7 Obstacles That Prevent People From Starting Businesses (And How To Overcome Them)

Millions of people dream of becoming entrepreneurs, but they never take that all-important first step. Too many things get in the way of their pursuit of business ownership, or they keep convincing themselves that their dream isn’t realistic. 

If you ever want to move past this phase and found your own business, you need to acknowledge the specific obstacles that are holding you back and work to resolve them. Here are seven of the most common challenges that may be standing between you and your entrepreneurial dreams—and ways you can kick them to the curb. 

1. Financial limitations

Launching a business takes money, and most people don’t have ample cash to throw at a startup. There are several options here. First off, you could begin saving now for the funds to establish your business. If you shop for a better mortgage and reduce your house payments by refinancing, you can sock the savings away in your startup fund. You can trim costs in other areas to put away a few hundred dollars each month or save even more by picking up a side gig.

Barring that, you can secure funding in a variety of ways, such as borrowing from friends and family, crowdfunding, seeking loans and grants or even working with angel investors and venture capitalists. There’s always a way forward. 

2. Inexperience

Becoming a successful entrepreneur typically demands experience; you need to understand your industry and business management in general if you want to earn a living from your venture. When you have limited experience, you may be reluctant to move forward, and understandably so.

You can make up for this, however, by actively seeking the experience you lack. Take an online course to gain a grasp of business management basics. Strive for a leadership position with your current employer so you’ll acquire strategic planning and people management skills. Work with a mentor or shadow an entrepreneur you admire. 

3. No standout idea

You can’t build a business if you don’t have a promising idea for a product or service you can sell. Without a solid business plan, you won’t be able to convince investors or partners to join you—and you won’t even know where to begin. Unfortunately, this is one of the least “fudgeable” obstacles on this list. Without a good idea, you can’t start a business, period.

Luckily, there are ways to stimulate better idea generation, such as talking to a broad range of people, reading entrepreneurial content and taking a more robust approach to brainstorming. Techniques like mind mapping and word banking can get your creative juices flowing. 

4. Current responsibilities

Some people avoid starting a business because of existing responsibilities or constraints on their time. Their current full-time job, their status as a parent or other personal responsibilities hold them back from their entrepreneurial ambitions.

Here the best approach is to determine how much of an impact these responsibilities have and consider ways to delegate or remove them. Could you realistically quit your day job, for example, or hire someone to help with household duties or childcare?  

5. Fear of failure

Lack of confidence is an entrepreneurship killer. It’s true that the failure rate for new businesses is relatively high, with half of new companies failing within five years. To buck those odds, you’ll need a healthy dose of confidence in yourself and your idea. 

The only solution to a fear of failure is to change your mindset. You have to see failure as an opportunity for learning and growth and stop seeing it as the end of the road, an indictment of your abilities or a stain on your character. Reading accounts by successful entrepreneurs will inspire you to see the possibilities rather than focusing only on the risks.  

6. Aversion to stress or hard work

Starting and running a business demands a lot of effort. You’ll likely be putting in long hours and dealing with stressful issues. On top of that, your first few years are apt to be highly inconsistent, with your business only making a profit some of the time. This can wreak havoc on your finances and peace of mind. If you’re not feeling up to this kind of pressure, or if you’re loath to work more than 40 hours a week, entrepreneurship may not be for you.

Again, the only way around this obstacle is to change your attitude. Remember that all this hard work will be in service to yourself, not an employer. While the risks are on you, so are the rewards.

7. Poor timing

One of the most common excuses you’ll hear (or hear yourself saying) is that it’s “just not the right time” to start a business. The truth is, there’s never a truly “right” time—you can always find some reason that today, or this month or this year isn’t ideal for launching your venture. 

But like beginning a diet on a Wednesday or joining a gym in February, the trick is to make your own right time. Microsoft was born during the oil crisis of the 1970s, while Airbnb and Uber were founded in the depths of the Great Recession. Remind yourself that the success of your business will depend not on “the times” but on you.

The Realities of Entrepreneurship

It’s true that anyone can become an entrepreneur with enough grit and persistence. Most entrepreneurs with solid ideas have a good chance of becoming successful if they remain adaptable. But it’s also important to realize that not everyone is cut out for entrepreneurship

If you’re intimidated by the stress, inconsistency and long hours associated with startup life, or if you truly love your day job and you’re afraid to leave, maybe business ownership isn’t right for you. That said, if you feel the pull of entrepreneurship but keep making excuses to avoid getting started, you owe it to yourself to challenge those excuses and try to move past them.

