Whether you’re just starting out or a few years in, you know career obstacles are inevitable. Maybe you haven’t hit a major one yet, but you want a game plan for when you do. It’s smart to be prepared. After all, knowing how to move your business past barrier after barrier is key to long-term success. I wanted to help, so I sat down with several incredible women who have navigated these challenges. They’re sharing their hard-won wisdom on how to handle these situations with confidence and grace.
Our marketing team has prepared a segment that displays a couple of questions answered by several successful women in different industries to help the next generation understand how to overcome some of these obstacles in the workplace.
Our team interviewed University Of Central Oklahoma Professor Caroline Humphreys about some obstacles she may have faced during her career as a businesswoman.
What Are Business Barriers?
When we talk about “barriers” in a career, it can feel like a big, intimidating word. But really, it just means there are obstacles that can make it tougher for someone to get started or succeed in a new field. Think of it like trying to join a book club that’s been meeting for years—the long-time members already have a rhythm and inside jokes, and it can take a bit of effort to find your place. These hurdles aren’t always about money; sometimes they’re about who you know, the reputation you need to build, or just learning the ropes. Understanding what these barriers look like is the first real step to figuring out how to get around them and build something lasting for yourself.
Defining Barriers to Entry and Exit
In the business world, there’s a formal name for these kinds of challenges: barriers to entry. At its core, a barrier to entry is any hurdle a new person or company has to clear that the established players in the field no longer face. This can create an uneven playing field right from the start. For example, a local hardware store that’s been in town for 50 years has a level of trust that a brand-new shop has to work hard to earn. It’s also good to know about barriers to exit, which are things that can make it difficult to leave a market if things don’t work out, like a big financial investment you can’t get back. Knowing about both helps you make smarter moves from day one.
Classifying Different Types of Barriers
Not all obstacles are created equal, so it helps to know what you might be up against. Some of the most common types of barriers involve things like brand loyalty. If everyone in your community is fiercely loyal to one particular bakery, opening a new one right across the street is going to be an uphill battle. Another barrier is something called “economies of scale,” which is just a business-savvy way of saying that bigger, established companies can often make or buy things more cheaply than a small startup can. Recognizing these different hurdles isn’t meant to be discouraging; it’s about arming you with the knowledge to build a better game plan.
Primary and Ancillary Barriers
We can break these obstacles down even further into two types. Think of a primary barrier as a giant boulder in the middle of your path—it’s a single, major issue that can completely stop you in your tracks. Maybe you need a specific, expensive certification to work in your chosen field, and without it, you simply can’t start. Then you have ancillary barriers. These are more like a patch of stubborn weeds around the boulder; they don’t stop you by themselves, but they make dealing with the main obstacle even harder. For instance, not having connections in the industry might make it tougher to find a mentor to help you study for that certification. Seeing the difference helps you figure out what to tackle first.
Antitrust Barriers
Finally, there are antitrust barriers. These are a bit different because they often involve rules or market conditions that are set up in a way that unfairly delays new people from entering a field. It’s like playing a board game where the instructions give one player a huge head start, making it almost impossible for anyone else to have a fair shot at winning. These barriers don’t just hurt the newcomer; they can stifle competition and new ideas for everyone. While these big, systemic issues can feel overwhelming, just being aware that they exist is a crucial part of understanding the professional world you’re stepping into.
Q: What has been the most significant barrier in your career?
A: Her Response: One barrier I believed I faced overtime was the career world’s lack of flexibility and options. As women, sometimes we are asked to choose whether we’re career women or mothers.
Having more flexible options and paying for what I believe I am worth when my children are younger helped-just the idea of something between being a career woman and motherhood. At times, I did have to choose between staying at home with my children and not choosing to work, but having these breaks in my career made my resume look like a dotted line, which is still a problem in our society.
