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.

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

Trump Signs PPP Extension Bill—Giving Small Businesses Another 5 Weeks

TOPLINE

President Trump Saturday signed into law a bill extending the Paycheck Protection Program—an emergency federal loan facility for small businesses struggling because of the pandemic—for another five weeks until August 8, buying Congress time to figure out what the next round of aid for small businesses will look like when it reconvenes later this month to hash out more stimulus legislation. 

President Trump Holds Briefing At The White House
U.S. President Donald Trump speaks to the media in the briefing room at the White House on July 2.

KEY FACTS

The PPP was originally slated to close down last Tuesday. 

The Senate unexpectedly approved the new legislation by unanimous consent on Tuesday evening, and the House followed suit on Wednesday. 

Some $130 billion in loan money allocated to the $670 billion program remains unspent. 

When Congress returns from its July 4th holiday recess, it must figure out how to allocate the remaining money and determine the next steps for federal aid to small businesses. 

Treasury Secretary Steven Mnuchin has said that the next round of small business aid will need to be “more targeted” to the specific industries that are struggling the most, like hotels and restaurants. 

Another popular Democratic proposal would allow businesses with fewer than 100 employees to take out a second PPP loan from the remaining funds. 

BIG NUMBER

4.8 million. As of June 27, that’s how many PPP loans had been approved. All in, those loans were worth nearly $520 billion.

KEY BACKGROUND

The PPP was created as part of the $2.2 trillion CARES Act, signed into law by President Trump at the end of March. The $350 billion program provided forgivable loans to cover payroll and overhead expenses for cash-strapped businesses to keep them from folding during the worst of the economic slowdown. After an initial crush of applications and a chaotic rollout period, the PPP ran out of money in just two weeks, prompting Congress to pass more legislation to re-up the facility with another $310 billion. 

This article was written by Sarah Hansen for Forbes.com

Uber is reportedly in talks to buy food delivery firm Postmates for $2.6 billion

Uber is changing tack after acquisition talks with Grubhub fell through by switching its attention to food delivery startup Postmates, the New York Times reports.

Three sources familiar with the matter told the Times that Uber and Postmates were holding ongoing acquisition talks. One of the sources said Uber is offering to buy Postmates for roughly $2.6 billion.

Uber was reportedly in acquisition talks with food delivery startup Grubhub earlier this year, but Grubhub announced on June 11 it was instead merging with European takeaway service Just Eat. Sources told CNBC Uber walked away from the deal over concerns it would attract antitrust scrutiny.

As a much smaller player in the food delivery business, Postmates could be a safer option.

According to analytics firm Second Measure, Postmates makes up a significantly smaller chunk of the US market than Grubhub. Grubhub captured 32% of food delivery sales in 2019, while Postmates made up 10%. Uber Eats meanwhile accounted for 20% of the market.

Antitrust fears are not the only possible reason why Uber may have walked away from Grubhub, various reports emerged that the two firms struggled to agree on a price for the acquisition. Just Eat paid roughly $7.3 billion to acquire the startup.

Uber’s desire to bolster its food delivery service has reportedly been spurred on by the coronavirus pandemic, as demand for taxi services has plummeted while food delivery has skyrocketed.

Two sources told the Times Postmates has also held sale talks with Grubhub and DoorDash over the past year.

Postmates confidentially filed plans for an IPO with the SEC in February 2019, but has yet to go public. Sources told Reuters on Monday that the company is considering reviving its IPO plans due to the boom in food delivery brought on by the pandemic.

Uber and Postmates were not immediately available to comment when contacted by Business Insider.

This article was written on BusinessInsider.com by Isobel Asher Hamilton

How Orangetheory Has Built a Devoted Following in a Crowded Boutique Fitness Market

From left: Jerome Kern, Ellen Latham, and David Long, co-founders of Orangetheory Fitness.
SCOTT MCINTYRE

When Ellen Latham lost her job managing a Miami spa in 2000, she was a single mother to a 9-year-old and terrified she wouldn’t find work. She used her background in physical education to make ends meet, eventually turning her at-home Pilates class into Orangetheory Fitness, a fast-growing exercise brand that in 2018 booked $180 million in revenue. 