This article was written by Serenity Gibbons and published on Forbes.com.

Entrepreneurs Like Richard Branson and Mark Cuban Embrace the Serendipity Mindset. You Should Too

You will never control everything that happens, but you can always control how you respond.

One day in 1984, Richard Branson sat in a Puerto Rico airport, eager to board his American Airlines flight to the British Virgin Islands.

Then American canceled the flight.

Frustrated, the 28-year-old Branson went to the back of the airport and used a credit card to hire a plane. He borrowed a blackboard, wrote, “Virgin Airlines: One way to the Virgin Islands, $39,” walked around the airport…and managed to fill the plane.

When the flight landed in the Virgin Islands, a passenger said, “Sharpen up the service a bit and you can be in the airline business.” The next day Branson called Boeing to ask if they had any used 747s for sale. Starting an airline hadn’t been on Branson’s radar until he was “lucky” that his flight got canceled.

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Hold that thought.

Research shows that traits like passion, mental toughness, constant learning, and a willingness to take risks do lead to greater success. Hard work tends to be rewarded. Perseverance is often the difference between success and failure; give up, and failure is guaranteed. Intelligent risks do, at times, pay off. And if they don’t, what you learn from new experiences makes success more likely the next time.

When you outwork, outthink, out-skill, and outlast other people, you’re much more likely to be successful.

The Serendipity Mindset.

Research shows that luck also plays a part. Success is based on factors you can’t control: Being at the right place at the right time. Meeting the right person at the right time. Experiencing something you weren’t necessarily looking for.

And since our lives are often influenced by the unexpected and unplanned (hi Covid-19!), seize the moment the opportunity can provide. That’s what Christian Busch calls, in his book The Serendipity Mindset, The Art and Science of Creating Good Luck, embracing the “serendipity mindset.” 

As Busch writes, “Unforeseen events, chance meetings and bizarre coincidences aren’t just minor distractions or specks of grit in our well-oiled lives. The unexpected is often the critical factor–it’s often the force that makes the greatest difference in our lives.”

For Branson, that meant hiring a plane, and financing the cost by selling tickets to other passengers–instead of waiting for a flight the next day. And then realizing that he could create a better airline than the incumbent brands.

For Steve Jobs, that meant recognizing that his relationship with Steve Wozniak could lead to more than a shared appreciation of electronics and playing pranks. For Stephen Hawking, that meant seizing the “opportunity” his disability provided to avoid teaching, lecturing, and attending committee meetings, and instead devote himself fully to research.

For Mark Cuban, that meant starting an internet business at the perfect time. And being smart enough to sell. According to Cuban, “Life is half random.”

Which is why, according to Busch, “Cultivating serendipity is first and foremost about looking at the world with open eyes and seeing opportunities others don’t. It’s not just about being in the right place at the right time and having something happen to us (blind luck), but rather a process in which we can be actively involved.”

How can you develop a serendipity mindset?

Meet more people. Try more things. When things don’t go according to plan, don’t take a step back. Step forward. Embrace what feels like chaos and see where it leads.

Have a goal, have a plan. And then be willing to maneuver. What seems like the wrong place might actually be the right place. What seems like a chance meeting might be the start of an important partnership or collaboration. 

What seems like bad luck might cause you to stumble on an idea, a market, a new business….

As long as you’re open to the possibility.

This article was written for Inc.com by Jeff Haden.

Billionaire Financier David Rubenstein On Leadership Lessons From Jeff Bezos, Bill Gates, Oprah And More

Wall Street firms famously love to hire renowned CEOs, ex-presidents, retired generals and famous coaches to give inspirational talks to senior management and rank-and-file employees. As a philanthropist and the co-founder of The Carlyle Group—one of the world’s largest private equity firms with $221 billion in assets under management, David Rubenstein has attended his share of these events only to find some of the speakers “not the most scintillating.”  