Common Barriers to Entering a Market
Professor Humphrey’s experience shines a light on a common problem: feeling like you have to choose between your career and your family. This feeling of being blocked from a path you want to take isn’t just a personal one. In the business world, there’s a whole set of concepts for these kinds of obstacles, known as “barriers to entry.” While they usually describe challenges for new companies, they offer a powerful way to think about the hurdles we face in our own careers. Let’s look at some of these common business barriers and see how they might feel familiar.
Economies of Scale
Imagine a huge bakery that makes thousands of loaves of bread a day versus a small, local shop just starting out. The big bakery can buy flour and yeast in massive quantities, getting a much better price. This means they can produce each loaf for less money. This concept is called economies of scale. For a new business, it’s a major hurdle because they can’t immediately produce things at a large enough volume to lower their costs per item. This makes it incredibly difficult to compete on price with established players who have had years to grow and streamline their operations.
High Startup Costs
Some industries are just plain expensive to get into. Think about what it would take to start a car company or develop a new medical device. You’d need factories, specialized equipment, and a ton of money for research and development before you ever sold a single thing. These high startup costs can be a massive wall that keeps new, innovative ideas from ever getting off the ground. It’s a barrier that favors those who already have access to significant financial resources, making it tough for smaller entrepreneurs to even enter the game.
Customer Loyalty and Brand Identity
We all have our favorite brands—the coffee we buy every morning or the jeans we know will fit just right. That trust and familiarity create strong customer loyalty. For a new company, breaking through that loyalty is a huge challenge. Established brands have spent years, and often millions of dollars, building their reputation and identity. Customers are often hesitant to risk their money on an unknown product when they have a trusted option readily available. It takes a lot of time and consistent effort for a new name to build that same level of confidence.
Customer Switching Costs
Have you ever thought about switching phone providers but decided it was too much of a hassle? You might have to pay a fee, get a new number, or transfer all your contacts. These are all examples of customer switching costs. This barrier isn’t always about money; it can also be about the time, effort, or psychological stress involved in making a change. When it’s difficult or inconvenient for customers to switch from an existing product to a new one, it gives the established company a major advantage and makes it harder for new competitors to attract customers.
Limited Access to Distribution Channels
A great product is useless if you can’t get it to your customers. Distribution channels are the paths products take to get to the market, like store shelves, online marketplaces, or delivery networks. Often, established companies have long-standing relationships that give them priority or exclusive access to the best channels. For a new business, finding a way to get its product in front of customers can feel impossible when all the prime spots are already taken. This limited access can stop a promising new venture before it even has a chance to be seen.
Intellectual Property Protections
If you invent something truly new, you can file for a patent. A patent is a legal protection from the government that gives you the exclusive right to make, use, and sell your invention for a set number of years. While this is fantastic for the inventor, it creates a powerful barrier for everyone else. It essentially grants a temporary monopoly, legally preventing any competitors from creating a similar product. Trademarks and copyrights work in a similar way, protecting brand names and creative works, making it difficult for newcomers to operate in a space dominated by protected ideas.
Government Regulations
Sometimes, the biggest hurdle for a new business is simply navigating the rules. Governments often require special licenses, permits, or certifications to operate in certain industries, like healthcare or finance. These regulations, while often in place to protect consumers, can be complex and expensive to comply with. For a new business without a legal team or deep pockets, the sheer amount of red tape can be overwhelming. It creates a barrier that can slow down or even completely block entry into a market, favoring established companies that already have systems in place to handle the requirements.
Vertical Integration
Imagine a company that not only owns the forest but also the mill that cuts the lumber and the furniture store that sells the final table. That’s vertical integration. It’s when a single company controls multiple stages of its supply chain, from raw materials to the final sale. This gives them immense control over costs and supply, but it makes it incredibly hard for a new company to compete. A new furniture maker, for example, might struggle to even buy lumber if the biggest supplier is also their biggest competitor. It creates an uneven playing field where one company owns the whole game.
Network Effects
Think about why you use a particular social media app. It’s probably because your friends are on it. The more people who use the service, the more valuable it becomes for everyone. This is called a network effect. It’s a powerful barrier because it creates a catch-22 for new competitors. A new social media platform might be fantastic, but it’s hard to convince people to join if there’s no one there to connect with. This dynamic makes it extremely difficult for new networks to gain the critical mass of users needed to become a viable alternative to the established leaders.
