Time & Money

The Top 10 Challenges you’ll Face as a New Entrepreneur (And how to conquer them)

So you want to be an entrepreneur and leave the 9-5 lives forever? I don’t blame you. I’ve been an employee and I’ve been an entrepreneur, and being an entrepreneur is way better. When I was an employee I was making 30k a year in salary. That 30k per year salary translated to about $17,000 per year money in my pocket.

That’s a pathetic amount of money, but I actually lived on that money. I had my own apartment, I had insurance to pay, I had an auto loan to pay and I had bills on top of that.I didn’t know that as an entrepreneur, even as a not very good one, you can make way more money than you would as an employee. As an entrepreneur I’ve made more money in single days than I made in full years as an employee.

Can you do the same?

Of course you can.

You will face challenges as an entrepreneur, but those challenges pale in comparison to the challenge of selling your soul for a paycheck.And there are easy ways to conquer those challenges…

Below are the top 10 challenges you will face as a new entrepreneur – and easy ways to conquer those challenges.

  1. Picking the RIGHT business

Pick the right business and your work, as an entrepreneur will get a whole lot easier.If your business doesn’t help people, doesn’t provide a solution, or doesn’t give people something they want then your business is shit and it will fail.

To do great business you should have a great product or service that you believe in. If you believe in it, you can get others to believe in it. When you don’t believe in something but you tell other people they should buy it you are laying and deceiving.

What you see is what you get should be the motto for your company. Remember one very important thing, your customers aren’t buying a product, they are buying you, So there is one very important thing you should always do – deliver what you have promised.

If you can’t deliver you should always offer a money-back guarantee. You never want people to feel cheated. You never want people to feel buyer’s remorse; you never want people to tell the world that your company is a scumbag company. Give them what they paid for. If you can’t give them what they paid for give them their money back.

The only way small businesses can have success is by delivering quality. If you can’t deliver quality you can’t make a living. I know it, you know it and your prospective customers know it too.

  1. Financing your business

How do you start a business when you don’t have any money? Good question, and there are two solutions:

  • Borrow money  – I HATE this idea for new entrepreneurs. Unless you’re experienced, know what you’re doing and you’re certain your business can succeed (and grow) you should not borrow a single dime.
  • Bootstrap – Use only a small amount of money and find a creative way to get your business going.

I’ve started only two successful businesses and I started both for less than $100 and I turned them both into top earners. I’ve never borrowed a dime to start a business. Personally, I don’t like the idea of starting a brick and mortar business, I like Internet business, The growth potential is massive and the costs can be as low as $15-$20 to get started.

  1. Finding customers

Finding customers is only a challenge if you don’t have a good product or service. If you have a good product or service then people will come to you, no need to spend hundreds or thousands on advertising. At least not right away.

There is a certain type of person who will be your customer. Not everybody in the world is buying what you’re selling, so your job is to simply find the people who are in need of your service.

Only try and sell to people who have expressed interest or desire in your product. Never waste your time trying to convince somebody to buy something they don’t already have an interest in.

Never, ever waste time on people who have no want or need for your product. That’s called being “pushy”. Nearly everybody hates pushy salesmen. These types of boiler-room salesman do a “hard sell” approach.

Pushy salesman = buyers remorse = refund requests = fewer profits = bad reputation = failed business.

Take a “soft sell” approach. Simply find people, who are interested, explain the product and benefits enthusiastically and let your customers decide what they want.

I will personally go out of my way to NOT deal with a pushy salesman, even if I’m interested in what they’re selling. I’ll buy from a nice, calm guy all day everyday before I give a dime to a pushy salesman.

There’s no need to be pushy, if you have a good product you can simply calmly explain your product’s benefits and let your customer decide and it’s win-win for everybody involved.

  1. When to quit your day job?

The right time to quit your day job is when you have a foolproof business opportunity or you have enough money in the bank that you can work on your business and not be evicted from your home.

You’ve got to have money to survive, so quit your job when you a) have a little money to work with and have a real business plan or b) are making an income from your entrepreneurial gig.

When I quit my job as the world’s worst insurance agent I had enough money to live for one month.

But…

I had two signed real estate contracts that I knew were worth some dough. So even though I quit with barely any money in the bank, I was certain I was going to make some money soon.

Those two contracts turned into $4,000 dollars in my pocket one month later.

4k sounds like nothing, but I was making peanuts as a pretend insurance salesman, that 4k saved my life and showed me what was possible, that 4k were the most important payday of my life. I was elated and I’ll never forget that feeling. That 4k proved to me that I was right in leaving the 9-5 live, that 4k were just the start of a 100k-year.

  1. Dealing with the stress of not having a steady paycheck

There is no other way to put it; it’s extremely stressful when you don’t know when or if you’ll be paid again.

My first business, real estate investing, I didn’t make a steady income; I’d score a big payday then have to wait and wait for another one. I made a few bucks extra per month (about $1000-$1500) but not enough to live on so I needed to constantly do new deals.

I was good at my work so I always had new deals in the pipeline, but it seemed like it was always down to the wire when a new deal finally came through and I had a check with my name on it.

One day it seemed like I was almost penniless, the next day I’d have a check for 10 grand. Living like that can be extremely stressful, so you’ve got to have the mental fortitude to power on, keep working, never give up and never go back to a “safe and secure” 9-5 job.

In real estate investing sometimes deals would fall through and I’d make nothing for my hard work, other times deals would fall in my lap and I’d score a huge payday.

