Three Biggest Challenges For Small Business Owners

You have always dreamed of being your own boss. You knew that the road wouldn’t be smooth, that there would be challenges along the way. Three hurdles business owners often have to overcome are lack of sleep, niggling self-doubts, and the challenge of finding the perfect pricing point.

Sleep: What keeps you up at night?

Many business owners and freelancers choose their path because they want independence and reject the idea of being a slave to a schedule. They want to be able to take time off to be with their families and do things they enjoy.

What often happens, however, is that when there are no set hours, no card to punch at the beginning and end of each day, instead of working from 9 to 5, entrepreneurs find themselves on call all the time. There are always emails from clients, orders coming in, the next promotion to work on, another innovative business strategy to think of. Predictably, you find yourself tossing and turning at night, unable to shut your brain down, until you give up and start answering those emails.

For a while, you might be able to go on, fueled by coffee and adrenaline, but don’t fool yourself. Burnout will hit, and it has a tendency to creep on unnoticed, befuddling the mind and thwarting productivity until your brain feels so sluggish that no matter how many hours you put it, you don’t seem to be able to get much done.

The solution? Obviously, it’s essential not to skimp on sleep, but it’s also vital to set aside time for proper relaxation before you lay your head on the pillow. A nice bath, a good book, working on a hobby, or a session of meditation or yoga might all do very well for that purpose. The key thing is to spend time away from your phone and its constant distracting messages.

Doubting Yourself?

Is your business idea even viable? Have you actually lost your mind, pouring so much time and energy into your venture? While it’s true that many businesses fail, your best bet would be to follow the stories of successful professionals in your field, learn from their journey, and try to see whether any of their strategies can be implemented in your case. Don’t be afraid to experiment – if plan A doesn’t work, try plan B, C, and D. I have seen entrepreneurs with great potential fail and give up too soon or, which is perhaps even more frustrating, work themselves to the bone for many years, barely able to keep their heads above water, all because they’re stuck on the treadmill, too busy to rethink their business plan.

Above all, remember that everyone, including Steve Jobs, started from zero.

Pricing: Are you over or under-pricing yourself?

Finding the right price point for your business is a tricky thing. Overprice, and you might ward off potential clients. Underprice, and you will hardly be able to break even.

There is no answer that is right for everyone. Many professionals go by the concept of billable hours, but this can be misleading. What if a certain task you perform for a client only takes you fifteen minutes to complete, but in order to get to that point, you have invested years of honing your skills, perfecting your strategy, and building connections? In that case, your client doesn’t just buy fifteen minutes of your time – they buy valuable skills and resources, so keep that in mind when setting a price.

Of course, when you are just starting out, you might have to compromise on price in order to build a client base, but overall, it is helpful to shift your focus from the hours you put in to the value you deliver. Not long ago, I had required the services of a lawyer. The lawyer charged me, for an hour’s work, what some people earn in a week – and I was happy to pay. I needed the service, it was within my budget, and it answered my purpose.

It would also be useful to compare yourself to successful entrepreneurs in your field. How much do they charge? You might not be able to get there at once, but this should give you an estimate of what you can expect to earn in time.

Your pricing doesn’t need to be rigid, either. You might decide you want to lower your price point for a project you know you will enjoy working on, or for a client who doesn’t currently have a large budget but whom you would like to develop a long-term professional relationship with. Alternatively, you can raise your fee if you are negotiating with a client who is able and willing to pay more.

Remember, nothing is set in stone, and you are entirely free to try several pricing approaches until you find one that works for your business.