Millions of startup ventures launch every year. It is not that every startup achieves significant success immediately after its launch. The majority experience startup problems while others are found to simply wind up within a year or so. There are challenges everywhere. Startups are not an exception to such challenges which only seems to be increasing with time.
Top 6 challenges faced by startups
- Unrealistic expectations: With success come expectations. At times, it might appear realistic. However, the truth is, it is merely unrealistic. The same applies for young startups. Establishing unrealistic expectations especially after following success is where challenges are faced. Expectations are there to stay while success is temporary. Sustainability is crucial and requires consistent efforts. To achieve sure success, controlled expectations is desired considering the available resources, market factors and growth potential.
- Fierce competition: Competition always exists between giants. Startup problems only tend to get manifolds with fierce competition. It gets only tougher if you have started an online business. You need to eliminate even small margin of error and be on your toes. B2C and B2B organizations are more prone to intense competition. Hence, you need to be aggressive and gain recognition while expanding your business.
- Partnership decision making: It is crucial to achieving success and the same applies for startups. Getting trustworthy partners is indeed the toughest job for startups. It is indeed one of the major challenges faced today. Stakes in partnership in Tech startups are quite higher. Partnering with others is beneficial for startups. However, it will be essential to consider different factors before getting into partnership. It will be wise to partner with organizations having solid market presence and industry reputation.
- Employing suitable candidates: It is also among the top challenges faced by startups. The team’s synergy is one crucial factor that defines the startup company’s organizational culture. The team comprises of people exhibiting identical focus and similar abilities. Hence, suitable candidates will be desired to ensure creating successful team culture. But this can be a tricky task.
- Cyber Security: This is age the age of modern technology and Artificial Intelligence. With scams, hacks and online security threats increasing with each passing day, small startups are required to be super cautious. You need to safeguard your sensitive data from both internal and external threats. It includes bank account information, employee records, customer details, etc. Scrupulous people are likely to take full advantage of prevailing loopholes in your systems. With people going online for just about everything, be it personal or official during these pandemic days, online crime seems to be increasing. Active online startups are faced with online threats even from scrupulous companies and foreign government agencies. Hence, you need to install military-grade, robust systems in proper place. VPN (Virtual Private Network) can help protect sensitive data by providing data security and encryption. Thus, you can restrict all unwanted people from accessing unauthorized data through the web.
Also Read: 5 Effective Employee Retention Strategies
- Financial management: It is important to manage available money wisely. Although income might increase, there is likely to be subsequent increase in expenditures. Small startups tend to relay more on financial backups provided by investors. Not able to manage properly your finances will only mean, your business will succumb to pressure. To avoid such situation, it is important to take a cautious and safe approach. Keep a tab on income and expenditures. If you find it tough to manage yourself, then you can always hire a professional financial consultancy to do the job. They will show you where your money invested and earned is going.
The above are the challenges faced by startups that you need to be aware of.