I think the key to all three of these elements is to have the right people helping you. I’m an author, and I’m very good at what I do. However, when it comes to website coding and design; or building up my own business from scratch, I’m a small fish swimming in a very huge lake.

I’ve been recently toying with the idea of getting an online partner, someone who’s not a writer, but who’s able to fix a problem on one of my blogs in the click of a finger. I’ve seen some start up companies on the Internet which will help you with things like registering your online, company formation in Hong Kong etc. My blog needs something like this because I’m ready to hit a higher deck where writing and blogging is concerned. Please let me know if you’ve used anyone affordable.

This is a paid sponsored post provided by Startupr.com. The options of this article are not necessarily that of Dorm Room Biz or it’s owners.

Legal Barriers

Before opening a business in the United States, proprietors must jump many legal hurdles, including:

• Zoning restrictions
• Licensing and training requirements
• Restrictions on the legality of the business
• Protection of crucial business processes by copyrights and patents
  

  

• Special legal regulations, such as ingredient labeling for food products

Competition

One of the most obvious barriers to entry is too much competition from large chains with low overhead and deep pockets. If there is too much competition, your prices are pushed lower and your profit margin shrinks. Oddly enough, there is also such a thing as too little competition. If you are introducing a new service and you have no competitors, consider the possibility that you will have to build product awareness.

Lack of Funding

It’s a classic Catch-22: you can’t get a business loan until you prove that you can make money, but it’s hard to prove yourself until you have the capital to give it a try. For this reason, many business owners find themselves dipping into their own savings to get started, or turning to friends and relatives for an initial investment. Business entrepreneur Ehsan Bayat actually received funding from the U.S. government to start Afghan Wireless overseas as there was no competition in that market.

Lack of Physical Capital

In addition to an overall lack of funding, it may be difficult or expensive to acquire some of the tools of your trade. This is particularly true for entrepreneurs who will need a workshop full of costly equipment, such as a furniture maker who needs a woodshop. In addition, building codes and food safety inspectors may require you to upgrade your work space in order to protect the safety of your workers and your customers. Your liability insurance company may also require additional safety measures.

Lack of Resources

Sometimes it’s not a lack of money that kills a small business, but another lack of resources. If you are working a second job or caring for a family, you might not have enough time to devote to your business. You’ll also need emotional support from your family, especially your spouse. In addition, you should consider the resources that your city has to offer. Are there enough qualified workers in the area to staff your company? Is the shipping and transportation infrastructure adequate?

As you consider whether to start your business, consider whether you have the passion and the resources to overcome the obstacles. If nothing else, it will prepare you for the worst.

When she’s not organizing parties, Louise Baker writes about online colleges at Zen College Life. She recently looked at where to get the best court stenographer degree.

In my short video review of the book Bootstrapping: Weapons of Mass Reconstruction by Sramana Mitra, I mentioned that she brings up the topic of mental capital. At many points throughout the book, Sramana talks about why entrepreneurs and start-ups should not go looking for venture capital, but instead focus on bootstrapping their business…hence the name of the book.

As a substitute for venture capital, she recommends getting as much mental capital as you can. Mental capital is the idea of utilizing the people around you (friends, family, mentors, and other business people) as your mental investors. It sounds pretty simple though – instead of going after venture capital (real money to surge into your business), bootstrap your business and gather as much mental capital (knowledge from other entrepreneurs, mentors, and business people) as you can. The mental capital that gets invested in your business by other people around you can be so much more beneficial to you and your company that it would worth more than any amount of venture capital.

As a young entrepreneur it’s important to soak up and get as much mental capital as you can. Talk with everyone around you, and more importantly, listen to everyone. Ask questions, discuss your business, get feedback, and then use it! If you’re a student entrepreneur, you even have another huge advantage over other young (recently out of college) entrepreneurs – you have so many more resources on campus: Your professors, library, resource centers, etc. Utilize them all, now.

Don’t let peoples suggestions just glaze over your head or in one ear and out the other. Be thankful for the time that people spend in giving you feedback, ideas, considerations, and sharing their contacts with you.

Now, go out there and get as much mental capital as you can and you will crush it.