Q: Have you ever experienced not knowing what to do next?
A: Her Response: Every day. Multiple times every day. I am the type of person who tends to second guess my decisions. Especially in my role as a professor at the University, it is essential to get it right!
I have learned to overcome this by thinking through different options or maybe talking it out with someone, and getting their opinion to see what they think.
Also, being upfront with others about trying new things and being honest about not knowing if something will work, but still be willing to try.
When trying this method with my students, they respond positively to it. They tend to appreciate that I am willing to admit that I don’t exactly know what I am doing and still incorporate their feedback on improving. There is something about transparency that people are prone to.
Internal Hurdles That Can Stall a Business
Just as we face personal barriers in our careers, businesses run into their own hurdles that can stop growth right in its tracks. It’s not always about outside competition or a tough economy. Sometimes, the biggest challenges are internal. From a shaky plan to a shaky building, these issues can quietly undermine a company’s potential. Understanding these internal roadblocks is the first step toward clearing the path for success. Let’s walk through some of the most common hurdles businesses face from within and how they can impact everything from employee morale to the bottom line.
Lack of Planning and Strategy
You wouldn’t start building a house without a blueprint, and the same goes for a business. Operating without a clear plan or strategy is like trying to find your way in the dark. As business writer Grant Evans notes, “Not having a plan can lead to failure, confused employees, and bad sales.” When your team doesn’t know the end goal or how their work contributes to it, efforts become scattered and inefficient. A solid strategy provides direction and a shared purpose. It doesn’t have to be a hundred-page document, but it should outline your goals, your target audience, and the steps you’ll take to get there. This clarity helps everyone pull in the same direction.
Inefficient Processes
Think about the frustration of a slow, clunky computer—it wastes time and makes simple tasks feel like a chore. Inefficient processes do the same thing to a business. When day-to-day operations are disorganized or outdated, you lose momentum, money, and even good employees who get tired of the constant struggle. Streamlining how work gets done is crucial. This could mean using software to automate repetitive tasks or simply rethinking your workflow to cut out unnecessary steps. Smooth processes create a more productive and less stressful environment, allowing your team to focus on what truly matters: serving your customers and growing the business.
Poor Company Culture and Management
A business is only as strong as its people, and a negative work environment can be incredibly damaging. When employees feel undervalued or unsupported, their motivation and performance naturally decline. This often stems from a lack of strong leadership and clear communication. A healthy company culture is built on trust, respect, and shared goals. Great managers provide regular, helpful feedback and ensure every team member understands their role and feels connected to the company’s mission. Creating a positive atmosphere isn’t just a “nice-to-have”—it’s essential for retaining talent and achieving long-term success.
Ignoring Customer Needs and Feedback
Your customers are the lifeblood of your business, and ignoring their feedback is a fast track to failure. In fact, one study found that 14% of small businesses fail because they don’t listen to their customers. In a competitive market, people have plenty of choices. If they feel unheard or their needs aren’t being met, they will take their business elsewhere. Actively seeking out and listening to customer feedback—both good and bad—is one of the most valuable things you can do. It provides direct insight into what you’re doing right and where you can improve, helping you build loyalty and a strong reputation.
Neglecting Physical Assets
When you think about business hurdles, you might focus on strategy or marketing, but what about the building you operate in? Neglecting your physical property can lead to what economists call “high ongoing costs that are hard to get rid of.” A leaky roof, an unreliable HVAC system, or an unsafe entryway aren’t just annoyances; they are financial drains and operational liabilities. These problems don’t fix themselves and often get worse—and more expensive—over time. Maintaining your company’s physical assets is a critical investment in its stability and future. It protects your employees, your customers, and your ability to do business without unexpected and costly interruptions.
