What's the biggest problem that aspiring entrepreneurs face?
In my field of work, I get to connect with a lot of people who want to start their own business, but only a few of them actually get to pursue it.
So, I wanted to know what usually stops people from pursuing their passions and ideas in this age and time.
One of the prominent obstacles for aspiring entrepreneurs is lack of vision. Most aspiring entrepreneurs don't see the clear prospect in entrepreneurship. They see it as a pastime. The reason why most don't have a business plan for the ventures they are running. If can't see a future, you can not enter into it. Unfortunately, most think its lack of capital that is the obstacle. Rather, it is a lack of clear idea of the venture you are running. Most times you don't even need capital to begin a venture. idea is thus necessary.
An entrepreneur’s life is not enviable, at least in the beginning. It’s extremely easy to get discouraged when something goes wrong or when you’re not growing as fast as you’d like. Self-doubt creeps in, and you feel like giving up.
Risk aversion. People don't want to risk losing stability that jobs offer.
One can balance this by calculating own risk tolerance and following this plan.
1) What percentage of your savings could you lose and be able to sleep at night a month since losing? That is your risk tolerance. Let's say yours is 50%.
2) What's the capital required for your business? Let's say this is $80,000.
3) Most investors will require you to match their investment so you have to put in $40,000 at least.
4) What are your savings? If your savings are $40,000 you cannot just invest it all, your risk tolerance only allows 20k investment. So now your next step is to save up another 40k so your total savings are $80,000 and you can invest $40,000 + raise $40,000.
Most aspiring entrepreneurs with risk aversion are just building up their savings but it seems outwardly that they are passing on the opportunity to start something of their own.
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A survey tool place at our company and asked their employees a similar question and the output was: They're afraid of failure and mostly they are worried about capital to invest and look for investors.