“I kind of came up with the idea; maybe I could make it a little livelier if I interviewed them. Just thinking I could add in some humor,” Rubenstein tells Forbes of the inspiration for his latest book How To Lead: Wisdom from the World’s Greatest CEOs, Founders, and Game Changers

Based on dozens of interviews he has conducted with chief executives, politicians, thought leaders and industry trailblazers in the past five years, Rubenstein wants readers to see the full spectrum of assets and liabilities in leaders, including Bill Gates, Jeff Bezos, Tim Cook, former U.S. Presidents Bill Clinton and George W. Bush, Justice Ruth Bader Ginsberg, and Oprah, who inspired Rubenstein to be a better listener. “Hopefully, you’ll have better leadership out of all this,” he says, aiming to inspire younger generations to be leaders themselves.

JPMORGAN CHASE DIMON
Money Business: Rubenstein interviewed JPMorgan Chase CEO Jamie Dimon in April 2019. PHOTOGRAPHER: MARK KAUZLARICH/BLOOMBERG

“I’m getting up there in years and what is going to be one of the legacies I can leave to people and my children? Maybe I can have a couple of books,” says the private equity billionaire, who published his first collection of interviews, The American Story, last year. An insatiable reader who reads “six newspapers a day, at least a dozen weekly periodicals, and at least one book a week,” Rubenstein believes that a lifetime of curiosity is essential for a good leader.  

For those hoping to fast-track their way to the top, there is no shortcut to becoming a leader, Rubenstein says. Reflecting on his 2017 interview with Nike cofounder Phil Knight, he writes that Knight’s original vision to start an athletic shoe company was hardly the only factor in his success. It was also Knight’s willingness “to put in the long hours—and to suffer the occasional failures and crises—to make this vision a reality, and in recent years to turn the operation over to experienced managers who could further build the company.”

In addition to the interviews, Rubenstein also lists twelve pillars for being a good leader: luck, desire to succeed, pursuit of uniqueness, hard work, focus, persistence, persuasion, humility, credit-sharing, ability to keep learning, integrity, and failure. (Rubenstein, who is worth $3.2 billion, admits that his biggest business mistake was selling Carlyle’s $80 million investment in Amazon shortly after its IPO in 1996. He says that stake would now be worth about $4 billion.). 

Finances aside, 2020 has been a devastating year for billions around the world who have turned to leaders—in politics, business, sports, and entertainment—for clarity and hope. Rubenstein believes those who understand humility and rise to the occasion will be the ones remembered for their actions, such as late congressman and civil rights leader John Lewis and Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases. 

“Tony Fauci is in a league by himself,” Rubenstein says. “He’s been swatted down by lots of people, and some people criticize him for lots of reasons, but he’s stayed in the arena and he’s fought for what he believes are really, really good principles.”

David Rubenstein How to Lead
SIMON & SCHUSTER

Another leader who has had to step up in 2020 and was interviewed by Rubenstein last year is NBA commissioner Adam Silver. “Who would not be upset when people are getting shot in the back or are killed for no reason that seems apparent to anybody?” Rubenstein says of the league-wide strike following the shooting of Jacob Blake in Kenosha, Wisconsin. “I think the world has recognized that you can’t ignore the protests of players just because they’re athletes. Now, everybody realizes it’s probably a mistake to do what [the NFL] did in terms of not letting [Colin Kaepernick] come play again.”

One name that didn’t make the cut for Rubenstein’s new collection is Donald Trump. “I did interview President Trump before he was the president at the Economic Club of Washington, and that’s where he told me he was going to run for president,” says Rubenstein who thought the interview was too dated to be included in the book. “I was surprised. I didn’t really believe he was going to do it. And I didn’t think he could pull it off. He did.” 

Unlike Trump, the Washington, D.C-based Rubenstein doesn’t imagine himself in the political arena anytime soon. “I’m still a youngster by the standards for people running for president so maybe I’m a little bit too young to run right now,” the 71-year-old investor says. (Trump is 74 years old and Biden is 77.) “But to be very serious, I think there are a lot of people who are probably younger, and probably would do a better job than I would do.” Hopeful about the near future, he says the country will have a fresh start in 2021 following a Covid-19 vaccine and the elections. 

Recalling a recent conversation he had with Shark Tank judge and billionaire Mark Cuban, Rubenstein says he expects people are going to create great companies post Covid-19—those who prioritize diversity and inclusion, philanthropy, and social impact as well as profits. “If you’re ever thinking of doing something entrepreneurial,” Rubenstein says, “do it sooner rather than later.”

This article was written by Deniz Cam for Forbes.com