If you’ve recently started a new business, then you’ll have to overcome a series of hurdles. These come in a range of sizes and shapes. Some are technical, some are cultural, and some are financial. Most new businesses find themselves wrapping up within just a decade. But if you give yourself time to prepare for the challenges you’ll face, you can keep yours going long into the future. Follow the tips below to overcome common challenges startups face.
If you’re participating in a highly-competitive market, then it pays to be aware of what your rivals are up to. Even if you’re not looking to emulate them directly. Think about where their strengths lie relative to your own and keep a close eye on the numbers. You should know where you stand in the market and have an idea of where the competition is.
A lack of liquidity can be crippling for a new business. Lacking the money to pay your staff, or having to suspend investments because you’re waiting for a major client to pay is bad. You might end up making decisions that aren’t right for you in the long term.
New businesses have several different means of bringing in outside finance. You might apply for a grant, a traditional bank loan, or even something more adventurous like peer-to-peer lending. If you’re struggling to get your invoices paid promptly. You may look into securing additional funds through invoice financing. This is a line of credit using your debtor book.
When your business is first starting out, you’ll be an unknown quantity as far as your would-be customers are concerned. This means that you’ll have to be proactive in winning their trust. Bear in mind that a poor reputation can be a difficult thing to shake at this stage. This applies especially if your customers are active on social media, where good news can spread quickly. But, bad news moves even faster.
When your business is first starting, you’ll have to wear many different hats. This means developing expertise rapidly in a whole range of fields. Including marketing, accounting, and sales. This means investing a lot of time in developing yourself personally. Also, you must bring in freelance expertise to handle rarely-performed tasks that require a specific skillset. Your success rests on judging when it’s appropriate to outsource.
If you expand rapidly, then you might structure your organization in such a way that it’s over-encumbered in the long term. This is another point in favor of a lightweight core team supplemented by a larger team of freelancers whose work can be called upon when necessary. Use the advice above to overcome the challenges startups face.