For both experienced entrepreneurs and the novices, the fresh starters, it is always both mixture of good feelings and butterflies in the tommy venturing out into a new business. There are always some uncertainties while the excitement of making progress wells up the mind.

In this edition of Personal Finance, we look into some of the challenges that may be stoking the uneasy feeling for a startup venture, and make some suggestions on how to sidestep them.

Lack of Adequate Information: Obviously if you are not at home with the nitty-gritty of any venture, a grope in the dark portends real danger in the horizon. This is no rocket science and the solution is simple; go for the information, not just any information. This calls for sufficient business research focusing on these areas, viz, product/ service standard, market size/ structure/ location, customer behaviors, costs, deliveries/ logistics, completion, and some peculiarities of that particular venture.

State of readiness: The business research should tell you if you are really ready to commit resources, if you are good to go. This is further amplified by a business plan. Without this good-to-go state of readiness you are likely not ready to succeed even if you feel you want to.

It is usually said that failing to plan (adequately) is planning to fail. Adequate plan should outline goals, strategies, financial projections and operational processes. Neglecting to create a comprehensive business plan can lead to a lack of direction, poor decision-making and difficulties securing supports. 

Money problem: Startups all over the world battle the problem of lack of sufficient startup capital, though in developed world their some institutional arrangements that address this challenge. But in Nigeria, there is practically no such support. So, it’s important to accurately estimate your startup costs and have it in the plan how to cover initial expenses, as well as sustain the business until it becomes profitable, otherwise you may get stuck somewhere early in the business take off.

Competition headache: If your product or service has established competitors you are likely to have enough headache breaking through the market. However, innovation and creativity deals with this difficulty. You can’t just be doing the same thing that the more known competitors are doing and hopes to survive. Failing to identify and communicate a unique value proposition can make it challenging to attract customers and gain market share. Determine what sets your business apart, and emphasize those qualities to stand out in the market.

Marketing and customer acquisition: How do you get your first set of customers will determine how far you can go in sustaining the business in the early stage.

Without ensuring patronage from the start, the venture may be dead on arrival. Marketing may be expensive but social media platforms have offered some soft landing you can leverage if you are savvy in deploying it.

Inadequate team and leadership: Building a skilled and motivated team is crucial to the success of your business. Surround yourself with capable individuals who share your vision and bring complementary skills to the table. Poor leadership and a lack of competent team members can hinder growth, decrease productivity and lead to internal conflicts.

Regulatory requirements: Complying with legal and regulatory obligations is essential for any business. Failure to do so can result in fines, legal issues or reputational damage. Research and adhere to all relevant laws, such as licenses, permits, taxes, employment regulations, data protection and industry-specific requirements.

Lack of resilience and perseverance: Starting a business can be challenging, and setbacks are inevitable. It is important to develop resilience, adaptability and perseverance to overcome obstacles and learn from failures. A positive mindset and the ability to bounce back from setbacks will contribute to long-term success.