Challenges you face in a Startup Business and ways to overcome that
Challenges you face in a Business Startup and ways to overcome that
Startups are small or medium companies of recent origin, related to the world of technology, and are confined in time. Entrepreneurs create startups from an innovative business idea and then partner with one or more investors to turn this small idea into a profitable enterprise. The concept of a company “startup” is common in the business world. What are startups and how do they work? A startup or a new business that has just started out is considered a start-up or a startup stage. Let us analyze some startups.
“In order for this start-up culture to spread across the country, January 16 has been designated as National Startup Day.”
“Today India is swiftly approaching the century of the unicorns,” Modi added, noting that 42 firms became unicorns last year. The golden period of Indian entrepreneurship, in my opinion, is about to begin.” India currently has roughly 82 unicorns (any startup that reaches the valuation of $1 billion).
The startups, categorised under six groups, gave presentations to the Prime Minister on six themes — ‘growing from roots, ‘nudging the DNA’, ‘from local to global, ‘technology of future’, ‘building champions in manufacturing’ and ‘sustainable development. The number of people launching their own businesses is on the rise. Entrepreneurship is a new trend that is gaining popularity. Today, there are 150 million startups in the world and 50 million are launched each year. Approximately 137,000 startups are launched every day. These are staggering numbers. Entrepreneurs can come up with good ideas to solve global problems more efficiently. Startups are new initiatives in the ecosystem of innovation and entrepreneurship. They represent a possible solution to the expansion of the global financial crisis that seems unstoppable in many countries.
What does remain to be seen is how many startups tend to survive the violent waves of change that have revolutionized the very nature of today’s startups?
There is a major paradigm shift taking place. As a result, startups are being challenged on many levels. The myriad challenges we face today, and in particular the challenges that startups face, are everywhere.
Challenges faced by Startups and how to overcome them.
CHALLENGE: There is always competition between the giants in the corporate world. Competition can be a major barrier to startup businesses’ survival. And the competition gets even tougher when you have an online business startup.
Because there is no margin for error, the competitive environment keeps companies on their toes. Both B2B and B2C businesses are always feeling the heat of strong competition. To survive in this competitive business environment, which includes both traditional and internet enterprises, entrepreneurs must play aggressively and punch above their weight in order to obtain much-needed exposure amongst the clusters of constantly challenged and increasing businesses.
ACTION: know your customer: Most marketers are aware of their consumers’ purchase habits, which is beneficial to track. But there’s still a lot more data you can use to perfect your marketing strategies. Knowing your consumers allows you to develop a relationship with them and extend the customer lifetime beyond a handful of purchases.
Understand the Competition: To understand your competition, it is most important to begin by examining the marketplace. First, take a hard look at the things your competitor does. Does that company have intimate conversations with customers that lead to conversions? Do they have a unique angle to tell their story? Second, look to see what your competitor doesn’t do, and then try to fill in that part of the market.
Control and manage both existing and new markets: When you have one market locked down, feel free to expand to new markets. Test the waters with other age groups: would your product make sense for teenagers or elderly women? New markets can lead to faster and better growth, but be sure your company is ready for a new market first. New markets are exciting to enter, and when your company is ready, they can result in a large payoff. Don’t forget about the customers who are already loyal to your company. Maintain some current aspects of your marketing when diversifying your market options to keep performing well with your existing customers.
Knowledge and skills gap:
CHALLENGE: It’s unlikely that you’ll know everything there is to know about running a business as a first-time entrepreneur. A lack of understanding can lead to costly blunders that could have been avoided. You’ll also have to deal with a lot of demands on your time and energy when starting a business.
ACTION: Assimilate as much information as possible, particularly about the industry you’re entering, the customers you’re aiming for, and the competitors you’ll face. You should also educate yourself in critical areas such as finance, marketing, and sales by reading business advice websites, attending events, joining business groups, and seeking mentors.
It takes a lot of effort to build a business, so you must be motivated and energetic. Being self-assured is a plus.
CHALLENGE: Poor financial planning is one of the leading causes of startup failure. Your business will fail if your costs exceed your revenue.
ACTION: You must understand all of the costs associated with your startup and ensure that your products or services are priced appropriately in order to make a profit. Make a cash flow forecast that predicts both your sales and your profit and loss. You can then forecast how much money is coming in and going out of your business.
Failure to plan:
CHALLENGE: The excitement of a new business idea can make it tempting to launch without much forethought. However, a lack of planning can result in your business running out of cash or being unprepared for critical activities such as marketing or dealing with suppliers. Business owners who plan ahead of time and set goals for themselves are more likely to succeed.
ACTION: Develop a comprehensive business plan that addresses issues such as marketing, staffing, finance, and sales. As the business grows, review and update your plan on a regular basis.
CHALLENGE: Success does not happen by itself. It brings with it expectations. Most of the time, these expectations appear realistic, but in reality, they are merely unrealistic. The same holds true for new businesses.
Startups often face difficulties when they have ‘unrealistic expectations’ after a period of rapid success. Remember that success is fleeting and that expectations never cease. This is the point at which startups must translate what the true expectations are. The keyword here is sustainability. And long-term success necessitates consistent effort.
To succeed in a competitive business world, startups must have high but controlled expectations while keeping in mind the available resources, the depth of potential growth, and other market factors.
ACTION: Finally, one of the most common unrealistic expectations for a business owner isn’t necessarily “My business will make me a millionaire.” Although there are a few people who believe they can accomplish far more than they can with their business, it is far more likely that you will tell yourself that you will fail whenever something minor goes wrong.
Instead, you must be willing to accept each up and down in your business and roll with the punches. Accept your failures, learn from them, and remind yourself that there is always room for improvement and development. Maintain a positive attitude, but be prepared for anything. That way, you’ll be prepared to face the upheavals of the startup world.
An ineffective marketing campaign:
CHALLENGE: There is a risk of getting caught up in the current marketing fads that can result in you spending more on marketing strategies than the sales they produce.
ACTION: Effective marketing is essential. Make a marketing strategy for how you want to reach out to your customers. Because most start-ups have limited resources, research several marketing strategies. Are there any low-cost or even free ways to reach out to your target market?
If you have marketing budgets, spend them wisely on the most effective strategies. Measure what you do in terms of marketing and make adjustments as needed. If you don’t have the time or abilities to handle it yourself, consider outsourcing your marketing to a professional.
Making the right hires:
CHALLENGE: The workers you hire can make or break your startup’s success. A bad employee can have a significant impact on team morale and productivity. It’s difficult to fire someone, but having the wrong people in your startup can cause a lot of problems.
ACTION: Your first hire is critical, so take your time in finding the appropriate person. Look for people who have important experiences and share your beliefs. Create an open and honest business culture once you’ve assembled a team. Encourage your employees to communicate openly and honestly so that you can learn about their strengths and limitations. This may also assist you in dealing with any employee difficulties that may develop.
These are some of the challenges that one may experience when beginning a new business. To solve such challenges, you would require experienced assistance. As a result, you can contact us to learn more about startups and how to cope with challenges that may arise while launching your business.
Post by Mansi Sawant
Mansi Sawant seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of IndiaFilings which provides taxation and Licensing. Writing from observations and researching makes her articles virtuous.