The Challenges of Starting a New Business

Starting a new business is an exciting yet daunting journey, I’ve done it myself 3 times all with different levels of success. Realistically, I believe you learn as you go and my latest business is the best for me of all the 3 iterations of setups that I have started in the past. While the rewards of entrepreneurship can be great, the challenges are numerous and often unexpected. One of the biggest hurdles is securing funding – thankfully for me, the level of entry was low, as my area was web development and digital marketing. Many entrepreneurs struggle to find investors or obtain loans, making it difficult to cover initial costs like equipment, marketing, and hiring employees. 

Another significant challenge to starting a new business is market competition. Entering an industry with well-established businesses can make it hard for a startup to gain traction. If you are starting out you are always looking at the big players in the industry and you might find yourself constantly judging your business against the giants in your industry. Without a unique value proposition or a strong marketing strategy, new businesses may struggle to attract customers; so you need to find what makes your business different and use this to your advantage.

Managing operations effectively is another key difficulty. Entrepreneurs often have to wear multiple hats, handling sales, customer service, product development, and finances all at once. This can lead to burnout and inefficiencies if not managed properly.  One huge lesson I learned in my first business is to always rely on experts to assist you with areas for which you don’t have the key skills. I would recommend that you focus on having good Sales & Marketing and also a solid Accountancy team at your back, even if they are outsourced.

Additionally, regulatory compliance and legal requirements can be overwhelming. Depending on the industry, businesses must navigate complex tax laws, permits, and employment regulations, which can be costly and time-consuming.  This is especially hard if you have employees, if you are registered for VAT or if you deal with other countries and their import/export terms.

I have many friends who have set up new businesses in the past, only for them to fail due to issues such as problems dealing with imports and customs, funding, time management, skill sets, and sometimes just dedication. My most recent client totally ignored the power of social media, and only posted 6 times in 8 months and had not posted on YouTube in over 7 years.  There is something called the Digital Marketing Mix and you should be aware of the areas where you need to focus on and that is what I do in my business – helping companies develop their online presence and online marketing.

I do enjoy supporting friends, family to colleagues who have taken the decision to setup a new business. Not only because it is a brave step but also to help them on their way as they start out – as the first year or two are often the most challenging. One of my friends recently started a new video and media enterprise. They are based in Bristol and they have more than a decade of experience in everything from business promotional videos, to live event broadcasts and documentary film productions. As discussed above, both Ryan and Xander wear many hats in the company, from Directors to DPs, from Colours Graders to Cameramen, from Editors to Lighting Engineers. So if you are looking for video production check out River Axe Media and Video Production – I share this because I just like promoting the new entrepreneurs, ready to take the plunge and live the dream.

River Axe Media, Video Production Bristol

In conclusion, I think maintaining persistence and adaptability is crucial while always keeping an eye on finances and future business opportunities. Many startups face setbacks and failures before achieving success. Overcoming these challenges requires resilience, strategic planning, and a willingness to learn from mistakes. With careful preparation and determination, entrepreneurs can turn these obstacles into stepping stones for growth. For me, my business continues to grow and I continue to learn and develop.