How Structural Problems Become Business Barriers
For a commercial property owner, ignoring the signs of foundation problems is like ignoring a critical warning light on your dashboard. Cracks in the walls, uneven floors, or doors that stick aren’t just cosmetic issues; they are symptoms of a deeper issue that can become a serious barrier to your business. These problems can disrupt operations, create safety hazards for employees and customers, and damage your professional image. A compromised building can make it difficult to operate, let alone grow. Addressing these issues with professional commercial foundation repair isn’t just a maintenance task—it’s a strategic business decision that removes a major obstacle to your success and ensures your physical asset remains a source of strength, not a liability.
Q: Have you ever had an issue with salary negotiation?
A: Her Response: Starting at a young age, I was completely unaware of even talking about a salary. I understood that the job came with a salary and then figured there was no discussion beyond that.
Believe it or not, I accepted my first job at the Ad Agency, not knowing how much I would make. Crazy huh? Looking back at how much I made back then… I did not make that much. I was making less than I should have.
Lucky for me! I had somewhat of a mentor. A woman older than me had taken me under her wing and helped me realize all things that I just wasn’t unaware of as a young woman. One important thing that she explained to me was never to sell yourself short when applying for a job.
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This month our team wants to take some to celebrate Women’s History Month by providing knowledge from successful women throughout different industries. These women may have experienced things in their careers that the younger generation may not know how to overcome. Check back on March 16th to see who we will feature next!
When It’s Hard to Leave: Understanding Barriers to Exit
Professor Humphreys’ experience with a “dotted line” resume touches on a bigger business concept: barriers. We often talk about barriers to getting into a field, but what about the barriers that make it hard to leave? It’s a situation more common than you’d think. Sometimes, a business can be easy to start but incredibly difficult to walk away from, whether you’re looking to sell, retire, or just move on to a new venture. This can lead to a tough spot where competition is high and profits are low, but owners feel stuck because exiting the market is just too complicated or costly. It’s a classic “rock and a hard place” scenario that can trap even the most seasoned entrepreneurs.
The Challenge of Specialized Assets
One of the biggest reasons it can be hard to leave a business is the investment in specialized assets. Think about expensive equipment that can only be used for one specific purpose. If you own a business with machinery like that, you can’t easily sell it to someone in another industry. Your pool of potential buyers shrinks dramatically. The same goes for your commercial property. If a building has been heavily modified for a specific use or, worse, has developed significant structural issues, it becomes a huge liability. Problems like a settling foundation can make a property incredibly difficult to sell, effectively trapping you. Addressing these commercial foundation problems isn’t just about maintenance; it’s about preserving the value of your biggest asset and keeping your exit options open.
How Entry and Exit Barriers Affect an Industry
The balance between how easy it is to enter an industry versus how hard it is to leave shapes the whole landscape. When it’s tough for new companies to get started, the businesses already there often face less competition and can be more profitable. But when it’s easy to get in and hard to get out, you get the opposite effect. Lots of businesses might jump in when the market is hot, but when things cool down, they can’t leave. This creates a crowded field where everyone is fighting for a smaller piece of the pie, driving down profits and making it a struggle to stay afloat, let alone thrive.
How Barriers Impact Market Competition
Barriers, whether for entry or exit, have a massive effect on market competition. When it’s difficult for new businesses to enter a market, the existing companies have more power. With fewer competitors, there’s less pressure to innovate, lower prices, or improve customer service. This means customers have fewer choices and might end up paying more for lower-quality goods or services. It creates an environment where established players can become complacent. On the flip side, a lack of exit barriers means struggling companies can leave the market, making way for healthier, more innovative businesses to succeed. It’s a delicate balance that directly impacts everyone, from the business owner to the customer.
Unique Challenges for New Entrepreneurs
Starting a new business is a dream for many, but new entrepreneurs face a unique set of hurdles right out of the gate. Beyond just having a great idea, they have to find a way to break into established markets. These challenges aren’t just about competition; they’re fundamental barriers that can stop a business before it even starts. From securing the necessary funds to building a network from scratch, the path is often steep and filled with obstacles that require more than just passion to overcome. It takes a strategic approach and a clear understanding of the specific barriers within your chosen industry.
