The Challenges That Startups Face
Despite being trendy and attractive to lots of youth who are eager to establish their own projects rather than have a normal job, Startups face a lot of various challenges:
- Lack of Money
According to research, shortage of cash caused 29% of the reasons for startup failure1.
- Uncertainty
Startups usually start with an innovative idea. A product, service, or business model, that is not present within the market. Therefore, an entrepreneur is not sure how things will turn out, there is no reference. Ideas are not fully developed.
- Inability to form the right team
Recruiting suitable members who are willing to put in time and energy into a still not yet stable project, and following uncertain figures is a real challenge for startups.
- Innovation
Finding your place in the market is a tough game. What differentiates you? Why would a customer choose you? Innovating to find a product or service has helped you start your startup, but to keep moving you need to appeal to customers, compete with market tycoons, and position yourself right. It takes targeted market campaigns, partnering with other businesses, and even teaming up with a competition at times.
- Operate on very limited resources
Most startups suffer from a lack of resources, they mostly work on a shoestring budget and operation. You need to have tolerance for this and thrive through it.
- Misallocating resources
Yes, resources are limited. And, because of their limitation, they need to be allocated properly. Many startups ignore marketing and sales, depending solely on the word of mouth. Unfortunately, this is not enough. You are a startup but you are swimming with sharks and big companies, you need to be seen and heard of.
- Neglecting Employee Well-Being
Sometimes startups fall into the trap of ignoring employees' needs and well-being amid the daily challenges. However, reducing employee turnover within a startup is as important as all other dimensions. After all, keeping and maintaining the process, and team spirit is crucial for business success, especially for those working within a startup where putting effort and energy is essential for business continuity at such a stage.
- Losing the passion
9% of startups fail due to losing passion and motivation. It is understood that facing lots of challenges daily is not easy, and may also lead to burnout. Therefore, keeping some work-life balance as you try to make it through. The last thing you want is for your dream to stop because of you. Take good care of yourself, your dream relies on you2.
Based on the above data, we can tell that maintaining a business or startup is never easy. It takes lots of patience, time, and effort.
1CB Insights 2019, Accessed 20 June 2021, https://www.cbinsights.com/research/startup-failure-reasons-top/
2Matt Hunckler, Forbes, 2017, 12 Challenges Startup Culture Must Overcome In Order To Thrive in 2017, Accessed 20 June 2021, https://www.forbes.com/sites/matthunckler/2017/03/22/12-challenges-startup-culture-must-overcome-in-order-to-thrive-in-2017/?sh=a210e0775924 Dierdre Scully, 2018, 11 Challenges Startups Face, Teamwork, Accessed 20 June 2021, https://www.teamwork.com/blog/11-challenges-startups-face/
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