Top ten challenges every entrepreneur will face.
#1: Sacrificing Your Salary
You’ve got to learn the 9 – 5 sacrificing your salary. That is a challenge you’re going to face. Let me tell you, when you go from having a salary that’s coming in, it’s warm, it’s fuzzy, it’s a nice, comfortable pillow, you’ve got benefits, you’ve got all this stuff, and you say, “I’m going to be an entrepreneur,” you have to sacrifice your salary. Benefits, health insurance, no matter what income, worst case scenario, you’re going to make your five grand a month. Worse case you’re going to make your eight grand a month. That is out the window. You will have to anticipate this happening.
#2 Capital Management
What do I mean by capital management? Time clock, on how much you’ve saved, and what your expenses are, you’re going to hear it constantly tick tock, tick tock, tick tock. The way you manage your capital will allow you to stay in business long enough to make it as a business owner, if you know how to manage your capital properly. It doesn’t matter if you’re a real estate agent, if you’re a technology company out of Silicon Valley, or if you’re running a liquor store. You will need to know how to manage your capital yourself to stretch it out as long as possible.
#3 Processing Issues
This looks pretty bad. This looks like a horror movie right here. Luis, this looks pretty intense. It says, solve for x. Let me tell you what that is. You will have to process many unknown issues that you’ve never experienced before. You’ve never experienced before. How do you do this? I don’t know how to work this part. I don’t know how to handle this issue before. I never knew I needed this insurance policy to be able to do this event at a hotel. I never knew my requirement to be able to get a lease in a building was this that I have to spend another $7,000. I never knew I needed to do this other part that’s going to cost me $17,000. How come nobody told me about this stuff before?
Anticipation. It’s going to happen. So if you don’t know how to solve for x, these situations you’re going to go in, you’re going to have a hard time with it. But you need to anticipate there will be many issues, unknown issues, that you need to solve that no one else is going to prepare you for.
#4 Team Building
how are you going to put a team together? How good of a recruiter are you going to be? How good are you at bringing solid talent, operations, systems, sales, technology, compliance, how are you going to do that? How well are you going to do that? Team building. You will face that challenge, where you’re going to realize you can’t do it all. And it comes down to how well you build a team.
Casting a vision that others want to belong to. Casting a vision where I want to be a part of. You, constantly casting a vision that I can be a part of it, a year, three years, five years, ten years, 20 years down the line, and my own selfish goals and desires can become a reality based on the effort I want to put in. But based on the vision you keep casting that everybody around you believes because you keep getting closer and closer and closer to that vision. If you cannot cast the vision, you’re going to lose the best type of talent, if you don’t know how to cast the vision.
You will be lonely. I put a song here, Only the Lonely. You will be lonely. There will be many lonely nights. There will be many days where you’re going to sit there by yourself saying, “I don’t really know if this is going to work out.” There will be many days you have no one to call. No family, no friend, no girlfriend, no husband, no wife, no mom, grandma, grandpa, no one for you to call because you can’t complain to any of them because you decided to become an entrepreneur.
They never forced you to become an entrepreneur. You decided. So you call them, the last thing you want to hear is what? I told you not to do it! It’s going to be a tough phone call. So there’s going to be many lonely nights. Lonely mornings, lonely decision-making process, lonely Sundays, lonely Saturdays.
#7 Tax And Lawyers
You are now paying taxes on a new code as an entrepreneur. You will need a CPA that knows how to transition you from W2 to being an entrepreneur. You will need lawyers to protect you from business. How do I structure the company? LLC, C Corp, S Corp, you know, is this a Limited Liability Partnership? How am I going to. . . am I doing a real-estate partnership with a group of. . . how am I setting this up? You’re going to need lawyers and taxes, which means you’re going to speak to CPAs and lawyers in ways you’ve probably never dealt before, and they’re going to tell you some stuff that you’ve never heard before. Where in many cases you’re going to sit there and act like you know what you’re talking about, but you have no clue what they’re saying, and you kind of don’t want them to think that you don’t know because they’ll charge you more, but you need to ask. I don’t understand. Can you please explain this to me? You will face this. It’s inevitable.
#8 Wearing Multiple Hats
You will wear many different hats. You’re just going to. You’re going to be a salesperson one day. You’re going to clean your room one day. One day no one’s cleaned the kitchen, and you’ve got to do it. No one’s putting the stuff in the files. You’ve got to do it. You’ve got to answer the phones sometimes. You’ve got to get back to a text that you probably shouldn’t be getting back to as a CEO, but you need to because you’re wearing many different hats. You’re going to do design. You’re going to do what the website looks like. You may do social media. You may do the posting. No one knows this because you’re wearing many different hats and you have to go through it as a person who starts a business.
#9 Handling Competition
I’m going to knock you out. You know what this is? You’re going to deal with people that want to put your out of business. And you’re going to say, “how brutal is this? You can’t be this cold.” It’s the world of business. You’re taking a piece of business away from them, and they want to put you out of business. So you’re going to have a lot of competition that are going to do whatever they can to put you out of business.
#10 Lifestyle Change
This is difficult for a lot of people. Let me explain. You’re accustomed to going out on Friday nights and Saturday nights. And Thursday night ladies’ night. And maybe sleeping in a little bit. And maybe working five o’clock you come home, you watch all the games, all the playoff games, all the soccer matches, all the football games. You get every one of those things because it’s your lifestyle. Your boys call you on Friday night because you have this one spot you go to. Saturday night is your favorite three lounges that you go to. Sunday you have a spot that you go to from eight o’clock to one o’clock in the morning, and you go to sleep at 1:30, so you can get some rest to wake up at 7:00 in the morning. You have all your spots that you do.
Let me prepare you, all of this is going to change. Your relationship with some of your friends, is going to change. Your daily habits, are going to change. Some of the people that you were hanging out with before, it’s going to change. Some of the places you used to go to before, it’s going to change.
Generally, this most people cannot handle. Because they want to win big as an entrepreneur and become a hero and celebrity and all this stuff, but they want to keep this lifestyle. So it’s almost like they’re not letting go of this to go get this. You have to let go of the lifestyle and if you can’t let go of this lifestyle if you cannot wear multiple hats, if you cannot understand the competition’s going to want to put you out of business, if you don’t pay attention to tax and law, if you don’t realize you’re going to be lonely, if you don’t constantly cast a vision, build a team, process issues, know that you don’t have a lot of time to left with the savings that you have, the capital that you have, and the fact that you need to eventually sacrifice your salary, the cushion, the warm, fuzzy feeling of a steady salary coming in, you’re going to have a very hard time as an entrepreneur and I highly recommend you don’t do anything to become an entrepreneur, you stay as an employee.
So, with that being said, these are the ten things every entrepreneur will face. These ten challenge every entrepreneur will face, And if you’ve got any other challenges that I did not mention in this blog, comment on the bottom and share with us your challenges. And if you’re facing any of these challenges right now, let us know which challenge you’re currently in as an entrepreneur.