Entrepreneurship is still a buzzword. But as had been pointed out here, and as many new entrepreneurs must have realized, entrepreneurship is not a walk in the park (or to the bank). We spoke with a new entrepreneur, one year immersed into her business, and asked what are the more difficult aspects of starting a business (for the benefit of budding entrepreneurs, you may also want to share your experience when starting your entrepreneurial endeavor; please use the comment section below).

Dealing with partners. Having fellow shareholders in a corporation spreads the risk and work, but it also naturally creates friction. It could be the distribution of work, sharing of benefits or some other matter. This should be clear to the partners from the start.

Getting a merchant account. This enables the business to accept transactions through credit cards. Credit card companies have different requirements and are doubtful of new businesses. There’s also an add-on charge to take into consideration in setting the price of goods or services.

Finding time to be hands-on. This is particularly difficult for someone who has a day job or who has a family. Running a business isn’t a sideline, although Robert Kiyosaki would say that the trick is to find an investment that requires less time from you.

Controlling costs. A start-up business is naturally in the process of creating its market and building its revenues. The costs, however, are present from day one. It takes a while before income/sales is breakeven with expenses. Profit or return on investment (ROI) may even take much longer. It’s important to set up a good system of tracking expenses and revenues.

Registration and permits. Not a problem if you have your lawyers handle this (except that it’s an additional cost). You could, of course, do this yourself (Ed. – see Business Registration section), but this entails time and effort, better focused on marketing and revenue-generating activities.

Making your business known. In short, marketing. How would your target market know that you even exist? There are many available options nowadays with the internet. The challenge is to be creative in marketing.

Finding the right personnel. It’s ironic that despite the high level of unemployment these days, it’s very difficult to find competent and trustworthy people to work for you. You could probably do the work during the start of the business, but this is impossible as the business grows and as you focus on crucial tasks such as marketing.

Taxes. What are the taxes to pay? Withholding on income tax? Withholding on rent? Monthly value added tax (VAT) reports? Annual income tax returns? Deadlines of filing tax returns? What forms to use? What documents must support the items in the tax forms? It could be frustrating.

Financing. Running a business requires capital. It’s easy if you have a rich family. Banks and other lending institutions are, again, distrustful of new enterprises.

Competing with big players in the industry. Marketing your business is one thing; doing that while at the same time competing with established and highly capitalized businesses is another. Some say it’s important not to have a head on confrontation with established businesses. There are a number of strategies discussed in business books and articles.

• Moving out of Comfort Zones and Starting your Own Business
• Starting a Pawnshop Business
• Entrepreneur: Nature or Nurture (Origins of the Entrepreneur)
• Entrepreneur vs. Employee: Why can’t everyone become Entrepreneurs?
• 10 Outstanding Entrepreneurs of 2008 (Entrepreneur Philippines)
• Entrepreneur Guide: The Parties (Contract Series)
• Entrepreneur Guide: The Term or Period (Contract Series)