Latham founded her Boca Raton, Florida-based company in 2010 with franchise-industry veterans David Long and Jerome Kern. They started with the premise that customers might experience better results if they were more attuned with how their individual bodies respond to exercise. The company achieves this with the help of wearables that track exercisers’ heart rates, inclines, speeds, and calories burned. The “orange” in Orangetheory refers to the “orange zone”–that is, a period of time in which a person’s heart beats at optimal efficiency. Ideally, customers should aim to spend at least 12 minutes in this zone during each 60-minute coach-led fitness class.

After hitting this point, a person’s body will work harder later to recover oxygen lost during exercise, which can accelerate the metabolism and help burn calories, says Latham. People don’t keep coming back to the gym for its orange motif, she says. “They are coming back because they get results from their workouts.”

And that’s led to significant growth for the boutique fitness brand. Indeed, in the last year, Orangetheory added 219 franchise locations and one corporate-owned studio across the U.S and India, bringing the company’s global tally to more than 1,300 franchise locations. It has also built a cult-like following among members–with some devotees getting tattoos of the company’s logo, notes Latham. Meanwhile, its two-year revenue totals shot up 341 percent since 2016, helping Orangetheory hit No. 35 on the 2020 Inc. 5000 Series: Florida list, a ranking of the fastest-growing private companies in the state.

While the company can credit much of its past success to helping customers understand their orange zones–and cultivating a community of superfans–its future success has everything to do with being able to deliver a fuller picture of customers’ health.

Part of that strategy rests in Orangetheory’s use of wearables. While the company started out simply strapping heart-rate monitors to people’s chests, in recent years it has begun selling the technology. Though customers can still borrow devices during class time, they can pick between four different versions of proprietary wearable devices. The gadgets cost as much as $129 and may be worn around the chest, wrist, or arm.

While Long says the devices account for just 10 percent of Orangetheory’s sales, the hope is the technology will become more popular with users, as the company builds out its offerings. In December, Orangetheory partnered with Apple to create a wearable that attaches to the Apple Watch, so customers can track a wide range of fitness and wellness data.

“We believed in it so much and it was a big focus of the brand early on,” says Long, Orangetheory’s CEO. “We wanted to build a wearable that was easy to use and helped us pick up massive member engagement.”

The company is also looking into joining the at-home fitness craze by releasing content on wellness topics, such as sleep, nutrition, and recovery guides. That’s a step in the right direction, says Andrea Wroble, a health and wellness analyst with the market research company Mintel–though she thinks Orangetheory could go further by streaming its classes. Home workouts have proved to be a promising way to scale for some companies–and that could deliver dividends for Orangetheory, she says.

Orangetheory’s plan to expand further into fitness tracking is a good one, because it could help the company build a stronger connection with its community, adds Wroble. “It creates a partnership with followers where the company can crowdsource ideas and the community feels seen and heard,” she says.

Still, standing out in the boutique fitness industry, which has exploded in size in recent years, may be tough for Orangetheory. In 2019, the U.S. health and fitness club industry reached an estimated $34.5 billion in revenue, amid different concepts like gyms and class studios, according to Mintel. 

What’s more, at-home fitness incumbents like Peloton and Mirror are already doing a sizable business and gaining widespread traction among users. So elbowing in on that market might be tough.

Latham isn’t deterred. “We’re not trying to create another fad in fitness. We are still appealing to huge masses and getting new clients,” she says.

To that end, Orangetheory continues to grow its physical presence, which should bolster its bottom line. Individual franchises cost between $576,000 and $1.5 million to start, which includes a $59,950 initial fee. The company hopes to reach 2,200 locations worldwide by 2025.

