First, what is a startup? Wikipedia defines a startup or start-up as a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable economic model. The general aura around startups and entrepreneurship is dense, blurred lines associated with the negative, yet these are the changers of the mindset, economy as a whole. Google, Facebook, Microsoft and other game changing now conglomerates started in garages/basements. Nonetheless, startups face a heap of problems, the most common being lack of capital among others that we will discuss at length. Let’s get to it 🙂
Lacking a proper team.
A start-up aims at solving a hole in society, finding an easier way around something or simply creating a product? Offering a service that society did not know it needed. You need a good, able team to achieve this. A clear set goal and assigned roles all leading towards the bigger picture. Only through the consistency of every team will a business be sustainable. Many founders make the mistake of recruiting friends or motivating people who do not have an interest in the long-term success of the company. I am not against having friends in your company, but the boundaries must be clear, no reluctance. Evaluate the different wings of your company definitively and hire people with a generally virtuous nature as you want to build a sustainable business, proper work ethic and zeal are also things to look out for.
As humans, we tend to generally plan for the best. We escape or rather ignore the reality or rather possibility that something might go wrong. It might not be as smooth as we play it out in our heads and it certainly isn’t as the business world isn’t for the faint of heart. It involves real risk and taking responsibility. Thus proper planning is very much needed. Have a long term goal in mind and break it down further to annual goals, quarterly down to everyday activities to achieve this. Look and brainstorm on possible challenges you may face while pursuing the set activities, or as a result of performing these activities. Write down your discoveries and look out for opportunities to get your business running. Build a scalable business. One that you know will live to be used for generations to come. Build for the future, think long term.
Lack of capital
Probably the most common problem facing start-ups is the lack of funds to properly explore the depth of their business. This leads to challenges in sometimes scaling up and the general running of the business. There’s not much you can do about this unless you have a different source of revenue to fund your business, until it returns a positive, that is, make profit. Most entrepreneurs look for investors whether individuals or hedge funds. They invest in companies that have the potential to bring back their money and are scalable enough to be worth risking in. You need to be conversant in money matters, knowing how to set up your company to look inviting to investors, branding your product. Your business nonetheless needs to remain afloat so plan your expenses to the last shilling.
Of course, the product is the core of your business but having a fine working product with no one to use is akin to having faith without work. You have to bring awareness to your product. Invest in courses that focus on promoting your business if not, hire the appropriate people to do it. Look for creative new ways to get your message out there, to your target audience. The social media platforms are a great avenue into marketing. Sponsored ads allow you to reach the specific customer you intend with the product .They go hand in hand, products and marketing. Know what kind of advertising marketing reaches your people.
Expecting too much, too soon
This is a business, no one said it would be easy. All these companies valued at billions of dollars were built one brick at a time metaphorically. It takes time to create and get people to adopt a product/ service even with dire demand. You have to have an edge over your competition. The public needs to trust your brand, and people generally don’t generally respond well to change, no matter how much it is needed. Build your business consistently and do not give up based on one or two shortcomings or it not turning out as easy as you thought it’d be. Strive to remain relevant, up float.
All in all start-ups should be encouraged. They are a great way to solve unemployment and create new services and products that will help the human race live a better, simpler life.
They’ll be more as we delve in deeper into the world of start-ups and business in general. Sign Up for the email newsletter so you don’t miss out.