Personally, I recommend a gig where you get paid more frequently; My Bold and Determined Empire pays me every single day, day in and day out, waiting a month or two between paychecks doesn’t happen to me anymore and its way less stressful, for this reason I really recommend opening a web-based business.

  1. Managing your money, legal protection, taxes

Managing your money can be a real burden if you don’t know what you’re doing and if you don’t know when your next paycheck is coming through.

I manage my money in a very simple way – I rarely buy anything. I pay my bills, I buy my food, I pay my gym dues and the rest is for business or for the bank account.

I don’t live on a budget, never have, I just don’t spend very much money unless I have to. When you’re building your business I recommend you live like a Spartan and don’t haphazardly spend your money. You may very well have some lean times ahead of you and you’ll want some money in the bank to help get you through.

On the other hand, nothing lights a fire like having no money and needing money. When I started Bold and Determined I had enough money in the bank to live for a year, so maybe it’s no coincidence that it took me one year to turn Bold and Determined into a profitable business.

Taxes

Taxes are a real pain. When you have a 9-5 job they steal, I mean take, taxes from your paycheck before you even see your paycheck. When you’re an entrepreneur your money comes to you first. So there are two very important things that you need to do:

  • Write off everything you can for your business. This will save you a ton of money in taxes.
  • Pay your taxes. It’s one thing to receive a de-taxed paycheck, it’s another thing to get out your checkbook and write a check to Uncle Sam. But you’ve got to do it, just make sure you’ve written off everything you can and taken every deduction you can.

You’ll keep a lot more of your money by preparing your own taxes rather than letting the taxman loot you. That’s the easiest, #1 step to making more money. The guy that makes 30k as an entrepreneur takes home a lot more money than the guy who makes 30k as an employee.

The taxman rips you off; he takes every cent he can. When you’re self-employed you’re in control of your taxes and you use write-offs to keep more of your hard-earned money.

Legal protection

You’ll need to set up your business as a business, not a hobby and not as a sole proprietorship.

When is the right time to open a business structure?

I wouldn’t open a business until a) you are making money or b) are absolutely certain of your business.

For Western world small business owners the best structure is an LLC taxed as an S-Corporation.

An LLC is a “pass through” tax entity. That means that the LLC itself does not pay tax, you pay tax on the profits you receive. The trick to reducing your tax liability is two-fold: start an LLC but tax it as an S-Corp. Pay yourself a small but reasonable monthly salary and once per quarter you can take out a chunk of the profits as a distribution. You will pay standard tax on your monthly salary but the quarterly S-Corp distribution is not looked at as employee wages so you will not have to pay social security or Medicare tax on this distribution amount

  1. Dealing with negative people, loneliness and self doubt

The Germans call it Schadenfreude. It means the pleasure people take in seeing others fail. If you have people like this in your life, as most of us do, there is only one solution: cut these energy vampires out of your life.

They’re a mental burden on you because they drain you of energy. Energy that you need to build and conquer. Give these people the boot and do it ASAP. If they aren’t on-board with you, then toss them overboard.

You often hear of successful people how much they’ve changed and how they don’t spend time with their old friends anymore. Successful people don’t have the time or the will to hang out with losers, so they cut them off.

With money and success comes choice that means you get to pick and choose who you spend your time with. And you don’t have to spend time with go-nowhere nudniks.

You also have the choice to not be lonely. The misconception is that if you don’t go to a 9-5 job everyday and hang out with office drones then you will be lonely. Not true. You’ll only be as lonely as you choose to be.

What about self doubt?

Self-doubt is simply a fear of success. It’s hard as hell to be superior and it’s easy to be average and it’s easy to give up and go work a 9-5 job.

All of us feel self-doubt at one point or another. An easy way to conquer self-doubt is to take a look around you and see all the people who have given up and ask yourself if that’s how you want live.

If that’s not how you want to see yourself then….

DON’T GIVE UP. EVER.

  1. Finding trustworthy business partners, building a reputation

It should go without saying, but I’ll say it anyway. Never go into business with scumbags. Going into business with a scumbag will give you a bad reputation. Your reputation will be linked to the scumbag, even if you’re a man of your word.

It can be hard to tell at first sight who is a scumbag and who isn’t, but you will always find out eventually and when you do find out you must instantly dissolve the relationship with the scumbag.

I had a business relationship with a scumbag, years ago. He scammed people for hundreds of thousands of dollars. People lost their homes. It wasn’t a nickel and dime hustle, the scumbag stole homes from people. I had already severed ties with the scumbag long before this issue so I came out of the situation cleans, legally and morally. But my name was still linked to the scumbag from prior deals. Even though this did not hurt my own business, it left a bad taste in my mouth and taught me a very valuable lesson: Cut scumbags out of your life forever. No 3-strike policy. One strikes, and then kicks them to the curb.

It’s not a moral issue, it’s not an ethical issue, and it’s an issue of having a clean soul vs. having a dirty soul. Scammers and scumbags never get away with anything because, even if they are legally in the clear, they still have dirty black souls that will haunt them.

If you help people you help yourself. If you hurt people you hurt yourself. You don’t have to be a toothy-fruity save-the-world liberal. Just be a man and do good business.

  1. Dealing with competition

John D. Rockefeller famously said “Competition is a sin” and I’d have to agree. Why bother competing when you can be an innovator and start something new?

3 years ago there was nothing like Bold and Determined and that’s still true today. Even though I have dozens of copycats (maybe hundreds) nobody can compare.

Tags

Related Articles

2 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Close
%d bloggers like this: