Entrepreneurship Difficulties by Industry
When starting a business, there are many things to look forward to. You’ll often find yourself achieving small goals, but you should also prepare for the many roadblocks ahead. Each industry has different difficulties, so let’s take a look at what difficulties you can expect if you start various businesses.
Restaurants
Starting a restaurant is a dream for many people. It can seem so easy to open a 5-star restaurant. In reality, it’s one of the most cutthroat industries and has many roadblocks. Staffing is one of the biggest issues. You can hire a stellar staff, but you also need to be present regularly to manage them well. Additionally, one bad staff member can sabotage your entire restaurant and maybe even make your customers sick. While there are many other issues with starting a restaurant, it’s no surprise that staffing problems are the cause of many restaurants closing.
Finance
If you want to be a financial advisor or investor, you’ll have to jump through many hoops. Not only do you need college degrees and certifications, but you’ll also need a running knowledge of products, markets, and new technologies (such as cryptocurrency). Angry customers can cause you to lose business, while noncompliance can bring about legal fees and fines. When starting a financial firm, you have to be prepared to answer to both your customers and the law. Juggling both responsibilities is enough to cause many people to give up, so don’t take this decision lightly.
Real Estate
Want to be a realtor? The flexible hours and sky-is-the-limit salary entice many people, but it’s not all that it seems on the surface. A real estate market crash can severely impact your income, and it’s impossible to predict when exactly one will happen. This makes planning for the future very stressful, as investing for retirement can leave you empty-handed when it matters most. Yet, not saving for retirement can ensure you’ll work well past the average age of retirees. On top of this, an unexpected expense may come when the market is down, hitting your bank account hard. If you plan to become a realtor, be prepared to save a substantial amount of money for a rainy day.
E-Commerce
One of the greatest innovations in the past few decades is the ability to sell items online. Whether it’s through a site like Amazon or Etsy, or on your own, it’s fairly easy to get started. However, there are many issues with selling online. The biggest problem I’ve seen is products getting ripped off by people who create cheap versions. These cheap items may sell better and lure away customers who would have bought your product. Worse yet — legal protections may not always help, so it’s important to keep in mind that this could happen to you.
Although there are benefits to starting a business, it’s important to remember that every business has downsides as well. While you shouldn’t let this fact crush your dreams, it’s also important to remember that starting a business is not easy. Knowing what to expect will help you be prepared and will put you in a better position to succeed.
