5 Most Common Challenges Startup Face and Their Solutions
A bit more than half of all startups actually survive to their fourth year, while the startup failure rate at four years is about 44 percent. - SmallBizTrends
There is a famous saying – a smooth sea never makes good sailors. Likewise, a startup is bound to come up with a set of challenges. Nearly 50 million startups are launched every year, but out of this huge number only 10 per cent survive. The numbers are large and startling. Some fail as quickly as they are launched while some make a fortune. In all the case, startups face some common challenges. Let us know what they are and how they can be addressed.
It is obvious – startups need money. Unless you are fortunate and cash is flowing straight away from investors, money is going to be an issue sooner or later. Cash issues may hit hard and can even delay crucial signs of progress.
Startups need capital for office space, product development, and run the business smoothly. Some ways to address this issue:
· Find the right investor
· Networking with other companies and business
· Angel investors
· Venture capital
Winning the trust of customers
For a new business, it is a challenge to win the trust of their target audience. In order to make a strong presence in the market, it is indispensable to create a satisfied and loyal customer base which is no walk in the park.
Some good ways to win the trust of your customers:
· Come up with customer-friendly policies
· Take help of contact center service to improve customer satisfaction
· Get regular feedback from customers
The marketplace is crowded and full of countless competitors. In addition, every day with multiple startups coming to existence, there will be new rivals posing a threat to your businesses.
No matter how great your products or services are, it’s natural to face severe competition, and it will only grow all the time.
A probable set of solutions to deal with this:
• Get into the shoes of your customers
• Find out what makes your products special?
• How is your company different?
• What makes your brand unique?
• Why should someone choose your company over your competitors?
Finding the right candidates
You need certain skills in your people not just for your business to survive but let it grow. Know the exact skills your startup requires to get the right people on board. In fact, it might be the determining factor of how well your startup strives. Delay in finding the right personnel is costly – it eats up valuable time that could be spent on other pressing areas of the business.
In addition, not having an appropriate employee can create hindrance in smooth operation of business.
How to tackle this situation?
· Stay aware of the challenges of startup recruitment
· Create a local, hiring buzz by networking
· Prepare a checklist to hire candidates
· Outline your company’s core values
· Consider employing freelancers as well
There is never enough time in the business scenario of startups. There are countless decisions to be made in a single day.
In addition, there are meetings to be arranged, clients to be called and take care of many things at the same time. Some effective ways to manage time:
· Prioritize tasks and rank them in order of their importance
· Give a deadline to indispensable tasks
· Focus time and energy on most impactful things
· Minimize distractions
No great business is built overnight. Every successful startup has to wade its way through multiple challenges before becoming world-famous brands.
Hope these tips and solutions help you to achieve the new heights of success. Keep hustling!