Business start-ups are constantly becoming the order of the day. Let’s face it, we live in the age where startups are exploding everywhere like never before.
With the constant rise of highly industrious and motivated entrepreneurs, these individuals are leaving no stone unturned to prove their worth in this thriving culture of innovation and technology.
However, just as many of these startups make a significant presence and flourish, others, unfortunately, disappear into oblivion.
READ: How five Nigerian tech-startups are tackling COVID-19 outbreak
There’s an adage that says “Survival of the fittest”. Truth be told, this adage apart from humans alone is also applicable to business start-ups. The road to having a successful business start-up isn’t a smooth one which is why it is important for entrepreneurs to not only get an idea and start up a business but also gain the necessary knowledge that could help in bringing the business into existence.
Having analyzed all of this, we are left with questions such as, how many startups can survive the tough waves of change? Why do business start-ups fail initially? We could say it is as a result of highrisk situations attached with startups, whereby a failed strategy acts as a trigger. With challenges everywhere, general business and particularly start-up businesses, it is important to take note of some of these challenges that are faced in that area. Going further, let’s take quick points on some common problems of start-ups and their preferred solutions.
READ: Mining to contribute 3.0% to GDP by 2025
Lack Of Finances
One of the most essentials for startups to survive is finance. With income increasing and expenses also increasing, startups basically rely on investors who provide strong financial support. Therefore when a situation of lack of finances arises, the start-ups are usually the first to suffer it and eventually submit to the situation. While trying to put in funds into the business, entrepreneurs have to also make sure to pay other necessary bills.
Solution: A solution to this challenge is finding ways in which cost can be minimized. It’s also not a bad idea to go the digitalized way. Entrepreneurs can make use of accounting softwares to keep track of their inflow and outflow.
Poor Business Planning
Another major key for business start-ups is proper business planning. Poor planning has led to the failure of many businesses in the first year. Why? Because they do not effectively put in challenges and pitfalls. As much as your business has innovative ideas and ambitions, a lack of effective and proper planning will lead to a crash.
Solution: Before launching a business, it is important to carry out proper research by investigating necessary details such as competitors’ prices, suppliers and the rest. This approach builds a solid foundation for a successful business. Also, writing an effective business plan helps startups to define their business, target audience, operational conduct and the amount of money that it will generate and spend.
READ: Sterling Bank gets CBN approval for restructuring
Lack Of Proper Marketing Strategy
It is always a challenge for startups to figure out how best they can market their products or services and have it reach a wider audience.
Solution: Technology today has practically made a lot of things easier as it has opened a broad spectrum of avenues for marketing in form of electronic, print, online etc. Therefore, startups need to seek out ways in which they can create innovative marketing plans, advert placing, to let people know the worth of their product or services. A good marketing strategy should have a vision, a mission and a business goal. It should be able to give a detailed explanation of the role of business products or services in the market. A good proper marketing strategy will keep customers loyal towards the products or services.
READ: Here’s how your business can grow revenue in tough conditions (PART 2)
Competition
A fierce competition happens to be the most inevitable challenge that startups face. Startups are usually faced with two obstacles which are, monopolistic businesses that have dominated the market, making it difficult for newcomers to emerge and secondly, countless startups that are launched regularly in the market having innovative ideas, so it is very much likely to get swallowed by the shadow of other startups.
Solution: The good thing about competition is that it creates an environment for businesses to come out with the best. There is, in fact, a whole lot of opportunities existing for entrepreneurs because switching costs for most customers are low and many are willing to try new, relatively untested products or services. To overcome the challenge of competition, startups need to research and analyze their niche industry; should be unique and different in approach; and also be able to create, implement, and track their business and marketing plan, which is very important.
READ: 5 things you can do to attract equity funding for your business
Lack Of A Dedicated Team
A good and dedicated team is everything. Lack of a proper team can cause a business to suffer immensely. Lack of commitment can aggravate frustration in the organization which quickly escalates into an open conflict. If team members start making under commitments due to the fear of being responsible or blamed for failure, businesses will never achieve their set goals.
Solution: A well-dedicated team with diverse skills is very important for startups to grow and succeed. There ought to be a proper synergy, coordination, and good communication among the members of a team. A team is formed by individuals who have different range of capabilities with identical focus which allows for members to help each other, learn from each other, and put a concerted effort in order to achieve success.
READ: FG yet to earn return of N1.5 trillion investment on privatised power firms
Unrealistic Expectations
Success comes with expectations. Startups tend to face challenges when they set ‘unrealistic expectations’ following a booming success. Remember, success is usually short-lived and expectations never end. This is where startups need to understand what the real expectations are. Sustainability is key and sustainability requires consistent efforts.
Solution: In order for startups to succeed in a competitive business world, they need to have high but controlled expectations, keeping in mind the resources available, the extent of growth potential, and other market factors that need to be considered as well.
In conclusion, challenges and problems are inevitable as far as the success journey of a startup is concerned. Therefore, it is important for entrepreneurs to be resilient and focused towards keeping their values intact no matter what the circumstances are.
This article is indeed helpful