This article was written by Emily Canal and published by Inc.com.

The Impact Of Coronavirus: Advice For Funded Small Businesses And Those Seeking Funding

Smiling female owner taking steps to protect and grow her business.

“Spend every dollar as if it were your last.” This is a quote from Sequoia Capital, a leading venture capital firm in Silicon Valley. No, this was not a quote from yesterday but from 2008 when we entered what would be called the “Great Recession.” While the coronavirus is probably not going to lead the USA or the world into a recession, it certainly will cause a significant disruption.

Perhaps, not so ironically, Sequoia just issued another message to its funded companies last week where they communicated that the “Coronavirus is the black swan of 2020.” The message had three parts. One, stay healthy and safe regarding family and friends. Two, disruptions are/would be occurring as it related to business revenue, supply chain and travel. Three, they offered advice and counsel across six major areas that included cash runway, sales and marketing forecasts and critical operations expenses.

While the effect of the coronavirus seems surreal and that opportunities are limited, remember this: lots of successful companies have been created in downturns. Adversity sometimes brings out the best in us as we move to be as creative and innovative as possible, not to succeed but to survive. Uber, AirBnb, WhatsApp, Square, Pinterest, Slack and Twilio were all started in 2008 and 2009.

Here is some advice that pertains to funded startups, startups seeking funding and also to small businesses.Today In: Small Business

Manage your cash. You know the saying, “save your money for a rainy day”; well, that day is now. Examine the cash you have on hand and imagine how you could make it last for at least six to nine months. And it you don’t have enough cash on hand, look at how you could cut expenses or increase sales by doing something different.

Examine or revise your sales forecasts. Don’t fool yourself and believe your most optimistic projections. Get very realistic. The goal is not to hunker down and hide but to devise or brainstorm ways you could actually sell more of your products or services. Perhaps it’s new markets, customers or leveraging a partnership.

More creativity, less cash for marketing. Remember when you started your business and had no money and you were super creative on using word of mouth, organic social media and key networks to sell your product or service? Well, get back into that mentality. Be more creative with respect to your marketing expenses and look for ways to use marketing tactics that don’t have a significant cost.

Control employee expenses. As you examine your business, look to control expenses related to employees. Travel and event costs probably can be controlled. If you were looking at increasing your business footprint, you might want to hold off on any additional monthly rent expenses. Instead, see if you can temporarily reduce your expenses by not hiring any additional employees, perhaps use freelancers or contractors. Also, let your current employees work remotely. To help with any workload issues, consider hiring a college intern. 

Spend every dollar as if it were your last. Okay, this sounds a bit extreme but you need to embrace the mentality that you need to protect the lifeblood of any business. Cash. Either cash going out in the form of expenses or cash coming in from revenues. You might also be able to negotiate with your suppliers or landlords, letting them know you need some form of cooperation in order to survive. If you do cut employee expenses, look for ways to inexpensively keep employee morale high.

Startups and small businesses that survived 2008 and beyond didn’t take life-threatening risks with their companies. Survival mattered more than market domination. Take the necessary steps so that you come out of this disruption stronger than ever.

This article was written by Bernhard Schroeder for Forbes.com

How To Understand The Dynamics Of Business Transformation: Three Top-Of-Mind Questions For Every CEO

When the clarion call of transformation is heard in a business, how does talent at different levels of the organization respond? What is top of mind for CEOs, and how does that mirror or differ from how senior vice presidents, department directors and front-line managers think and act?

What’s certain is that clarion call to reimagine and reengineer the business is getting louder. Only 8% of CEOs believe their business model will remain economically viable if the current pace of digitization of their industry continues, according to McKinsey.

This imperative to anticipate market changes, deploy new technologies, and embrace shifting customer and workplace demographics will drive companies worldwide to invest $7.4 trillion on digital transformation over the next three years, IDC forecasts. And the problem, as McKinsey also often reminds us, is that 70% of efforts to implement complex, transformational change will fail. That’s more than $5 trillion down the drain over the next three years if IDC’s estimate is right.

