Running your own business is often seen as a path to financial freedom and happiness.
This is true in the most part, but unfortunately, there are some negative elements that nearly all founders must go through to reach their intended destination.
Entrepreneurs who avoid these 10 things will most likely not develop the skillsets necessary to succeed in the long term.
What are those 10 things? Read on to find out.
Here goes…
1. Financial Instability
This is probably one of the largest issues that nearly all entrepreneurs will face.
Sounds crazy since entrepreneurship has the glitzy image of huge funding rounds and sky-high valuations.
However, one of the key things that every founder needs to learn is how to deal with financial instability.
Founders who do not have external funding often use their own money or savings to invest in their business, so extra cash is often hard to come by.
Entrepreneurs who have managed to raise capital often pay themselves very little, if anything at all, while their business grows.
They must also ensure their venture does not run out of money, often while the company is making little to no revenue.
Most entrepreneurs will come close to or succumb to severe financial loss.
No matter how great your venture is, or how well funded you are initially, this will happen to almost everyone at some point.
A well-known example of such financial instability is the story of Elon Musk and SpaceX.
Musk came dangerously close to losing everything in 2008. He had invested all his money from the sale of PayPal into SpaceX and Tesla.
Unfortunately, SpaceX was on the brink of financial ruin after three rocket failures. If the fourth was unsuccessful, SpaceX would go under, and Musk would lose his fortune.
Fortunately, the launch succeeded, and NASA later awarded SpaceX a major contract.
The rest is history.
Remedies:
Don’t overspend. Only spend on things that will bring actual revenue and growth to your venture.
Ensure you build a financial buffer. Aim to diversify income streams to reduce risk.
Look at holding other asset classes that have the potential to increase in value while your venture is growing.
Avoid going ‘all in’ on your venture and investments. Ensure you monitor your finances and cash flow carefully and adjust spending accordingly if necessary.
2. Rejection
Every entrepreneur needs to get used to hearing “no”. The fear of ‘no’ often keeps many stuck in one place.
It cannot be underestimated how entrepreneurs must keep on pushing, no matter how many times rejection shows its face.
In fact, if you haven’t been rejected this week, you are probably not pushing hard enough and are just coasting.
Hearing a “no” places you one step closer to a “yes”.
A famous example of persistence is the story of Airbnb founders Brian Chesky, Joe Gebbia and Nathan Blecharczyk.
They were rejected by at least seven venture capital firms, which thought the idea of renting out air mattresses in spare rooms was “strange” and unscalable.
Remedies:
Try not to take feedback personally. When you hear a “no” aim to analyse why things didn’t work out and make improvements for your next attempt.
Understand that a “no” today might turn into a “yes” tomorrow.
Avoid crashing out on a “no”, aim to move on quickly to the next prospect, and incorporate everything you have learnt so far into your pitch.
Ensure you follow up. Don’t assume that silence means “no”.
3. Unexpected Setbacks
This one is very common and is bound to happen on your journey to success.
Almost every founder will face unexpected setbacks. A product launch might fail. A key team member may leave. The economy could take a turn for the worse. A key client may fall through.
No matter what it is, entrepreneurs need to be ready for change. Often, change comes overnight and without warning.
Remedies:
Rather than fearing setbacks, entrepreneurs should make setbacks a part of their process.
Building resilience in tough circumstances is essential for success, as are problem-solving skills.
Have contingency plans in place for when or if the worst happens.
When a setback arises, avoid high emotion. Break down the issue into a series of problems that you can fix one by one.
Be adaptable and flexible to unexpected changes. However, be careful not to throw out the good stuff you are doing during emotionally charged times.
Don’t keep doing the same thing when everything has collapsed around you. If things are not working, try a different approach.
Even small tweaks can have a huge impact on outcomes.
Be patient as you rebuild to get back on track. Recovery from a setback can sometimes be slow and frustrating.
4. Fear of Failure & Risk
This is another big obstacle for many.
The fear of failure can leave many entrepreneurs paralysed, unable to make any meaningful decision or carry out any productive task.
With the fear of failure comes the practice of avoiding risk.
This fear is not unwarranted since it’s estimated that 90% of new ventures fail.
However, it’s important to understand that without risk, there is no upside. Therefore, if your intention as an entrepreneur is to avoid risk or eliminate it, you are probably limiting the future success of your venture.
Any start-up venture that has little or no risk attached is either ‘pie in the sky’ or has little or no future value, as the business model has probably been ‘done to death’ already.
The sweet spot for entrepreneurs is to find and grow a venture that has manageable risk that can be overcome with the skills and insights of the founder and team.
The natural reward for taking risks and overcoming them is revenue and profits.
By taking risks, we do not mean throwing caution to the wind and acting recklessly.
Any risks you do take should be calculated and based on reality, not on wishful thinking or gambling.
Remedies:
Reframe ‘failure’ as learning. Each time you ‘fail’ list what went wrong. Aim to fix the issues or improve upon them.
Limit self-doubt by keeping a record of your wins.
Ensure you not only analyse your wins but also your losses. Analysing your losses can prevent you from making the same mistakes time and time again.
Don’t forget to test, test and test again. Get real data and insights into your business, preferably with real clients.
Aim to adopt an experimental mindset, keep an open mind and consider a mentor or the advice of an experienced entrepreneur if you get stuck.
5. Comparison With Others & Jealousy
While it’s important to understand the market, over-focusing on how others are doing and making comparisons can not only be distracting but can lead to unnecessary pressure and feelings of inadequacy, even jealousy.
