many advantages, and this is why entrepreneurship sounds like a perfect scenario for so many people. But it also means you will need to solve unexpected problems, overcome obstacles, and face serious challenges.
Lack of capital
It is easy to start your own business if you come from a wealthy family, inherit a fortune, or win a grant. None of these factors you can control. If you start from scratch, insufficient funds can be the problem that ruins even the best idea and strategy.
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You cannot rely on loans
This is partially explained by the previous argument: banks can’t be sure you succeed and return the money so it is easier not to give you any money. On the other hand, the requirements for the application are so high many people get discouraged and don’t even try to apply.
Sometimes accompanying expenses are much higher than the costs you need for implementing the basic idea. The lack of infrastructure interferes either with getting required licenses or delivering the services to potential customers. Sometimes it makes effective functioning impossible.
Starting the business successfully doesn’t guarantee that it will continue working well. Unfortunately, you cannot be sure that the dollar doesn’t go up, prices remain the same, customers will afford to pay for your goods/services, and updates in the legislation don’t make things difficult for you.
Inconsistent governmental policy
The existing policies and multiple taxations fail to create the proper environment for entrepreneurship. People don’t have enough freedom for entrepreneurship, and the changes are too slow. The attitude to starting a business in Nigeria is another problem: for many, the idea just doesn’t make sense.
It is usually referred to as a positive influence, however, big corporations keep holding the leading positions suppressing small local businesses. It is always easier to open one more branch for a multi-million company, and it doesn’t have to work on reputation and loyalty, unlike a small unknown brand.
Lack of knowledge
People who aren’t afraid of the obstacles mentioned above are sometimes unable to estimate the situation properly. The lack of experience and knowledge may result in poor planning and execution just due to missing some little things that lead to unpredictable consequences.
This is more about the lack of patience: we want to get successful and wealthy, and we want it immediately. It will take some time for income to cover the investments, and you still need to pay salaries, taxes, take care of equipment… Using the resources intensively from the very beginning will lead only to exhaustion and fails. Work hard but don’t overdo it.
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When it comes to business, you should be tough and act tough. You will need to give up some personal interests in favor of your company’s. You will be unable to provide services for free for the whole bunch of your friends. You should be focused on efficiency and effectiveness, also realize that mistakes are for learning, not giving up, and keep working hard. Get ready for it or just don’t start your business.
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