In the world of business development, there can be a prevailing thought that if the right amount of technical and financial assistance is provided to a startup concern then a successful launch and business growth will be the result. Both resources providers and founders themselves can have this view. It can sound something like this…”if we just provide the right guidance and assistance” or “if I can just get the funding I need to start”. No doubt, guidance and funding are critical components of a successful business. However, in business as in life, nothing is a sure bet and there are plenty of land mines along the way both internal and external.
Typical business barriers that come to mind include things like lack of capital, economic conditions, competition, inability to get traction and visibility in the marketplace. For startups that are in a hurry to get started, there can be other hurdles such as regulations, underestimating the startup costs, or growing too fast which will cause financial hardships. There can also be a lack of customer focus which can lead to providing a product or service that customers do not want or are unwilling to pay for. Unless you solve a problem that the customer is willing to solve, the demand may be less than expected.
These barriers are ones that we address regularly with our clients and are the typical ‘culprits’ which stop or impede a business’ success. However, an often-overlooked area is the personal aspects of the business. Even with all the best guidance and adequate startup funding, the best business plan will not be successful without proper execution. The founder needs to have good decision-making skills, tenacity to follow through, good people skills, and the ability to take in new information and pivot as needed.
That said, we should not overlook the psychological barriers that may hinder a startup company. Founders may struggle to grow (or even start) a business due to a fear of failure, perfectionism, fear of rejection, imposter syndrome or inability to accept a certain level of risk. Starting and growing a business requires the founder to stretch their comfort zone which is not always easy.
It is important to understand this landscape of potential landmines and coach new founders to be aware of them. We also must be aware that success is in the eye of the beholder. Each business owner defines their own success and the type of business they wish to create. We can be here to support them in that mission.
Kelly Weaver is the Regional Director of the Small Business Development Center in Aberdeen which offers free, confidential business consulting to start up and existing businesses. She can be reached at (605) 698-7654 x 144 or kelly@growsd.org. The Center is hosted by GROW South Dakota.
