Are you planning to venture into business after your graduation or are you already in one? If you are, then it is necessary to look at the other side of the coin – the challenges. Yes, it is true you have big dreams to succeed in business.
However, having balanced view of reality will help you to navigate the murky business waters. Why I am emphasizing this point? The reason is that almost half of all small business startups never live to celebrate their 5th birthday. Moreover, those in the tech niche have a slimmer survival chance of only 10 percent.
Therefore, it is critical to inform yourself about the challenges that face all small business startups. Before ordering our custom papers, our business consultants will delve into the top teething problems that could make your small and fledgling business fail. Also, we will show you how to overcome these challenges to increase the chances of your business surviving into greatness.
Even with all the many lenders we have around, getting sufficient funding at an affordable rate is still a challenge to many small starting businesses. This applies to the developing and developed world. For instance, getting a bank loan is harder today than it was before the 2008 financial crash. Even with crowdfunding and angel financing, small businesses still face funding difficulties.
So, how can you overcome this challenge? To surmount it, you have to develop an idea that will convince the new lenders that you deserve their money. If you have some property or a family member who is ready to let you take a loan on it, then you can talk to them about it. Also, you could still get a loan from your friends or family members if the lending institutions prove difficult.
However, you should never give up if you fail to secure a loan at this stage and think your idea is not worthwhile. If you can remember what happened to Ring, then never give up. In 2013, a young man was desperate for financing and approached the famous “Shark Tank” for funding. He had a tech-savvy idea about home door security solutions. Moreover, he spent $10,000 preparing for a pitch that received a cold, outright rejection.
According to its founder and CEO Jamie Siminoff, he felt like everything had crushed and he was staring at bankruptcy. He says that the “Sharks” did not just deny him the money, but also cast a cloud of doubt regarding his idea’s viability.
But early 2018, Amazon, the world’s largest online store, bought the same company the “Sharks” rejected five years ago for $1 billion. If you face funding challenges or rejections from lenders, it does not mean your ideas are not feasible. Right now the “Sharks” are fuming with envy and regret for rejecting a viable and brilliant idea. In fact, what Amazon offered the young investor in the deal is more than the net worth of all the “sharks” combined except Cuban!
The second challenge facing many small startups is the lack of innovation. The reason is that most of them approach the market armed with the “rules of the book” from the so-called gurus. While it is not wrong to learn from industry predecessors, it is suicidal to bind yourself with the chains of what others have achieved.
As a young entrepreneur, you are not under any legal or moral obligation to run your business as per other people’s ideas or achievements. Instead, run your new business based on the vision (futuristic) you have for it, and not your mentors’ achievements (history). After understanding the “ropes of the game”, just chart your own path and offer a new lease of life to your industry.
Hiring Quality Talent
The third challenge facing modern startups is the lack of ability to select suitable talent. The problem here is not the lack of talent, but the selection of who best fits into your business’s vision. This bottleneck can cost your young business because hiring takes time and money. Moreover, the talent you hire for your starting business will grossly affect its progress because they will implement your vision. Therefore, be careful to differentiate between getting the best and right/suitable talent for your startup.
Poor marketing also pulls down many upcoming businesses. Moreover, this can happen even with the availability of enough working capital and skilled workers. Therefore, a have feasible and appropriate marketing plan for your business. Otherwise, you could end up with a great idea that will benefit nobody. Your plan should detail how you will handle competition, establish yourself in the market, and your pricing.
In this tech-savvy age, cybercrime discriminates against no business. This means that your young business can get attacked at anytime and you lose your sensitive details. Therefore, it is needful to have a cyber security plan for your business. Even though it is not compulsory to hire an IT specialist at this stage, you should have a plan B to avoid costly disruptions.
Time is another challenge facing many starting businesses. Most small business startup owners have challenges maximizing their time. For instance, they try doing too much simultaneously instead of focusing on a few things they can do perfectly. Therefore, set proper priorities and utilize proper planning tools and techniques to optimize your time.
Winning Customer Trust
A business without loyal customers is like a kingdom without a king because the customer is the king of any business. But still, many young enterprises have difficulties attracting and retaining loyal customers. It is therefore important to invest in proper customer acquisition and retention strategies to keep afloat. Otherwise, what is the need of being in business if you have no one to sell to?
You are now abreast with the challenges that face small business startups and their solutions. The ball is in your court to position yourself to overcome them in your own business.