The Barriers to Starting a Business
(and how to overcome them)
The yearly GOV.uk statistics show that between 500,000 – 700,000 new start-up businesses are launched in the UK every year. What those statistics cannot explain, is what those entrepreneurs had to overcome before they could open for business!
We’ve compiled some of the most common barriers that prevent people from starting their own businesses, and the ways to overcome them with the help of free local organisations and resources.
Current responsibilities
Whether your motivation for wanting to strike out alone is to have a more flexible schedule or the chance to pursue your hobby as a business, you have to consider whether entrepreneurship is realistically something you can do. Every dreamer has commitments – perhaps you have to provide for other people, or you’re just keeping your head above water in a sea of bills and debts – so it is rational to fear losing your safety net by stepping away from a consistent pay check. Realistically, running a start-up is stressful, time-consuming, and relentless. It can also be rewarding and validating and exciting, but it’s important that you weigh these things up and consider if it’s right for you before proceeding further on this journey. Once the excitement fades, will this business make enough to cover your personal bills? Could any compromises be made so you could feasibly juggle your commitments with your venture? If this is really what you want to do but you can’t give up a regular income, then consider starting with a part-time business that won’t be too time-consuming until your circumstances change. Side hustles have gotten increasingly popular since the pandemic, with reportedly 46% of people in Britain using them to make a second income.
Too many ideas
It’s true that you can’t start a business without a good, solid idea. However, floating multiple interests is arguably far better than having none! What we can offer you right now is advice to help you find the best one:
A good idea is something you can summarise in a sentence. If your mission statement isn’t clear, you won’t get anywhere. Try describing your ideas as succinctly as possible and rule out any too complicated.
Ask yourself this: Is it a business or a hobby? It’s better to focus on what you’re skilled at than what you like, because skill is a far stronger foundation for a business. Rule out any ideas that would be too much of a reach.
Seek out business advice! Experts will be able to tell you which of your ideas are more likely to become reality.
CBInsights observed 42% of start-ups fail because there’s no market need for their services or products. Explore potential competitors. Don’t be afraid to let your idea shift and change as you investigate trends and competitors. If there’s a gap in the market, work to close it.
On that note, avoid becoming too emotionally attached to ideas that aren’t viable. Ultimately, it’s about what the customers would want, so if there’s no market for your idea then it wouldn’t be successful.
If you put enough thought and footwork in, then the best options will reveal themselves.
Financial limitations
It was estimated that 29% of new businesses fail because they run out of cash. Not all businesses need funding, but many others need a push to get going. Scared of the financial burden of taking out a loan, many walk away instead of asking for help. To take difficulty out of the equation, Let’s Do Business Finance is an accredited provider of the start-up loan scheme from the British Business Bank, and can provide full support and guidance. In the South East alone there’s also Business East Sussex, Kent and Medway Growth Hub, BEST Growth Hub and more providing business support, loans and grant funding, from organisations like Locate East Sussex.
If you are still unsure about seeking financial help, then the best option is to be careful with your budget right out the gates – running a business on a bootstrap budget is not impossible if you’re frugal, rational and creative enough to stretch it far! There are also types of businesses that are significantly cheaper to run than others, so it’s worth looking into.
Your own insecurities
All reasons not to start a business are excuses, to a point – the biggest thing to overcome is yourself. Let’s address the most common kinds of self-doubt:
What if I fail? Well, it isn’t unlikely - 20% of new businesses fail in their first year, and around 60% within their first three years. You can’t ignore the possibility; you can only work smartly to try and avoid it. Besides, failure can be a great teacher sometimes – if you’re trying things out and they’re not sticking, reflection is an excellent tool to ensure a better result next time.
What if I can’t handle it? It’s easy to be intimidated by all the hard work involved, but don’t be scared. Break things down and take them as they come, and the workload will be manageable. Make sure to write a comprehensive business plan too. They’re useful for you to set short, medium and long-term goals, to consider finance, and to recognise the strengths and weaknesses of your strategy (SWOT analysis). You could also make a business model canvas. These are tools to prepare you as much as possible for the tasks and considerations ahead.
Will I be capable leader? Firstly, being a good leader isn’t the be all and end all of entrepreneurship – a number of skills work together to create a successful business, including sharp decision making and strong marketing and technical skills. Secondly, leadership skills are not this innate thing you either have or do not have. They are cultivated through practice and determination! Being cognisant of your own personal weaknesses is already an amazing start – keep them in mind, do training and workshops, challenge yourself, read widely, and when you can handle hiring more people, try to hire to make up for what you lack so your workforce is balanced and stronger for it.
No support
Running a business can be lonely without support around you, especially if your base of operations is your own house, if you have no employees and if the position isn’t customer-facing. To address this, make a point of finding communities around you. Before you’re set up, this could be through the kind of start-up workshops that we run, like My Biz and Her Biz. After that, you could join associations like, for example, the Hastings Chamber of Commerce. In the Harvard Business Review, they reported that resilience is not a quality solely defined by innate “grit” but sustained through strong relationships and networking. It can be a huge boost to your confidence to socialise with other passionate people in the same position as you.
Not enough experience or business knowledge
Many future entrepreneurs feel strange about not having a business degree. To be honest, though, it isn’t compulsory. There’s free information everywhere for people savvy enough to find it! There are accidental entrepreneurs everywhere, who learned as they went, so keep in mind that you don’t need to know everything before you get started. If you would like more guided help, then Let’s Do Business are currently running workshops and clinics all throughout the month, where you will have unfiltered access to expert advice and valuable resources!
At Let’s Do Business Group, we want to help people and their businesses Launch, Grow and Thrive. We offer a wide range of services, from free advice and support from experienced business mentors, grant and finance sourcing, to free workshops to help you develop the skills you need to make your idea a success. Find out more about what we do, and Get in Touch with the team today.