Problems of Starting Up a Business and Solutions – BasedOnNews
Problems of Starting Up a Business and Solutions – We live in a time where Businesses are sprouting on a daily basis. The rate has never been experienced in time. There is a steady rise of highly industrious and motivated entrepreneurs, these individuals are putting in so much to prove their worth in this thriving culture of innovation and technology.
Although, just as many of these startups make a significant presence and flourish, others, unfortunately, do not see the light of day, they disappear into oblivion.
The Adage that says “Survival of the fittest” perfectly applies to business start-ups. The ride to owning a successful business start-up is a tough one. This is why not only a Business Idea is important but also Sound Knowledge for Business sustainability..
Let’s now take quick points on some common problems of start-ups and their preferred solutions.
Problems of Starting Up a Business and Solutions
- 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.
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Suggested 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
Poor planning has led to the failure of many businesses in the first year. Because they do not effectively put in challenges and pitfalls. Despite innovative business ideas and ambitions, a lack of effective and proper planning will lead to a fall.
Suggested Solution:
Before launching a business, ensure to carry out proper research by investigating necessary details such as competitors’ prices, suppliers etc. 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.
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- IMPROPER 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.
Suggested Solution:
Technology today has opened a broad spectrum of avenues for marketing in form of electronic, print, online etc. Startups should 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 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.
- COMPETITION
Every Business Startup is faced with two obstacles which are,
- Monopolistic businesses that have dominated the market, making it difficult for newcomers to emerge and
- Countless startups that are launched regularly in the market having innovative ideas.
This makes it is very much likely to get swallowed by the shadow of other startups.
Suggested Solution:
Competition is quite advantageous due to the fact that it creates an environment for businesses to come out with the best.
However, some times, Competition can be Toxic and can be overcomed by researching and analyzing their niche industry; using unique and different in approach; and also creating, implementing, and tracking their business and marketing plan.
- LACK OF A DEDICATED TEAM
One Secret to a Successful Business is a Dedicated Team.
When all Team Players keep the Vision, Goal and Aims of the Business at heart and pursue it with diligence, the Business will blossom.
If team members start shying away from commitments, the business will never achieve their set goals.
Suggested Solution:
Have a well-dedicated team with diverse skills. It aids Business growth and success. There must be 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.
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- UNREALISTIC EXPECTATIONS
As much as we know that Expectations birthed Success, we should also not be too naive to culture ‘unrealistic expectations’ following a booming success.
Remember, success is sometimes short-lived and expectations never end. Startups must understand real expectations. Sustainability is key and sustainability requires consistent efforts and real expectations
Suggested Solution:
If your Business will succeed in a competitive business world, you will need to have high but controlled expectations, considering the resources available, the extent of growth potential, and other market factors.
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.