Launching a business can be nerve-wracking – especially when you consider that many startups don't make it past their first year.
Roger Killen, owner of Startups That Work, a company that helps new businesses increase their probability of success, surveyed 60 experienced entrepreneurs to find out what challenges, frustrations and fears founders of startups face.
According to 43% of the survey's respondents, finding the right people to build a strong startup team was one of the biggest challenges, and attracting the right partner was identified as being especially difficult.
Other challenges identified in the survey included:
- lack of confidence (39% of respondents);
- surviving the startup period (35%);
- optimizing the product-to-market mix (27%); and
- raising capital (21%).
Killen said he was surprised that lack of confidence was the second-biggest challenge identified by survey respondents.
"Entrepreneurs doubted their character, their bandwidth and skills to do what has to be done in order to have a successful startup, and [I'm surprised because] you will never know from the bravado of the startup founders. They act well."
But Killen said that admitted lack of confidence is not a bad thing.
"For every 100 startups that are launched, about 75 of them shouldn't be. If you lack confidence you probably have this deep-seated concern that your business isn't going to make it."
Killen recommends that aspiring entrepreneurs ask themselves difficult questions such as, do I have what it takes to be an entrepreneur? Do I have the skill set? What about the market characteristics and what about the market-product mix?
Killen also believes finding a mentor is key to success. As does Bridget Field, client service manager for Small Business BC.
"I think every small business should have a mentor," said Field. "Someone they can bounce ideas off when they run into problems."
Small Business BC doesn't have a mentorship program, but it has a number of advisers and courses that can be used to help entrepreneurs overcome the challenges of starting a business.
"If you've got the entrepreneurial mindset, it's really about filling in the gaps on the things you don't know. Once you fill in those gaps, you'll have more confidence," said Field "Knowledge is going to breed that confidence."
Field recommends taking Small Business BC's Sales for Entrepreneurs seminar. "Entrepreneurs don't think they are salespeople, but they are. They're selling every minute of every day when they're interacting with people so it's not your classic sales. It's really about how to get yourself out there."
Another way of boosting business confidence, according to Field, is to enter your business into award ceremonies like the Successful You Awards, which is hosted by Small Business BC.
"So many have given feedback that that process has built so much confidence for them, they really like pitching to the business panel because they get that instant feedback," said Field.
On the issue of team-building, Field recommended that business owners hire people that complement their skill sets, especially when considering a business partner.
"You need to have an agreement about who is bringing in what," said Field. "Not just in money or assets, but intellectual property. What their roles and responsibilities in the partnership are going to be. It has to be dictated from the very beginning." •
