Analysis Of The Challenges Of Startup Companies

Startup Company means an emerging company started by an entrepreneur still in its initial stage of operation to attempt to capitalize on developing a product or service in Market.

Challenges of Startups

Financial challenges: (Money begets money)

Finance is a very important part of the startup process. It is a fact that small startups depend on investors, donors and a bank loan so startups tend to find it really hard to properly manage their finances and the bog down against the pressure.

To solve this kind of situation, startups need to play a safe hand to avoid this issue. So startup should sure with their personal savings to kick start the business. But a dwindling cash flow and no clear plan for funding can stop operations and process of startup quickly.

For example: Sydney is considered the largest Australian startup hub, and startups there have a chance to use financial services to their advantage and to increase their company’s growth in the long term. This is a clear example of a country that encourages startup.

Human resources and Hiring Suitable Candidates

Startups start with one founder or some founders. As time goes by founder needs more experts to develop the company, make team and finally hire. Hiring right employees that fit in your culture is very important to achieved company goals. Choosing a right and talent team is beneficial for two reasons: first, experienced and productive individuals help you to achieve successful secondly, they collaborate with each other, share responsibilities, and solve problems. There is a huge number of aspiring individuals available. Selecting a suitable candidate that fits the job well enough is considered a tricky task. It is one of the biggest challenges facing the startup so organizations in general and startups in particular need to hire suitable and talent candidates.

Support mechanisms and Partnership

Due to the lack of funds there are a number of support mechanisms that play an important part in startups. It includes investors, science and technology tools, accelerators, small business development centers, venture capitals. Lack of access to such support mechanisms increases the risk of failure of startup. Partnership is the essence of success. Going into a partnership pays great dividends for the startups startup businesses should look for organizations that enjoy a sound presence within the market and a good reputation amongst the industry giants.

Environmental elements

A lot of startups fail due to lack and shortage of attention to environmental elements, such as the existing trends, limitations in the markets, legal and economic issues. While a supportive environment facilitates the success of startups, as we mentioned Sydney.

Fierce Competition

Talking to competitors can sometimes be helpful. Since want to know your competition, don’t be afraid to reach out to other business owners in your industry. Always Startup culture takes a competitive way, but it's highly important to collaborate. Startup has to build a strong support network to learn from each other and share lessons learned for positive growth.

Winning Trust of Customers

Customer is the king and they are the real force behind a startup’s success. To win and gain customers trust and loyalty, startups need to work aggressively to implement a customer-centric working policy so to enable them to succeed in their pursuit of attaining the height sustainable growth and progress they desire to achieve it in business world.

Product and Its Market

This is a necessary and very important for any startup. Marketing in startup needs to be data driven to understand user behavior. Understanding tasks and outsourcing will enable you to focus on more important things. One of the biggest challenges for every business of startup is to find a market fit and create a product that will be demanded on this market. In view of this, should validate your business idea accordingly. You need to conduct a market research to understand your target inside the market, identify consumer needs, and pinpoint realistic competitors.

Protecting Business Data and Cyber Security

Employing and Business data protection is a significant challenge that startup have to overcome. And Cybersecurity is a big concern among entrepreneurs and startup because they don’t usually have that powerful systems in place as that of large organizations. Damages due to cybercrimes are increasing, while more than a third of attacks globally are aimed at small businesses (startup). So, startups need to have robust and military-grade security systems in place to f protecting a startup’s information, and employee records.

Taxation Issues

Depending on the markets that you have elected to conduct your Start Up business, Start Up must pay attention to taxation issues. Taxation is something that will make or break your company’s future. Failure to comply with taxation is a major mistake that costs many Start Up companies.

Technology

This current time is dependent on the technology tools. Technology is playing a vital and important role in the relationship of business with their customer and dealing with market. Number of things in which technology is essential for business and companies is as follows:

• Interaction of the company with their intended customer through the website or social platforms
• Facilitate customers at their doorstep through the online shopping
• Maintenance of the confidential data of the customers and provide security to customer.

Maintenance of reputation

Start-up makes a lot of efforts to make rank in the market and explore your company as a brand in the market and society. There is no doubt achieving a good reputation in the market is not easy but once achieve it so the maintenance of the reputation will be a challenge or problem for your business survival in the society.

Planning and visualizing

Planning and visualizing is an essential element of startup culture. It is surprising how lightly people take it and forget to cover important things and basics like budget, resources, and potential risks as a part of their business plan. As a result, they falter and fail. Startup companies should to try to create a detailed and visual plan and include every little thing, so that startup doesn’t come to a standstill when something goes unexpectedly.