6 Common Challenges Startups Face
For every new endeavor, there are challenges that one must surpass. Startups face peculiar hurdles, but the problem becomes how to surmount them. As the saying goes, "a smooth sea never makes good sailors," you wouldn't say you're a successful entrepreneur until you have conquered the obstacles in the world of startups.
In the Chinese city of Wuhan alone, thousands of startups are registered monthly, and globally, over 50 million new businesses are launched annually. These numbers keep growing by the day as the market continues to expand. The question is, how many of them can stand the test of time? Many startups collapse after the first five years when they can no longer deal with the inherent challenges.
This article takes a look at some of the challenges contemporary startups face and proffers tips on how to overcome them.
- Financial management
I should say that while raising capital may be a significant challenge for startups, fund mismanagement remains the leading cause of failed businesses. As income increases, expenditures follow suit, and so, there's a need to strike a balance between both phenomena.
Investors often invest in small businesses when they see potentials, but more often than not, these monies are mismanaged. Excellent money management is critical in growing a business and maintaining a winning streak. No law says you cannot seek assistance from a financial consultant when it comes to your finances.
Even as a business guru, you can seek help from an expert at every stage of decision making. Your business could have all the money they need to run, but without strategic financial planning, it is doomed to fail.
- Hiring qualified candidates
One of the most critical factors that shape your small business is the quality of team members. If you must go far, you should take the time to select the best hands that can synergize with your mission and vision.
Your team should comprise humble, diligent, and focused individuals who are willing to sail the turbulent sea with you. Usually, hiring the best hands is difficult because it could cost more to pay their monthly entitlements. With digitalization, things are easier than the traditional method of hiring.
With the increased popularity of remote jobs, you do not physically need people to work at the office. Your business can be a mix of remote and physical staff so that you can cut down redundancy to its bare minimum. If your employees cannot move as fast as the tide, you do not need them.
- Winning customers trust
Customers are always right. This famous saying has kept many establishments relevant for many years. All that you do in your startup should be geared towards customer satisfaction. As a beginner, winning customer's trust is a daunting task – one that requires deliberate policies.
Even businesses that are known to offer quality goods and services still have to work hard every day to gain trust because the market is competitive. Among hundreds of business goals, customer satisfaction should be at the top because it is integral in the long-term success of your startup.
It isn't easy to win trust since you are relatively new, but a customer-centric policy goes a long way in attaining an enviable height in the business world.
- Time management
There is never enough time to get things working the way you want, but a serious-minded person knows that time management is vital. While running around to set up your businesses, you would encounter distractions from both family and friends.
For some disturbance, you have control over them, and for others, you don't have a say. Eliminate or minimize frivolities that get into the way of you and your business and prioritize essential duties. Your time and energy should be focused on productive work that supports the growth of your business because the time they say, waits for no man.
Why postpone a duty if it can be done now? If you must beat your competitors and remain relevant, then you should unlearn procrastination. To save time, you should always have daily, weekly, and monthly to-do lists such that you allot time to each of the tasks and carry them out as and when due.
- Getting out of your comfort zone
Successful entrepreneurs understood the concept of comfort zones and took the bold step out of it. Entrepreneurship is not for the faint of heart. You would need to push yourself a lot more than you used to. If you are someone that shy away from new challenges, you could consider another somewhat easier career – if there is one.
Most people start as the accountant, content creator, marketer, manager, and in severe cases, cleaner. For someone who is committed to fueling a thriving business, they would do anything. The Microsofts and Apples of today left their comfort zones, but now, they can afford to relax and watch others do the job.
If you're willing to see your business succeed at all costs, why not? Get into the boat of successful thinkers and have your name written in the sands of time.
- Cybersecurity
Hackers are all over cyberspace, and they are alert looking to wreak havoc. Since we live in a digital age, you should leave nothing to chance. In the past years, many businesses have been hacked and loads of cash stolen from them.
Your business is at risk of being hacked, especially if it is a tech startup. This is one of the reasons many startups fold, and you wouldn't want to risk that. A virtual private network (VPN) secures your information from online threats and unauthorized access.
There is no magic wand you swipe that eradicates all the challenges facing your small business at the twinkle of an eye. No one prays to undergo trials, but since we know they are inevitable, we need to be on our toes. If you must make it to the top, you need to take the bull by the horn and leave no room for excuses. The beginning is always the hardest, but the efforts would pay off in the end.