4 Hurdles To Overcome When You’re Just Getting Started With Your Business Idea

Last Updated: 

May 17, 2024

The process of starting a new business is an exciting journey, filled with new possibilities, but not without its share of challenges. In the beginning, you are likely to face hurdles every few steps, some which can force you to abandon your dreams for good, without the right guidance and mentoring.

Understanding these common set of problems, and knowing about the various workarounds for the same can help budding entrepreneurs find their footing. In this article, we aim to do just that, with a deep dive into a few common hurdles, along with ways of dealing with or overcoming the same. 

Key takeaways on getting started with your business idea

  1. Setting up an LLC: Establishing a legal entity such as an LLC is crucial for compliance and protecting personal assets. Steps include choosing a unique name, filing articles of organisation, obtaining an EIN, creating an operating agreement, and obtaining necessary licences and permits.
  2. Developing a clear business plan: A comprehensive business plan outlines your vision, goals, target market, competition, and financial projections. Conduct thorough market research and create a detailed operational plan to guide decision-making and attract potential investors.
  3. Acquiring adequate funding: Assess your financial needs and explore funding options like personal savings, loans, grants, angel investors, or crowdfunding. Prepare a compelling pitch deck emphasising market potential and expected ROI.
  4. Building a strong team: Network within your industry, attend professional events, and utilise online platforms to find team members who align with your vision. Conduct thorough interviews, offer competitive compensation, and consider equity or profit-sharing options to attract and retain top talent.
  5. Stay adaptable: Starting a business is a continuous learning process. Embrace opportunities for growth and improvement, and be determined and adaptable in overcoming challenges.
  6. Perseverance is key: Face hurdles with determination and street smarts. Keep going despite challenges and maintain a positive mindset to achieve success.
  7. Seek guidance: Consult with attorneys, business advisors, and mentors to navigate legal requirements, develop strategies, and gain valuable insights for your business journey.
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Setting Up An LLC

The first thing to do before getting your operations off the ground, is setting up a legal entity under which you can conduct business. 

Not only is this mandatory for compliance with various local, state and Federal laws, setting up an entity such as an LLC or LLP can help protect entrepreneurs and their personal assets, in the case of losses, fines, and lawsuits.

An LLC is the best in this regard, and has gotten a lot easier to set up over the years, with minimal paperwork, rules, and regulations. Here’s a brief primer on how to get one up and running in the least amount of time,

  • Choose A Business Name: Select a unique name that reflects your brand and complies with local regulations. Ensure that the name is not already in use by another entity in your industry.
  • File Articles of Organisation: Submit the required paperwork, including the Articles of Organisation, to the appropriate state agency.
    This document typically includes information about the LLC's name, address, members, and management structure, and is in some ways akin to the constitution of an organisation.
  • Obtain An EIN: Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes. This number is essential for hiring employees, opening a business bank account, and filing tax returns.
  • Create An Operating Agreement: Draft an operating agreement that outlines the roles, responsibilities, and ownership structure of the LLC. This agreement helps prevent disputes and clarifies how the business will operate.
    There are plenty of resources online that allow you to create an LLC operating agreement in three steps or less, which can be done within a 1 or 2 hours at most.
  • Obtain Necessary Licences & Permits: Research and obtain any required licences or permits specific to your industry or location.
    Compliance with local, state, and federal regulations is crucial to avoid legal complications from arising when you start with your operations.

Consult with an attorney or business advisor, and consider using services like Tailor Brands, to ensure you follow the correct procedures and fulfil all legal requirements when setting up your LLC.

Developing A Clear Business Plan

A clear and comprehensive business plan is the foundation of any successful business. It is a roadmap that outlines your vision, goals, target market, competition, marketing strategy, and financial projections.
When developing your business plan, conduct thorough market research to understand your industry, identify your target audience, and analyse your competition. This information will help you position your business more effectively and create a unique value proposition.

Additionally, focus on creating a detailed operational plan that covers aspects such as production or service delivery, supply chain management, and customer support. A robust business plan guides your decision-making and becomes a valuable tool when seeking funding from potential investors or financial institutions.

Acquiring Adequate Funding

Funding is often a significant hurdle for startups, particularly in the early stages when the business may have yet to generate substantial revenue or establish a strong credit history. To overcome this challenge,

  • Start by assessing your financial needs
  • Calculate the capital required for product development, marketing, hiring, and operational expenses
  • Consider exploring various funding options such as personal savings, loans from financial institutions, grants for entrepreneurs, angel investors, or crowdfunding platforms

Each of these options have their respective pros and cons, so choose the one that best aligns with your business goals and long term objectives.

When presenting your business case to potential investors or lenders, emphasise the market potential, unique value proposition, and the expected return on investment. Prepare a compelling pitch deck that communicates the scalability and profitability of your business idea. 

Additionally, you can consider bootstrapping, that is to say, fund the business with your own savings, and work towards creatively cutting costs, in order to make the most of your money. This is how a vast majority of businesses get their start, and is in some ways an ideal approach.

In the realm of exploring strategic avenues for growth, engaging with a corp dev (corporate development) team can also be invaluable. These professionals specialise in mergers, acquisitions, partnerships, and other strategies that can bolster your business's position in the market. Leveraging their expertise can offer insights into potential growth areas you might not have considered. 

Much like bootstrapping, this approach requires a well-thought-out plan and an understanding of your business's strengths and weaknesses, but it can pave the way for accelerated growth and expansion.

Building A Strong Team

Assembling a capable and dedicated team is crucial for the success of any business idea. However, finding the right individuals who align with your vision, possess the necessary skills, and share your passion can be challenging.

To overcome this hurdle, network within your industry and attend professional events to connect with potential team members. Utilise online platforms and job boards that cater to entrepreneurs and startups. 

Conduct thorough interviews to assess candidates' experience, qualifications, and cultural fit within your organisation. 

Offer competitive compensation and incentives to attract and retain top talent, but while top of the line salaries are important, consider offering equity or profit-sharing options, as they can be attractive to individuals who believe in your business's potential for growth.

Wrapping Up

Starting a new business comes with its fair share of hurdles, but they can be overcome with careful planning and perseverance. Remember that entrepreneurship is a continuous learning process, so stay adaptable and embrace opportunities for growth and improvement. 

Any and all challenges can be successfully overcome with a bit of determination and street smarts, the only thing is to keep going no matter what you are faced with.

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