It has been said and proven than 9 out of 10 startups are doomed to fail. Harsh and cold as it is, but a dose of reality like this gives us all the more reason to try harder. Starting a business is like a walk in a park—Jurassic Park. You’re already lucky if you survive the first few months. And if you do, expect that it will just keep on getting difficult as you further on this journey of being a startupreneur.
What are the typical problems faced by startup businesses, and how do you spare yourself from joining the 90% of the statistics?
1. Unstable Stream of Cash
This is one of the most crucial elements needed when starting out a business. You need an ample amount of money to make your first step and continue moving forward. The funny thing about it is that in order to make money, you have to spend money to begin with. This is what loans and grants are here for—to help startupreneurs fund their business models and turn their ideas into reality.
2. Poorly Designed Marketing Strategy
Marketing is just as important as the product or service. Actually, it may even be more significant. Failing to to take your product across your target market is a waste of all the time, money and effort to start your business. Do it wrong, or worse, don’t do it at all, and you’ll soon be closing down your hard earned startup business.
Read as much as you can to learn the ropes of traditional and digital marketing. There are marketing consultants available out there to help you as well if you don’t really know where to start.
3. Doing Everything Alone
Starting out a new business is all exhilarating—new environment, new challenges, and new opportunities await. As these can all be used as a motivating force to strive in the business, it can also often cause an owner to mismanage his or her business. This is one of the most common problems of startup entrepreneurs. They try to run their businesses as a one-man team, thinking that it is more cost-efficient and that they can secure their businesses better this way.
Remember, no matter how small your business is, it’s good to get some hands to help you out. Don’t be afraid to share your responsibilities to others.
4. Lack of Time Management
Startup businesses are like babies. The first months are the most fragile times of it. Extreme care and attention must be given to it. You’re going to have to spend a few extra hours to make sure everything is going smoothly. It’s also about learning what needs to be prioritised amidst all the things that should be taken care of.
Check out the previous article that we wrote if you want to gain some smart time management tips!
5. Drowning in the Sea of Competition
Competitors can be those who have been in the business for years now or those who like you who are still starting fresh . This is going to be a bloody battlefield where only the wisest entrepreneurs will survive. You have to be able to develop and execute smart tactics in order to stand out. Again, this comes back into crafting a winning marketing strategy.
6. Lack of guidance
Every entrepreneur, no matter how successful they are should have at least one mentor who they can trust and consult with. Mentors—they’ve been there, done it, and have seen it. It’s a great idea to confide with someone who has done the business before or has a better understanding of how things work.
Being able to run a business successfully is wildly fulfilling. While it can be very complicated, knowing the challenges ahead and bringing with you some tips and tricks to avoid them can help you prepare from encountering these unnecessary issues. Take note of these items and be the confident self-starter that you should be!
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