“The last 10% it takes to launch something takes as much energy as the first 90%,” says Rob Kalin, Co-founder of Etsy.
The concept of a monopoly market is long gone and gracefully replaced by the “perfectly competitive market system.” With nearly 73,366 startups in the United States alone, consumers have multiple choices for products and services. Therefore, ensuring that your business maintains its position has become critical.
Perhaps, it won’t be wrong to say that businesses in this modern-era work on the theory of “survival of the fittest.”
Challenges are ceaseless and can disrupt the ongoing organization’s operation.
However, understanding the company’s strengths, identifying the loopholes, and addressing the potential issues beforehand can give you a competitive advantage.
That’s why, in this article, we’ll discuss the common barriers of startups and their practical resolutions.
1. Far-Fetched Expectations
Statistically speaking, nearly 10% of startups fail within their first year of operation.
Why? It is primarily because of not setting up realistic expectations. Understand that success is often short-term. Therefore, it requires consistent efforts to continue on the path of progress.
Making decisions without any factual information can cause trouble for your organization, impacting its operations.
For instance, assuming that the customers will revisit the store after making their first purchase. This assumption will entice you to order additional inventory. However, if the customer does not return, the inventory will become an additional overhead and affect the business revenue.
In simple words, as a rookie, your major business decisions must be based exclusively on market research and data.
2. Hiring Suitable Candidates
Generally, startups have a small team that independently manages everything- from project development to advertising. Everything is micromanaged to save costs while running the operations smoothly.
However, not hiring suitable candidates only increased their workload, affecting overall productivity.
Contrary to popular opinion, hiring new employees or even outsourcing them can lower the burden, boost efficiency and save resources. It will allow your team to polish their skills and contribute their best.
For instance, you can hire a software development firm to handle the IT needs of your project. They can work with your in-house team to understand client requirements and assist in the compilation of projects in a timely manner.
3. Financial Management
Managing overheads is one of the prominent challenges for corporations and not merely SMEs. With the increase in income, the expenses also elevate. Entrepreneurs need to discover methods to keep the revenue going while cutting costs. Otherwise, overcoming the deficit will become a daunting task.
Fortunately, there are a couple of effective tips to manage accounts. Here’s how:
- Keep track of all the spending
- Limit the fixed expenses
- Outsource employees instead of hiring an in-house team
- Invest a portion of the revenue
- Focus on building a customer base
- Establish and amend financial goals on a monthly basis.
To Sum It All Up
Establishing a startup is a commendable step and requires appreciation. At the same time, it is vital for entrepreneurs to be prepared to align with the marketing changes. Focus on building a loyal customer base and invest your resources wisely to stay ahead of the fierce competition.