5 Challenges and Solutions For Working-Class Entrepreneurs
Starting a business while still working your day job comes with its bag of challenges.
These obstacles can be daunting and range from financial constraints to lack of crucial skills, and even experiencing stress and burnout!
It can be quite tough. But guess what?
This should not hinder you from achieving your business dreams as a working-class entrepreneur.
The secret is knowing the most common challenges you’re likely to encounter in your entrepreneurship journey in advance.
This way, you’ll know how to deal with them — or completely avoid them in the first place — ensuring you enjoy a successful entrepreneurship journey.
In this article, we’ll address the top 5 most common barriers aspiring entrepreneurs with full-time jobs keep complaining about.
We’ll also offer practical solutions to consider for each of these problems.
Let’s dive in!
Challenges and Solutions Working-Class Entrepreneurs Face
Here are the most common struggles faced by working-class entrepreneurs and the best solutions for each of them:
#1. Limited Access to Capital
Probably the biggest challenge most budding entrepreneurs deal with is getting the much-needed capital for starting and growing their businesses.
You may argue that there are many avenues for securing loans such as credit unions and banks.
However, the truth is that these options usually present obstacles to the employees.
For instance, many 9-to-5ers usually fail to qualify for traditional loans, probably due to poor credit history or lack of an asset to offer as security.
This makes banks unwilling to undertake the risk of lending money to aspiring entrepreneurs.
Unfavorable interest rates(i.e. high interest rates) can also make it challenging for aspiring entrepreneurs who secure loans to maintain financial stability and achieve profitability.
Solution: The best solution here is to explore alternate funding sources to help you access the capital you need for your new startup.
One such option is microloans (usually offered by non-profit organizations) or community development financial institutions. These will offer you small amounts of capital at more reasonable rates than banks.
Community-based lending, in particular, prioritizes local economic development, making it a valuable resource if you lack traditional financing.
You may also consider crowdfunding as an alternate funding method. This method has become such a powerful tool for raising capital for startups from a large number of people all over.
Platforms such as Kickstarter, GoFundMe, and Indiegogo will let you pitch your business idea to a broad audience who then raise funds to support you.
A hidden benefit of this approach is that it helps you build a community of early supporters and potential customers for your business.
You may also consider crafting a strong business plan to help you attract investors (whether they’re angel investors, venture capitalists, or simply individuals) to fund your startup.
A good plan should demonstrate to your potential investors that you have a viable, well-thought-out plan for success, thus increasing the chances of securing funding.
#2. Balancing Job and Business
Another challenge you’ll face as an employee running a business on the side is being able to balance between the two.
As you may already know, working a full-time job while running a business will require you to possess exceptional time management skills.
Unfortunately, most employees usually end up struggling to allocate sufficient time to both their business and their job — leading to missed opportunities and inefficiencies in both areas.
Besides, this constant juggling of multiple responsibilities can be so much for you that you may end up experiencing both physical and mental exhaustion.
It’s not unusual to hear employees-cum-entrepreneurs complaining about experiencing stress, burnout, and fatigue.
These can greatly affect your productivity and overall well-being.
Solution: One of the best solutions for this issue is working on time management.
We suggest adopting effective time management techniques such as prioritizing the most important tasks and working on them first.
This gives you peace of mind knowing that the most important aspects of your job and business have been taken care of.
You should also consider delegating; assigning less important tasks to others within your business or outsourcing some functions.
This way, you end up freeing up more time to work on the most important activities of your business and job.
If working a full-time job and running a business is too much for you, you may also consider shifting from full-time employment to part-time work or becoming a freelancer.
This strategic decision will enable you to enjoy a steady income flow while finding sufficient time to work on your startup.
Utilizing productivity tools and apps can also help you streamline tasks and improve your overall efficiency.
Time-tracking apps such as Toggl can help you track how you spend your time and make the necessary adjustments.
Tools like Trello, Todoist, and Asana can help you organize your tasks, set deadlines, and track your progress.
#3. Lack of Business Knowledge
It’s not uncommon for aspiring entrepreneurs with the urge to succeed in the business world to dive into this whole new world without first equipping themselves with the necessary knowledge for managing a business.
You may have a great business idea, but if you lack the necessary foundational knowledge for effectively running a business, sustaining and growing it can be challenging for you.
While there are training resources to help you run a business, they may be inaccessible to you due to high pricing or they could simply be time-consuming for you.
This further contributes to lacking the know-how to run your business.
Solution: Look for online courses(could be free or low cost) that will equip you with the crucial skills for running a business such as understanding daily operations, managing finances, developing effective marketing techniques, etc.
