Freelancing and
entrepreneurship are referred to as the fields where one can live on his/her
own terms. Basically, it's about freedom that is said to be impossible in a
job. But these routes are not as straight as they sound.
Even when these fields
are praised for their freedom of work, there are problems related to
freelancing and entrepreneurship. In today's blog, we will look at some
challenges that a freelancer or entrepreneur faces the most.
Challenges in Freelancing
1. Managing
the Money
When you freelance,
almost everything goes according to your plan, whether the work you are doing
or the time you need. At least you get control over some factors to work
better. But, a significant problem freelancers face is getting money on time
and managing it to keep cash in reserve. Unlike a 9-5 job, you can't expect a
fixed amount of money to be credited to your account on a fixed date. The
payments keep coming throughout the month based on when you sent the invoice.
Moreover, payments often get late, making cash management even harder.
2. Trying
to Get Paid More
The freelance landscape
is too competitive to get paid more. You will always find fellow freelancers
providing the same services as yours for lower rates. That's why you have to
keep your prices lower to lure clients. However, there's a solution to this
problem that's working on your skills to enhance the quality of your service.
By doing this, you will get clients who will pay you extra with no ifs and buts
because they are in search of quality and not quantity.
Challenges in Entrepreneurship
1. Getting
Valuable Team Members
When you choose to be
an entrepreneur, there are some problems that will surely come to knock on your
door. One of these problems is getting team members who want to add value to
your business in the initial years. While for an established business, it may
come as a huge problem, for entrepreneurs, it's one of the most significant
problems.
Hence, it's important
that the objectives of the team you onboard in your years of business align with
your objectives.
2. Getting
Funds at Good Valuation
Securing funds from
investors is necessary for businesses to keep their operations running
smoothly. In the early stages, when you are not making a few to zero profits,
it's a crucial source of capital to put into the business. However, a problem
with securing funds is getting devalued.
Investors often devalue
the business made by an entrepreneur to lower their risks. But, it's not good
for your business as getting devalued means you will have to dilute more to get
enough funds. Additionally, it can create a cycle of devaluation in every round
of your fundraising. So, you should ensure you are not raising funds if
investors devalue your business.
Final Words
These are the
challenges that freelancers and entrepreneurs face. However, it doesn't mean
that you should not choose these fields. It's just to make you aware of
potential challenges in these fields. People mostly overlook these problems,
which results in failure. So, if you acknowledge them in your initial stage,
your experience in these fields will be much smoother.
