Let’s face it, this is the age when startups are exploding everywhere like never before. The sheer enthusiasm being brought up by motivated entrepreneurs is certainly a force to reckon with. Startup challenges can be tough on those with the thickest of skins. If you’re thinking of launching a startup, or are already deep in the startup process, you’ve likely come across one or more of these common startup problems.

Millions of startups launch almost every year. Where there is a problem, there is a startup solution.

Lack Of Finances

Cash flow is essential for startups to survive. One of the key challenges that small businesses face today relates to finances. As income increases, the expenditures also increase, and to top it all, startups rely heavily on investors who provide them strong financial support. When such situations arrive, startups are the first ones who lose on properly managing their finances and eventually succumb to the pressure.

Invoice factoring is another way of speeding up the account receivable processes in startups. In this digital age when invoice payments are made through mobile phones, there is no harm to request immediate payments from clients. It is also very important to secure credit before any business needs it as they can easily find out how much cash they will likely need to survive. Finally, using accounting software to keep a tab on money coming in and out of the business is also a good idea.

Increasing Competition

Competition has only increased as the web connects people on a greater scale than ever before. New businesses face many challenges in their industries, with well-established counterparts already commanding a large number of customers and sporting a reputation for excellence. Some business owners get overwhelmed by this challenge, but instead of viewing it as a bad thing, see it as an opportunity for growth. Studying the competition can offer incredible insight into the market and your future customers.

Finding your team

As a start-up, you need people to run the show with you but it is often difficult to afford them. You need those who can wear multiple hats and are able to work independently.

As a start-up, you need people to run the show with you but it is often difficult to afford them. You need those who can wear multiple hats and are able to work independently.

However, these people are often the best in class in their industries and most likely wouldn’t want to take a pay cut or risk their career path.

Tap into your network of family and friends to identify talents who are open to change and adventure. Giving employees ownership of the company through Employee Stock Options also helps to attract talent.

Lack of Proper Planning

With proper planning, a lot of startup challenges can be avoided. Not only that, but it is also crucial that you cover all your bases.

Some important areas such as sales, staffing, development, funding, etc. should be a part of your initial business plan.

And there should be scope for contingencies if events take an unexpected turn.

Optimism is great, but it doesn’t secure you in times of unpleasant surprises. The key is to get the details right, no matter how small.

Unrealistic Expectations

Success does not come alone. It brings expectations with it. Most of the time, these expectations seem realistic, but in the real sense of the word, are merely unrealistic. This same concept holds true for young startups.

Startups tend to face challenges when they set ‘unrealistic expectations’ following a booming success. Remember, success is short-lived and expectations never end. This is where startups need to translate what the real expectations are? Sustainability is the name of the game. And sustainability requires consistent efforts.

In order to succeed in a competitive business world, startups need to have high but controlled expectations, keeping view of the resources available, the extent of growth potential, and other market factors as well.

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