5 Challenges Faced By Start-Ups
The lure of the start-up is enticing and ultimate.Consultancies like NetSuite would tell you that these days almost everyone wants to be their own boss.They want to become highly successful start-ups with a lot of money, power, and fame. Yet, contrary to the widely-held belief, being a start-up is not an easy task. In fact, Darwin's’ survival of the fittesttheory is the most appropriate definition of start-ups. As per statistic, around5o millionstart-ups enter the fray each year, which means more than 130,000 everyday!
But, barely less than half of these start-ups survive and are forced to close down. Only a few become successful.
The world of start-ups has changed fundamentally. It offers unique challenges that must be faced and overcome in order to survive.
The following article will discuss a few challenges that start-ups are facing these days in order to provide a brief idea to the reader.
1. Cutthroat Competition
The corporate world has never been easy. It has offered completion at every level. When a new start-up enters the market, it immediately faces a myriad of competitions.
This competition gets more though if your start-up is an online entity.
The competing is so fierce that the start-ups never gets a chance to rest or take a breather. Moreover, there are no chances of mistakes or errors.
In order to survive in this world, the start-up – whether a traditional one or online – needs to become aggressive.
They need to make their presence felt both to their peers and customers. This is the only way to get recognition among all the big players that have been in the marketbefore you, and deem you as a threat to their business.
While completion is a challenge to most start-ups, it is also an opportunity to give it your best shot.
2. Dealing with Rapid Changes
Technology has been changing with leaps and bounds. Things are becoming obsolete as a rate that has never been faster before.
These technology changes are very challenging for any start-up.
Technology entrepreneurs are well aware of how much pressure they must sustain when there is a new technology in town, and they need immediately upgrade in order to keep pace with their competitors.
If a start-up loses a single minute in execution, he/she may lose the opportunity offered through technology change. Someone else will grab that opportunity and encash it.
There is a saying in the start-up world that if you have an idea that can work wonders, believe that you are not the only one to get that idea. Someone else has also thought about it, and may even have started working on it.
Even if you are fast enough to beat all others in executing that idea, it still doesn’t mean that you have won the battle. The second mover will come any time with a more innovative approach, and try to beat you at your own game.
This is why it is imperative to start with the idea and keep building on it much faster than your competitors.
3. Great Expectations
The more you succeed, the higher your expectations become.
Of course, you are supposed to expect great things. But, you should also be realistic in all your expectations.
The third challenge faced by start-ups is the setting of unrealistic expectations once they taste initial success.
Success is not one’s friend, and it usually has a very short life span. Unfortunately, however, expectations have a very long life.
The challenge for the start-up is to recognize his / her potential and analyze which expectations are realistic.
The very first expectation – a realistic one – for any start-up, is sustainability. If you are able to sustain, you will be able to grow and be successful. However, if the very sustainability of the business is jeopardized, the rest of the expectations will become meaningless.
The challenge is to have high expectation yet controlled one with a clear stock of the available resources, and the mechanics of the market you are operating in.
4. Hiring the Best People
This is another one of the challenges that every start-up must face and solve.
Even if your start-up team consists of only two people, there needs to complete synergy between the two of you in order for the business to work in an efficient manner.
The challengeis to build a team whose every individual is focused on the same goal. This means that a start-up needs to hire the best candidates when and where the need arises.
There are many people who can be hired and taken on board. However, selecting a candidate that is fit for the job is very difficult. At the time of hiring, the start-up must assess the level of skills offered by the individual as well as the personal integrity, honesty, and ethics of the person.
It is obvious that you can teach a new skill to just about everyone, but integrity and honesty cannot be taught.
Look for these qualities in an individual, and build a hardworking and trustworthy team.
5. Managing Business Finances
Income and expenses are highly proportional. When one increases, the other one is bound to increase too. This means that one of the most pressing challenges faced by start-ups is to manage their finances.
Start-ups usually rely ontheirfinances on investors. When they inject cash, the start-up is simply unable to manage it.
The first thing a start-up should do when faced with this challenge is to hire an experiencedaccountant. Such a person will not only keep records of all income and expensesbut also provide a true monetary picture to the start-up.
It is a great challenge for every start-up to manage its cash flows, books of accounts, and finances, in order to run its operations on a daily basis without monetary hindrances. This challenge could be solved by keeping an eye on your inflows and outflows and curbing unnecessary business expenses.
The Final Word
The world of start-ups is a strange one.
Every day thousands of people enter it, but only a few are able to survive.
Most of the newcomers enter this world with a lot of expectations only to be overwhelmed by the numerous challenges that they hadn’t anticipated.
However, once you have overcome all these challenges, you can claim the rewards that a successful start-up offers.
A start-up would begin with an initial idea. When it is executed properly, it can do wonders. The trick is to know the challenges you will be facing and take care of them as they are pop-up.
The article above has discussed a few common challenges; however, in your line of business, you will be facing some novel challenges. Don’t be afraid of them. Meet them head-on, solve them, and march your way towards success.
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