It’s the age of entrepreneurs because of the unlimited opportunities we have in the twenty-first century. Still, we see that most businesses fail within their first five years. This happens because they are unable to predict all coming challenges. New entrepreneurs become very good at their technical skills and they learn the entire market, but they don’t understand that it takes more to run a business.
A business requires technical skills as well as marketing, managerial, and human resources skills. If you are thinking about starting a business, here are a few challenges you should be prepared for.
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Not Enough Finances
The very first challenge for any startup is arranging finances. You will have to visit many VCs and investors to convince them to give you money. There are many ways you can arrange finances for the business, but it requires a big amount. People don’t just give away so much money to anyone. You have to prove to them that you can make them more money.
They are experienced businessmen who understand how business works. If they have any doubts, they will pass. They are not going to take any big risks. After all, most of them also have their clients that they have to report to. Make sure you do your homework on the market, create a smart business plan, and give an outstanding presentation to impress them. You should also consider taking a business loan from an online service like Thinking Capital.
Marketing Not Working
Marketing is important for sales, no business can survive without sales. You can’t keep investing more and more money without any return. This is why your marketing has to be smart and effective. Unfortunately, many businesses face a time when their marketing doesn’t work at all. They know it’s not working when they are not getting any sales.
You should be mentally prepared for this time. Know that it takes marketing some time and investment before it starts to work. Marketers are approaching a new audience with a new product, so it will take some testing before they can tell what works and what doesn’t. If one strategy doesn’t work, it means you need to try another approach.
Can’t Find the Right Team
A company is only as good as its employees. You won’t be able to make your place in a tough market without a tough team. You will need the most competent people in your team. However, it’s not that easy to attract and retain such skilled professionals, especially when you are just a startup.
You will also make the mistake of hiring the wrong people. Incompetent people don’t easily leave and they keep draining your company. They won’t let you grow and do only enough to make do. Make sure you take the time to find and attract the most skilled professionals even if you have to offer them a share.
Competitors Trying to Destroy You
You would barely survive as a startup. If you manage to succeed, you will have competitors trying to destroy you. There have been cases where big companies invested money to run small companies out of business.
One popular example is the story of Amazon and Diapers. Amazon tried to acquire Diapers, but the deal didn’t go through. So, the giant started offering diaper products on loss just to run the Diapers out of business. Even if not exactly, you will also face challenges from your competitors. A new business means fewer sales for them. Instead of waiting for you to slowly take away their customers, they might take the loss to destroy you firsthand.