What are the main disadvantages of starting a business, and are they insurmountable? Let’s see what are the negative aspects to consider before deciding on an entrepreneurial adventure.
In recent years, the number of business start-ups has been increasing, particularly driven by the micro-enterprise regime (formerly self-enterprise).
Becoming an entrepreneur is a vocation for some, a way to supplement your income for others. But in any case, it is important to have a realistic vision of what awaits every future entrepreneur. But objectively, what are the disadvantages of creating your business?
As you know, creating your business can bring great satisfaction, but it is also accompanied by disadvantages that are difficult to circumvent.
- Financial insecurity
This is what entrepreneurs fear the most. Too low profitability, seasonal effects, unforeseen events, problems with the need for working capital or cash, financial insecurity is a recurring, and sometimes permanent threat.
The only remedies are rigor and anticipation:
- carefully conduct your market research (click to read the best methods),
- establish a realistic financial forecast (click to download our free Excel tool),
- put in place a real risk management strategy,
- carry out daily cash flow monitoring (see our dedicated Excel tool),
- limit your initial remuneration.
- Administrative and fiscal constraints
Accounting, tax and administrative constraints can cause atrocious migraines for entrepreneurs. If you do not feel comfortable in these areas, it is more than advisable to get closer to qualified professionals (accountants, independent secretaries…).
- The time spent
Finished the 35 hours, hello the 50 hours (or even the 65 hours in a rush period)!
Your days may be very long during the first months of activity, and yet your turnover will not necessarily keep pace. At a startup, it is common to have to make a significant personal investment to prepare for the future.
Do not be discouraged and persevere. Creating your business is an endurance race, not a sprint!
- The disadvantage of loneliness
Creating your business (uk companies registry) means setting foot in a universe unknown to most people around you. You may find yourself helpless in the face of the remarks of your loved ones, or alone in the face of the difficulties and stress related to your activity and status.
To help you: get closer to business creator clubs in your region (for example the BNI),
integrate an incubator, nursery, or coworking space.
Working with other business leaders is even essential to feel understood and supported!
- Create your business: the tensions of start-up
Starting a business is an extremely time-consuming and stressful step. Everything has to be done!
You will have to juggle production, marketing and administrative management, while finding a new personal and family balance. This is a period of adaptation, during which adjustments will have to be made in all aspects of your life. Be careful to protect your loved ones!
- The problem of financing
As a business creator, it will not always be easy for you to convince financiers to invest in your project.
Your forecast figures are not a guarantee of success. You will have to convince through figures based on estimates of a fictitious activity (unless it is a recovery): an insecure situation for any financier.
You will most certainly be asked for a personal contribution or guarantees to prove your real commitment to the project.
In case of bank refusal, do not hesitate to turn to other solutions, such as micro-credit or crowdfunding.