5 common problems faced by startup founders
There are in the region of 80 thousand startups last year. That’s a large number despite this being much lower than ten years ago.
Starting a new business is both exciting and frightening. The prospects and rewards are potentially great but the risk of failure is also high. In fact many new businesses are choosing to start from home in order to reduce some of the risks.
But, there are 5 common problems faced by startups:
The first question you need to ask yourself before you start trading is what type of business you are going to operate. There are advantages and disadvantages to incorporating.
It is important to speak to a professional and get the right advice before you commit to one option or another. This will ensure the right framework is set up before you start operating and you’re protected for the future.
Unsurprisingly money is one of the biggest issues facing startups. Although many people are starting businesses at home with the internet this does not mean that no funds are needed.
The first 6 – 12 months of any business can be exceptionally tough financially. You may find that sales are sluggish to come in while the outgoings connected to establishing a business are high. This means you need spare funds in place and these are not always easy to access as a start up.
One option to reduce the funds issue is to continue working while you get the business started up. This is not always a practical option and it will certainly slow the development of your business. After all there are only so many hours in any day; you’ll need to prioritize tasks and you’ll find there simply isn’t enough time.
Even if you choose to quit your current role and dedicate all you time to your new business you may find that you have poor time management skills. This is an issue that faces most startups. It stems from a lack of understanding how much time is relevant for each activity. If you can’t manage your time effectively then your new business will suffer.
If you have a great idea then it’s easy to get carried away with launching your product or service. Unfortunately this is generally a recipe for failure. You need to create a business plan with realistic steps to getting your business launched and small, achievable targets.
This will allow you to grow at the right pace and evaluate the needs of your business regularly; helping you to succeed.
Finally a product or service cannot sell itself, no matter how good it is. Social media has become a powerful marketing force but you cannot rely on it to do all the work for you.
It’s essential to have a marketing plan that will ensure you have identified your target customer and brought your product to their attention. Without this how will they know they want and need your product or service?