Overcoming Startup Challenges
2020-06-17
Launching a startup company can be an exciting endeavor for entrepreneurs to make their business dreams a reality. In recent years, an increase in access to funding, tech-driven innovation, and educational courses allowed virtually anyone to start their own business. Now more than ever, it’s the best time to engage in the startup culture; an industry that shows no sign of slowing down and will only grow even more in the years to come.
While entrepreneurship sets the stage for continuous innovation and a competitive economy, it’s far from perfect. In fact, it is often filled with startup challenges that many startup owners failed to address, leading to some startups to die before they could even take off.
Lack of Research and Planning
One of the most common reasons why a startup company fails is they did not plan strategically. Or it could be a possibility that they have a plan in place, but they neglect to cover other aspects of the business that are just as important. Fundamental areas such as funding, recruitment, sales, product development, customer support are critical to the success of a business plan.
Aside from a great business plan, having a contingency plan in place is often recommended. Allow yourself room for surprises, as there could be setbacks or challenges along the way. Anticipate all possible outcomes. Consider all key areas of your business, prepare a business plan, and write down all the details for your business plan.
No Business Know-how
Anybody can create their own startup. However, this could also mean that people with no business acumen may not know the limitations of their projects. Whether it’s managing a project from a business perspective or using the right team to execute the plan, it’s vital to delegate the power to people with in-depth business expertise and experience when it comes to building a startup company.
Finding Reliable Partners
Working with trustworthy partners is critical to success in business. And not choosing one early on is one of the reasons why most startup challenges occur. This is especially true if you’re in the tech industry. In this digital age where businesses are at the mercy of evolving consumer demands and technological trends, finding the right partner is essential for any startup’s survival.
Choosing to go through a partnership can give startups great leverage. However, they need to consider all angles before collaborating with prospective partners within the ecosystem. To maximize the benefits from a partnership, startups should work with organizations with a solid market presence and credible reputation within their industry.
Overlooking Sales and Marketing
While marketing expenses can make a huge dent in the startup budget, it is a necessary spend. You can’t depend on word-of-mouth alone for customers to find you. When you neglect or not execute your marketing strategy well, you may not hit your ROI (return on investment) for this expense.
To be successful at promoting your product or service, your marketing strategies need to be data driven. Know your sales funnel and adjust it when needed. If possible, you can delegate this task to others with more expertise and industry knowledge.
Recruitment
A small startup may find that most of their precious time is spent on the recruitment process. Understanding the exact skills and qualifications you need, and having the right people on board, is essential to a startup’s survival and growth.
As the company grows, they might find themselves with a different set of startup challenges such as finding out that you hired people for the wrong role or placing the right people in the wrong role. This is the reason why you need to design your recruitment strategy before you even start. Make sure to align these key roles with the business goals you’d like to achieve.