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.
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".
Twitter: https://twitter.com/alextmwilliams1
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