Why starting a business can lead to financial difficulties — businessman Anatoly Juan

Starting a business is considerably easier than getting it up and running and ensuring sustainable growth. This was stated on 13 November by entrepreneur and business mentor Anatoly Juan, speaking at the ‘Franchise 2026’ forum in Bishkek.

According to him, budding entrepreneurs often focus on launching a company without paying sufficient attention to management, marketing, recruitment and financial planning.

“Opening the doors to a business is the foundation. You cannot survive on that alone,” noted Juan.

He explained that over 38 years of entrepreneurial activity, he had gone through dozens of failed projects. He said he had around 30–40 companies and businesses behind him that he had had to close down or lose. At one point, his personal debts reached a peak of 500,000 euros. Currently, his companies’ total debt stands at around $8 million.

Juan believes that one of the most common mistakes entrepreneurs make is trying to launch several projects quickly without having properly grasped how to manage their first business.

“If you already have a business, don’t rush straight into a new one. Learn how to produce more and sell more from your existing business,” he advised the forum participants.

The entrepreneur also highlighted the advantages of franchising. According to him, a franchisee gains access to the company’s accumulated experience, ready-made technologies, and guidelines on staff recruitment, marketing and process organisation.

Juan believes that for an inexperienced entrepreneur, buying a tried-and-tested franchise can significantly reduce the risks. He also pointed out that paying royalties may prove more cost-effective than setting up a business from scratch, which carries a high risk of financial loss.

“Paying a 5 per cent or 10 per cent royalty is far more profitable than losing 100 per cent of your money,” he said.