The internet is a treasure trove of educational resources that you need to effectively run your business.
Look for experienced entrepreneurs to act as your mentors. These will share their knowledge, offer valuable advice, and help you navigate the business world.
Networking through online forums and local business meetups can also promote sharing of knowledge and collaboration.
#4. Competition (and Market Saturation)
Another challenge faced by most working-class entrepreneurs is navigating the competition and market saturation in their business.
One of the hard truths about the business world is that many markets are dominated by established businesses that enjoy loyal customer bases and strong brand recognition.
Thus, as a new entrant, you’ll often find it quite challenging to stand out and get the attention of your target audience.
High competition levels can give you a hard time gaining a foothold and building a sustainable customer base.
As we discussed earlier, one of the hurdles you may experience is the lack of sufficient funds for your business. This also means that you may lack enough capital to invest in marketing.
As such, it becomes even more challenging to do large-scale advertising campaigns or employ high-cost marketing tactics that could boost your visibility and help you capture potential customers’ attention.
Solution: One of the simplest approaches to dealing with the high competition issue is focusing on niche markets with minimal competition.
Take your time to identify specific customer needs or underserved segments and then tailor your products/services to cater to these demands.
This approach will not only help you water down the competition but also create a loyal customer base that values your business’s unique offerings.
If you lack enough marketing budget, take advantage of social media and digital marketing strategies, which offer you more cost-effective ways of building brand awareness and reaching out to potential customers.
Platforms like Facebook, Tiktok, LinkedIn, and Instagram will let you reach a wide audience without making significant financial investments.
Digital marketing techniques like content marketing, email marketing, and search engine optimization (SEO) will also enhance your online presence and help drive traffic to your business.
Collaborating with other small businesses for mutual benefit is another way to deal with high competition.
For instance, partnering with businesses offering complementary products or services can help you expand your reach and attract new customers.
Joint marketing efforts with other businesses can also help increase your visibility and generate revenue without the need for crazy marketing budgets.
However, if you are looking at going into e-commerce, then the competition should be the least of your worries.
Read this page to find out how
#5. Stress and Burnout
Starting and running a business successfully is never a walk in the park. This is not just for the working class but also for every other business owner.
At some point, you’re highly likely to suffer stress due to constantly worrying about securing funding for your business, maintaining cash flow, and ensuring profitability in your business.
This constant worrying can result in high levels of stress.
Additionally, the pressure from within to succeed and meet all your business goals can breed anxiety which often leads to burnout.
Sometimes, the entrepreneurship path can be quite lonely, especially if you do not have a network of like-minded individuals with whom you can exchange ideas and support each other.
Such scenarios can amplify the feeling of isolation and result in mental health issues.
Solution: Implement the tips below to help you combat stress and prevent burnout when working your day job and running a business.
Put your health first to maintain your overall well-being and manage stress.
After all, you can’t focus when you’re unwell.
Consider regular exercise, sufficient sleep, a balanced diet, and mindful practices (e.g. meditation and yoga) to help keep your stress levels in control
Schedule regular breaks and set boundaries between personal life and work to help prevent burnout and keep you productive at all times.
Build a support network of fellow entrepreneurs and mentors who can offer you much-needed guidance and support in the business realm.
Networking groups, local business associations, and online forums can also be good avenues to seek advice, share your experiences, and offer encouragement.
A good support network keeps away the feelings of isolation while offering you practical tips for overcoming any challenges you may be facing in your business.
Don’t hesitate to seek professional counseling or therapy. Sometimes the entrepreneurship pressure can be quite overwhelming and you may hit a point of no return.
In this case, we advise you to seek professional help.
Therapists will offer you a safe space for discussing your challenges, processing emotions, and developing coping techniques.
This helps you navigate your entrepreneurship journey more healthily.
Implementing these stress management tips not only helps keep your physical and mental health in check but also improves your resilience and the ability to overcome different business hurdles.
Conclusion
Starting a business on the side as a full-time employee can be a quite rewarding experience, but it comes with its own set of challenges.
We have just discussed the most common challenges working-class entrepreneurs experience and potential solutions to them.
These issues include lack of enough capital to start/run a business, lack of business knowledge, finding balance between your job and business, high competition and market saturation, and stress and burnout.
By understanding these challenges well in advance and implementing the solutions discussed in this article, you’ll be able to confidently pursue your business goals without suffering any major setbacks.
Want your very own 6-figures/mo e-commerce store set up and run for you? Or do you need help scaling yours past its current MRR? Don’t hesitate to reach out to us and we’ll get everything set up and running for you in no time.
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