If there is an untold truth about startups is it the fact that it is not as easy as it seems to launch and maintain one as what successful entrepreneurs made you believed. Despite the new avenues made available right now to help startups emerge and bloom, still, there are some challenges which continue to exist. If you are an aspiring startup entrepreneur, you have to brace yourself for several roadblocks and time-tested challenges.
There are many reasons why startups fail
and warnings you should watch out for when starting your entrepreneur journey
A startup faces challenges at various stages
and different rugs up the ladder before it finally reaches the much-coveted success.
Problems may differ according to the difficulty experienced in carrying out different objectives and goals and the ability of an entrepreneur to handle these problems
as they arise is a huge benefit.
The startup entrepreneurs can make mistakes
which depend on the kind of startup or group of people who work together. But, there are several challenges that startups face on a general level these days.
Below is a quick list of the 5 most common challenges your startup may face which can go a long way in determining if your startup will fail or succeed.
This is probably the biggest issue that comes first on the list. Funding remains to be among the major challenges that an emerging startup will face. It is a somewhat dicey problem in the sense that all investors prefer to place their money somewhere they feel as the safest.
This is why they often invest their cash in already successful and established startups and not as often in startups starting from scratch
. While this may seem logical for investors, it puts limits on the number of successful startups you can find. There are several startups right now that, when given enough funds, can become big time trailblazers in the field they belong to. However, they don’t have readily available funds for the reason that investors opt to be logical by investing in the most prospective and established startups.
2. Unfeasible Goals
It is always advantageous and helpful to set your business goals. These goals give direction to your business, offer a means of measuring its growth in time, serve as a way to assess success or failure of your business and act as a method of making your business go head to head with other businesses belonging to your niche.
In running a startup, it is a must that it manages to surpass or at least meet all your set goals. This will show you that you are on the right track for your future success. But, many startups get things wrong on the point of goal setting. In many cases, upcoming startups come up with goals which are unrealistic, given their size and structure.
Also, after a huge success, there are startups that raise the bar and during the process, they create goals which stretch them too thin. In order to be consistent, you have to set high yet generally attainable and controlled objectives and goals considering your capability and level of resources of meeting these goals.
3. Lack of Innovation
What is a startup without innovation? It is sad but the desire to create startups and make more money overnight has created several norms in the minds of people today. Thus, it is no longer a surprise that majority of startups are mere knocks of old and more successful ones. Today’s entrepreneurs
are extremely lacking in terms of innovation. When clients and investors see these, they think twice in making investments as they don’t see the difference of the new startup from the old one.
A primary method to attract funds for your startup is to have at least a single unique feature which will make you stand out from the crowd. People often embrace re-imagined ways of carrying out things instead of favoring completely innovative and new methods. Its consequence is that it trumps down on innovation.
4. Personnel Selection
It doesn’t matter if you have great business management skills because sooner or later, even the smallest startup will need a team that can do the work for you. Being able to find the right members for the team can be quite challenging. You need to choose people who share the same passion with you and those who have the ability to handle all the hardships associated with the job.
The right people can help you a lot. Eventually, their skills will help you relieve some of the work. Selecting the right people is a task you have to do with utmost impartiality and care. An applicant’s character might tempt you to hire him right away only to find out that you made a big mistake and you hired an unfit person. You have to avoid all biases when you are searching for the right people for your startup.
5. Decision Making
It is a challenge often faced by businesses with several owners. Although partnerships are good as these offer a bigger capital base, such businesses are often composed of founders who have different backgrounds and varied and sometimes conflicting business orientations.
It is these different orientations which can affect the decision-making process. When you run a startup, decisions must be made fast
, particularly when you have a small window of time to act on or if the opportunity available is about to close. It is imperative to make tough decisions in the fastest way possible.