Across the world today, there are over 50 million start-ups being launched annually. On average, this translates to over 136,500 start-ups launching daily. Many of these start-ups don’t survive the storms in the business world, however, dying before they even celebrate their fifth anniversary. I have compiled a list of some challenges that I have personally faced and some I have seen friends going through with their start-ups and how to go around them.
Competition in business is fierce. Start-ups will face competition from the existing giants who know the jungle pretty well, hurting their chances of survival significantly. It is just as challenging when a start-up business is online and trying to earn trust from people who are highly cautious of companies that they have not heard about. However, being in a competitive environment always keeps the start-up on its toes, and this is very good for any business.
For us, with start-ups looking to stay afloat in our business that covers online and traditional business practices, aggressiveness is the crucial trait required. Never overlook any chance and remember the slogan ‘no business is small business.’ Do not be shy to knock on big doors to make your pitches. Keep sending those promotional messages even when you don’t receive feedback. This tactic has enabled us to get much-needed recognition in our clusters in the ever-expanding business world.
Most new entrepreneurs get into business with very unrealistic expectations. I have seen raw businesspeople compare their start-ups with multinationals that have been in business for ages. Established companies have gone through their struggling phase and passed the tests of time. It is important to accept when you are not there yet.
For start-ups to succeed in the competitive world of business, high expectations are reasonable. However, they need to be realistic and controlled. I value the need to consider available resources, the growth potential of the business, and other factors in the market that will enable any start-up to sustain itself.
This is the most critical factor when it comes to defining your organizational culture in a start-up. Teams should comprise of individuals who can harmonize their capabilities and focus.
In the market today, there is a pool of aspiring candidates who are readily available. Choosing a suitable candidate for your team is the tricky part. Getting the right pool of employees is, in my opinion, the most challenging task a start-up deals with. I would advise that when selecting an employee, ensure that they will be aligned with your goals and those of your business.
Financial management is another major challenge faced by start-ups. Many small start-ups depend heavily on backup from investors. Most of the time, when small start-ups experience cash influxes, they strain to manage their finances prudently. Smaller businesses may benefit from the investment of money counters if they hadn’t known about it already. The key is to research and shop around the tools and resources that are available to you as businessperson.
It is also abundantly clear that at the start of a business that they may be spending more than they are making in the first few financial quarters. This is why it is essential that businesses get an overdraft system on their accounts, where places like Atlantic Union Bank can help to determine what are Business Overdraft Services and why are they useful for businesses?
To address this kind of situation in our start-ups, I always emphasize to my team the need to be very cautious with all our financial situations. We always consider taking advice from reputable financial consultancy organizations and industry professionals like Ted Xashokau.
I value proper treatment of staff, but I opine that the customer is always king in any business. They may not always be right, but how we handle them as a start-up has an effect on our growth. It’s a massive challenge for start-ups to win customers’ trust and loyalty. Customers are the wind beneath our success wings as start-ups. Their referrals and social media presence on our business pages give us an edge against traditional business practices.
For us to win our client’s loyalty and trust as a business team, we work aggressively on our customer-centric working philosophy. This, in turn, brings success in the pursuit of growth and progress in our business. A loyal and satisfied client base in start-ups helps us scale higher towards our excellence.
In the current digital age, the survival of start-ups, especially those with a robust online presence, requires them to be super vigilant. Being vigilant will help to counter any security threat occurring online. Hackers are everywhere, and they are waiting for the slightest chance to take advantage of any loophole in the systems of start-up firms.
The rate of cybercrime is very high, and it seems to increase with each passing day. Start-ups need to safeguard all critical data with military-grade security systems. Protect your important documents through encryptions and by restricting unauthorized access to the organization’s data. Have only a few trusted people accessing vital information and use online security tools to keep your data safe.
Any start-up will face teething problems, no matter how much experience or preparedness you have. However, with the right strategies and responses discussed above, you can wade through the tough times and become a success story!