Try not to get caught up in the success stories of others who appear to have had ‘overnight’ success. Jealousy and envy will not help you on your own path.
Remember, every entrepreneur has their own individual path to navigate.
Jealousy can work both ways. As you progress with your venture, you may find others compare you with the progress they have made in their own lives and subsequently aim jealousy towards you.
Aim to rise above such behaviour, in the digital world we live in, such behaviour is prevalent. Measure progress against your past performance rather than someone else’s highlight reel.
6. Burnout
Running your venture often means long hours and constant problem-solving.
The mental strain can lead to burnout and other health issues.
While almost every founder has pushed themselves to the limit at some point, it’s important to realise that you are human and should not take your health for granted.
Without good health, everything comes to a standstill.
Remedies:
Have clear boundaries for your work schedule. Ensure you prioritise sleep, exercise and eat healthily.
Try not to take on everything. Aim to delegate repetitive or time-consuming tasks to others.
Focus only on high-impact activities that will drive the growth of the business. Don’t make the mistake of being ‘busy doing nothing’.
7. Loneliness
This is a big one that is often not spoken about.
Entrepreneurship can be incredibly isolating.
Entrepreneurs often work alone or in very small teams. Working from home bakes in additional isolation into the mix.
Add to that, the pressure of making every decision without daily interaction and support can at times feel overwhelming.
Remedies:
Don’t suffer in silence. Ensure you join entrepreneur communities and attend networking events.
Aim to build bonds and connections not only within your field but with others who have built something successful from scratch.
Keep an open mind and try not to judge people on looks, appearances and perceived ‘success’. Aim to have face-to-face interactions with people on a regular basis.
Take care of your existing relationships and make time for those who are currently supporting you.
When networking, listen to others. Don’t be the person who ‘hogs’ the conversation. Let others talk and be open to different thoughts and opinions.
8. Decision Fatigue
As entrepreneurs, we need to make numerous decisions every day.
Whether it be creative, financial or strategic, the constant stream of decisions can lead to mental exhaustion and that in turn can affect judgment.
Remedies:
Try to limit the number of daily decisions you make. A high number of decisions in a day can reduce your judgment skills and increase cognitive load. Studies show that we make worse decisions at the end of the day.
Ensure you do not act impulsively when you are faced with an important decision.
Consider making important decisions during your most productive hours.
If possible, don’t be afraid to ‘sleep on’ important decisions to gain a bit of distance and clarity on the subject.
Avoid making important decisions when you are stressed or tired.
Realise that some decisions need to be made quickly and others are best made later at an appropriate time.
However, whatever you do, do not avoid making a decision at all by ignoring the issue. The issue will always rear its head later, often forcing you into making a decision you would rather not.
9. Ego
As success and confidence grow, so does the ego.
Yes, it’s important to be confident, but there is a difference between confidence and arrogance.
Arrogant behaviour will drive away clients, team members and associates.
This one is so important for entrepreneurs since founders spend so much time building, that once traction is reached, the validation can be intoxicating.
When things get moving, it’s so hard to stay grounded.
Remedies:
Keep the ego in check. Remember that we all have something to learn, no matter how successful or talented we are.
Aim to learn or take advice from people who are more successful than you.
Help or encourage those who are less fortunate or who are still on the pathway to success.
Always be open to growth and learning new things.
10. Success and Scrutiny
Ironically, as your venture and your perceived ‘success’ grow, so will the level of scrutiny.
People may make assumptions about your venture or even yourself as an individual.
You may be overly criticised or put under the microscope. Once you and your venture reach this level, you may still be in the ‘growth phase’, but paradoxically, you may be perceived as wealthy, fortunate or even ‘lucky’. Often, the perceptions and assumptions will be unjustified.
A well-known example of entrepreneurial scrutiny is Mark Zuckerberg, the co-founder of Facebook (Meta).
Despite building one of the most influential technology platforms in the world, Zuckerberg has frequently been the subject of media scrutiny and public debate.
Whether justified or not, increased scrutiny often comes as a shock to most entrepreneurs.
Many entrepreneurs like to think they are changing the world, only to realise the world is suspicious of anyone with such high aspirations.
Even if you are not on the level of Zuckerberg, this example highlights an important reality for entrepreneurs: perceived ‘success’ often brings visibility, and visibility inevitably brings criticism. Sometimes justified, but often unfounded and unwarranted.
Remedies:
Do not take criticism or scrutiny personally.
Always respond constructively and learn from any feedback received.
Be prepared for public scrutiny and backlash; be careful what you post on social media.
Understand that you cannot please everybody, and learn to handle scrutiny by focusing on your long-term goals.
Do not lash out at those making the criticisms or doing the scrutinising. Let your accomplishments speak for themselves.
Final Thoughts
We didn’t write this article to scare you, honest!
However, it’s important to be realistic and understand that your entrepreneurial journey is likely not going to be a straight path leading directly to success.
There will be many twists and turns along the way, and despite the negative issues raised in this article, entrepreneurs who overcome these obstacles will learn and develop valuable lessons and skills that will lead to eventual success.
The most successful entrepreneurs are not those who avoid difficulties, but those who expect these challenges and learn from them.
Savvy entrepreneurs who overcome financial instability, fear of rejection, and manage risk, live healthily, and keep their ego in check are simply better equipped for the future success that awaits them.
90% of new ventures fail, so taking on board these vital issues may prevent becoming part of this dire statistic.
Are you up to the challenge?
Good luck!
Disclaimer: This article is not financial advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
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