What the 30% get right is the human dynamics of transformation. Human dynamics matter: They are the connective tissue between strategy, outputs and outcomes. Ultimately, they reflect what I call the last-mile challenge of translating a bold idea in a boardroom into practical actions by the front-line teams tasked with the work that will realize extraordinary goals.

Through a series of articles, I’m going to explore how transformation plays out through the layers of a business — by role — and hopefully encourage a little more empathy up, down and across the org chart.

The CEO’s perspective

Let’s start at the top of the org chart with three questions about transformation that should be top of mind for CEOs.

1. How do I get our strategy to the last mile?

You’ll expend much of your energy in a constant conversation at speed and scale with the whole business about why change is necessary, what impact it will have and what teams must do differently. If I had the opportunity to spend 30 minutes with each of the 1,021 people that work at Workfront, I could explain our strategy and key activities and show how their work fits into that picture.

But that’s impractical and inefficient. I need technology to scale-up that iterative conversation, and I need talented front-line managers to ensure tasks reflect strategic priorities. Essentially, you need to increase the cycle time of “formulation communication” — the discourse between you and front-line talent as they try to understand what you’re asking so they can translate goals into actions for their teams.

And you will have to change the medium in which you communicate. I spent four years writing emails and doing town halls about our defining objectives before being encouraged to try videos. I did a series of six videos and the feedback was, “Oh, I didn’t know we had four goals.”

There’s a generation of goal-setting software and collaboration tools like Slack and Teams to harness and match the way people consume information so you can increase the quality and velocity of how your strategy translates to execution.

2. How can I tell if the right work is happening?

In 1975, Steven Kerr of Ohio State University wrote about the folly of rewarding A while hoping for B. Yet 45 years later, businesses are still trying to monitor the work through the lens of performance and pay systems. Do you think you’re going to get to the truth if you require people to communicate the status of work through the systems and conversations that have traditionally been reserved for lizard brain pay-related discussions? You won’t. And it’s not their fault — it’s yours for putting the conversation on the wrong railroad track.

What you really need to establish is whether the work going on day to day is connected to the strategy. You need to extract discussion of individual pay and performance from the fundamental question of whether the right work is happening to deliver your strategy. You need a work performance management system and a people performance management system.

3. Are there enough resources to deliver the strategy?

When your manufacturing capacity is humans, how do you know you’ve got the resources to execute your strategy? How hard do you push the organization?

Unfortunately, CEOs have the potential to run over people in discussions about resourcing. When they need to be told the truth about what’s required to get the job done, sometimes people stay silent (because they don’t feel they can talk back to the boss). What’s really required (and it’s something you need to encourage) is candid dialogue about productivity, resourcing, strategic requirements and the trade-offs that will play out in the decisions you make.

People can do more with better tools and clarity of purpose. But expecting productivity, outputs and outcomes to improve when your team is already running flat out is wishful thinking. And here you’ll see the interdependency of the three top-of-mind questions. If everyone in the discussion understands the strategy and how it connects to the day-to-day work that’s already getting done, then that candid conversation about resourcing is built on a foundation of certainty and clarity. If there’s low-value work that’s crowding out time for strategically important tasks in people’s schedules, that’s the place to start looking for capacity.

Clarity of thought, word and deed sounds like a simple combination for a CEO to get to green on transformation. But you will only succeed with collaborative communications technologies that cut across the complex network of interdependencies that make up the modern enterprise and allow conversations and decisions to flow at speed and scale.

Now, you’d imagine that an SVP would be among the first to align with a CEO’s thinking. But what’s the reality? What’s actually top of mind for SVPs when it comes to managing strategic change? That’s the dynamic of transformation I’ll explore in my next article.

This article was written by Alex Shootman for Forbes.com