Inability to Secure Funding
One of the most common roadblocks for any new entrepreneur is money. Some industries require a staggering amount of capital to even get started. Think about ventures that need factories, expensive research and development, or a large inventory. Without deep pockets or the ability to secure significant funding from investors or banks, these industries are virtually impossible to break into. This financial barrier naturally filters out many aspiring business owners, leaving the market to those who already have access to wealth or powerful financial connections. It’s a tough reality that a great idea isn’t always enough if you can’t fund it.
Lack of Skills and Knowledge
Sometimes, the biggest barrier isn’t money, but knowledge. Certain industries require highly specialized skills or a deep understanding of complex regulations. If you or your team lack this critical expertise, it can be a major disadvantage. This is also true when it comes to the physical assets of a business. For instance, a commercial property owner might not have the knowledge to identify the early signs of foundation problems or moisture intrusion. Ignoring these issues doesn’t make them go away; it allows them to grow into larger, more expensive problems that can threaten the stability and value of the entire business operation.
Building a Professional Network
You’ve probably heard the saying, “It’s not what you know, it’s who you know.” In many industries, this is absolutely true. Building a professional network from the ground up is a monumental task. Established businesses often have long-standing relationships with suppliers, distributors, and key clients that are incredibly difficult for a newcomer to replicate. Gaining access to these circles takes time, effort, and a lot of persistence. Without those connections, even a business with a superior product can struggle to get its foot in the door and find a path to market.
Frequently Asked Questions
What’s the simplest way to think about all these different “barriers”? At its heart, a barrier is just any obstacle that makes it harder to start, grow, or even leave a business. It could be a personal challenge, like the feeling you have to choose between family and work, or a business challenge, like trying to compete with a well-loved local brand. The key is to see them not as stop signs, but as hurdles you can create a plan to get around.
How can a problem with my building, like a crack in the wall, really become a barrier to my business? It’s easy to think of building maintenance as just another expense, but serious structural issues can become major business obstacles. An unsafe or unappealing building can drive away customers, lower employee morale, and lead to unexpected, costly shutdowns for repairs. If you ever decide to sell, these problems can make your property very difficult to move, trapping your investment. It’s a physical problem that creates a real financial barrier.
The post talks about feeling stuck. What’s a good first step if I’m facing an internal hurdle in my own business? Professor Humphreys gave some great advice on this. A simple, powerful first step is to just talk it out with someone you trust, since voicing your uncertainty can bring a lot of clarity. It’s also okay to be transparent with your team or customers, letting them know you’re trying something new and are open to feedback. People often appreciate that honesty, and it can build more trust than pretending to have all the answers.
You mentioned it can be hard to leave a business. What does that really mean for a small business owner? This idea of “barriers to exit” is really about feeling stuck. It happens when you’ve invested a lot of time and money into something that’s difficult to sell or walk away from. For example, if you have highly specialized equipment that no one else wants, or if your commercial building has significant structural problems, it can be tough to sell. You can’t easily get your investment back, which makes it hard to retire or move on to your next big idea.
With so many potential obstacles, how can I possibly prepare for all of them? You’re right, you can’t prepare for everything, and trying to would be exhausting. The goal isn’t to have a perfect plan for every single what-if scenario. Instead, it’s about awareness. Just understanding that these challenges exist, both in your career and in your business operations, puts you in a much stronger position. It helps you make smarter, more proactive decisions, like performing regular maintenance on your property or building a strong support network before you need it.
Key Takeaways
- Look inward to find your biggest hurdles: While it’s easy to focus on outside competition, internal issues like inefficient workflows or a poor company culture can be just as damaging to your growth.
- A healthy building is a healthy business: Your physical property is a critical asset, so ignoring problems like a settling foundation creates serious operational risks and financial liabilities that can undermine your success.
- Always have an exit strategy: Barriers don’t just affect how you start a business; they also determine how easily you can leave one. A building with structural problems or other specialized assets can make it very difficult to sell when the time comes.