10 Challenges to Finding a Startup; Ways to Mitigate Them
The idea of starting our own startup looks alluring but how many of us are actually aware of the side-effects or challenges associated with them? How many of us dream of having our own office, hiring our own team and want to convert our dreams into tangible reality? It feels like digging a goldmine and striking it rich.
It’s true when we say that a rose’s rarest essence lives in a thorn. One has to see the big picture in order to be a champion. Working hard and thriving upon challenge is what, is actually required. It is better to rejoice that thorns have roses, than complaining that roses have thorns.
Here are 10 challenges you will face in your startup and how you can mitigate them:
1. Discovering your squad
Finding the right set of people who will run the show and have the capability to afford them at the right time is a daunting task. Determining the traces of lead from outside your network of family and friends becomes a major challenge.
2. Flow of money
It is not sufficient to know the profit and loss statements of the company. It cannot even predict for how long the business will survive. It is important to understand what payments have to be taken, what payments have to be given and the net worth/position of the company in order to plan ahead.
3. Coping with rivals
It feels like a kid who wants to go to the moon while dealing with competitors. It gives a similar feeling as if someone comes along to tell you that the thing you have wanted is at top of the cliff. It can be very retraining if you compare yourself with companies who have been around for years. A quick remedy to this is to simply focus on your task and let the audience decide which one to choose. It is also important to comply with the regulatory requirements and applicable laws.
4. Knowing the real you
You will often find people coming up with all sorts of suggestions to run your business in a particular way. It is important to have a mission, vision, goal, and objective for the organization, to have your own identity and adjust according to a particular business model that can be the best fit for your company. It is better to be informed and strict in posing your identity rather than getting swayed by investors and partners in their “lucrative” schemes. This firmness can be achieved by having an extensive market research and by experimenting with different business models to identify which path will be best suitable for your startup.
5. Delegating responsibilities
As the organization grows, it becomes essential to increase the task force and assigning them appropriate responsibilities. But funding such matters often poses an issue. Often, there can be disagreements and differences of opinion amongst co-founders and co-workers, which must be dealt out tactfully.
There has to be a good cop and a bad cop to manage various types of people within the organization. A payoff and punishment system can be created to monitor the activities of the employees and restrain them from indulging in malpractices.
6. Averting risk
Someone has to indulge in risky behavior in order to reap rich rewards. Risks go parallel to success. According to Peter Drucker, “Whenever you see a successful business, someone once made a courageous decision.” A business has to stand firm in times of challenge and controversy. That is when it will be checked for its consistency and performance.
Accidents can occur in the meanwhile. Things can be redesigned and losses and thefts can be covered, but it is important to have a parallel plan. Collecting customers’ data from day 1, via newsletters, subscriptions and sign-ups will not only save you from such incidental losses but will also save a lot of time and cost to the organization.
7. Being sustainable
Factors like currency, economy, a sudden increase in prices, dip in sales, dwindling taxes, investment scenario in regional and international markets, must be considered prior to any important decision that costs a substantial amount. It is also important to ensure that any small or big investment that is made, adds value to the organization. Selecting the right business model that adds value to the business without relying on branding, products, and risks of others is important if you wish to have profits in the long term.
8. Keep culture in mind
A true leader has to plan his growth within the organization. His working model will define the culture of the organization. Constant learning must be made a part of the process and this becomes a great retention tool which will eventually allow you to assume greater responsibilities and roles in the process.
9. Estimation of capabilities
Newly formed owners tend to overestimate their capabilities. Accepting the fact that you cannot do everything and treat this time as a learning process will help in steady progress. Meanwhile, it is important for a leader to learn that they are a bigger entity. They must learn to give, trust and assume without doubt that employees will pull all their efforts and do things the right way. Being the center-point, one needs to be disciplined, honest, commander and perform every task in the best way at all times.
10. Socializing and marketing
One needs to estimate the right budget and execute the plan in the right way so that it is beneficial for the progress of the company. Although marketing will be expensive, delegating tasks will help you focus on more important ones. The target market needs a persuasion until they are convinced about your products and services.
There is an adage saying, “Chase the vision, not the money; the money will end up following you”. Every business is marked by its own set of highs and lows and there can be a twist on every turn. The lows can be really low and the highs can be really high, making you tangle like vines. It is the moment you need to keep yourself focused, keep your stomach tight and prepare yourself for a roller coaster ride.
Being compelling, fresh, credible and innovative is a tall order. Ideas bring us together. Developers at Konstant work together to make them reality. Concerned about uplifting your startup? Konstant has expert mobile app developers who are experienced in startup app development services. These nerdies are going to save you a lot a effort and bring new perspective for your audience.