5 Challenges for Startups

We live in a Startup Era. Everywhere we look, we see influencers and startup gurus talking about their successful projects and how easy it is to run a business. All these motivators can give you a completely wrong picture about entrepreneurship.
Entrepreneurs need to show an outstanding energy and commitment throughout their careers. That’s the only way to succeed outside of the corporate world. Each startup faces dozens of difficult challenges on its way to the top. Business success depends on your ability to deal with these issues and mitigate their consequences.
In order to get ready for the market jungle that’s waiting for you outside, you’ll need to read about risks and challenges that are associated with your industry. This article explains some of the most common challenges startups across all niches are facing. It will prepare you for more comprehensive reading on the subject.

1.      Finding investors

Although some businesses can be started without big upfront investments, most startups, especially in the tech niche, require lots of money to start rolling. Looking for an investor is not an easy task. Entrepreneurs need to assure rich angel investors and different funds that their idea is worthy and that it will bring money to every party involved. Before trying to find an investor, you need to work on your presentation skills and create a thorough business plan that answers all of the investor’s questions and concerns.

2.      Competition

Due to a fast technology advance, almost all industries are growing at a huge rate. Markets are very competitive, and there’s always a company that can provide the same service at a lower cost. The key to overcoming this challenge and making your business stand out is to find your unique market position and stick to it. For example, if you want to develop and sell financial software, stick to only one small niche within the accounting field, like personal finances or bookkeeping. Narrow niches come with much less competition, and by investing a lot of money and effort in your project and regularly updating your offer, your startup will be able to compete even with the biggest corporate entities.

3.      Cash flow

The amount of cash flow is critical for your business operation, especially in the first phases of your company’s development. At the beginning of your entrepreneurship career, don’t count on high salaries and bonuses because if you want to make your business successful, you’ll need to reinvest most of your profit. Only a healthy cash flow can support the fast development of your company, and according to Paul Graham, one of the leading business advisors and writers, a quick growth is the most important success factor, which defines startups at their core.

4.      Finding the right team

Although we are witnessing a widespread digitalization, startups still desperately need human capital. Many small companies don’t have enough means to hire the best talents and people with proper expertise and work experience. In the first phases of the company’s development, employers will need to hire interns and college students, which isn’t that bad considering that these candidates are much easier to train. When it comes to startups, the employees are the company’s most valuable asset only if they do their job with utmost dedication. Granting a share of the company to new employees is a great way to tie their interest with the company’s success and to attract some of the best market talents.

5.      Client acquisition and retention

Startups often have problems with attracting their first customers. Most companies focus on marketing when they need to attract new clients and keep the current ones loyal. Advanced marketing strategies are great for improving your company’s prospects, but if you want to create a loyal client base, you’ll also need to work on improving the customer service. Fortunately, today there are many efficient CS tech solutions, like remote virtual receptionist and website live chat tools, that can help you to answer your customers’ concerns on time.

Successful startups should move up the market ladder at an incredible speed. Entrepreneurs need to anticipate every business opportunity and constantly follow the new market and tech trends. Although startups should always strive towards innovation, they also need to assess each project and conduct risk management before opening new branches of their business. A fast growth sometimes brings bad consequences, and if you want to retain the high quality of your products and services, you’ll need to create a comprehensive plan for every business step you take.

Authors Bio :  
My name is Alex Williams. I am a journalism graduate, and a rookie blogger trying to find my luck. Blogs are the perfect opportunity for presenting yourself to wider audience, getting the chance to showcase my expertise and receiving recognition. I am a regular contributor at Bizzmark Blog "http://bizzmarkblog.com".

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