The dream of owning a business has never been more accessible. With the internet providing endless resources, tools, and platforms, anyone with a laptop and an idea can launch a business with little more than a website and a social media account. The allure of being your own boss, creating something from scratch, and earning on your terms is powerful.
But this rise in entrepreneurship comes with a unique challenge: the proliferation of limited barriers to entry businesses.
In theory, these low-barrier businesses are fantastic. They level the playing field, allowing almost anyone to step into entrepreneurship. However, from the perspective of those who provide services to these new businesses—consultants, marketers, web developers, and financial advisors—these low barriers create significant hurdles.
The Havoc Wreaked by Low Barrier to Entry Businesses
Many service providers today find themselves frustrated by the inconsistency and unpredictability of clients entering industries that don’t require significant upfront investment or expertise. Industries like dropshipping, digital marketing, coaching, travel advisors, real estate agents or e-commerce often attract a flood of new entrepreneurs who haven’t fully considered what it takes to succeed long-term.
The problem isn’t the new entrepreneurs themselves—it’s the challenge of identifying who is serious and who may be dipping their toes in the water without commitment.
This lack of discernment creates several issues:
- Unrealistic Expectations: These new entrepreneurs may expect rapid success without fully understanding the time, effort, and skill needed to build a sustainable business.
- Frequent Client Turnover: Many business owners don’t stick around long enough to see the fruits of the services provided to them, leading to high client turnover for service providers.
- Payment and Accountability Issues: Some clients may lack the financial planning to pay for services, or worse, they may drop off after a few months when they realize entrepreneurship isn’t for them.
So, how do you as a service provider distinguish between the serious entrepreneurs who will stick around and the ones who might flounder at the first challenge?
Identifying the Serious Entrepreneurs: Skills and Attributes to Look For
Here are a few tips for spotting clients who have the mindset and dedication to succeed in low-barrier industries:
- Clarity of Vision
A serious entrepreneur will clearly understand their business model, target audience, and value proposition. If a prospective client can articulate their goals in detail and explain why they’re pursuing a specific niche, it’s a strong indicator they’ve done their research and are in it for the long haul. - Willingness to Invest in Themselves
Low-barrier entrepreneurs often hesitate to invest in quality services, but serious entrepreneurs understand that success requires upfront investment. Whether it’s hiring a professional for branding, marketing, or operations, they are prepared to spend strategically to grow their business. Be wary of clients who bargain for the cheapest solution or who seem unwilling to invest in foundational business elements. - Problem-Solving Skills and Adaptability
Success in any business—especially one with low entry barriers—requires flexibility and the ability to adapt to challenges. Ask potential clients how they’ve handled setbacks or what their plan is for overcoming challenges. If they have no contingency plan or can’t handle the idea of failure, they might not be prepared for the reality of entrepreneurship. - Consistency and Patience
A key differentiator between hobbyists and true entrepreneurs is the ability to stick with something even when immediate success isn’t apparent. Entrepreneurs who understand that results take time are more likely to stick with the services you provide and follow through on long-term goals. - A Learning Mindset
True entrepreneurs are always learning—whether it’s new trends, skills, or strategies to stay ahead. When speaking with a prospective client, gauge their attitude toward learning. Do they seek out resources, ask insightful questions, and show a passion for continuous improvement? If they do, they’re likely to keep evolving as business owners and partners.
Final Thoughts
Low-barrier businesses aren’t going away, and many of them will grow into successful, thriving enterprises. However, for service providers, it’s essential to develop a system to discern who is genuinely committed and who might just be experimenting. By focusing on potential clients’ clarity, investment mindset, problem-solving abilities, consistency, and hunger for learning, you’ll be better positioned to serve those who are most likely to succeed.
Ultimately, it’s about aligning your expertise with clients who value long-term growth and have the resilience to see their vision through.
