Problems to Avoid in a Startup

What Startups should be Aware of

The start-up phase is one of the most exciting and exhausting times you will likely experience in your journey of entrepreneurship.  It takes great courage to venture and build something from scratch; to bring an idea to life. A lot of sacrifices, dedication, and commitment, come into play. Start-ups come with a lot of challenges, so a lot of resilience is required to break through. Some of the common challenges that face startups are as follows;

  • Start up Capital

This is one of the biggest challenges that face start ups. Today many investors are willing to invest in companies and businesses. Unfortunately, most banks, financial institutions, and investors are not too keen on lending money to start-ups. However, even if your startup doesn’t get investors, business owners should treat these meetings as learning opportunities. If this is the case, consider partnering with government funding programs or business programs to get the capitalization required.

  • Improper Planning

It is crucial to have a business plan before you decide to start your enterprise. This is often overlooked, and some prefer to take pants on approach to startups. Having a solid plan in a place gives you a sense of direction, and in case things change course along the way, some modifications may be made. No plan means no vision which in turns means a bleak future for your startup.

  • Executing your Idea

You may have strategies in place to bring your plan to action. What you need to remember, however, is all the factors in play that affect your company are always changing. Business dynamics such as customers, competitors, technology, etc., rarely remain the same, so flexibility and promptness are required to deal with these surprises that spring up along the way.

  • Human Personnel

People are a business’ greatest asset. Some people may decide to take all the weight on their shoulders as opposed to bringing other people on board. It is not a bad idea to get some help because no matter how good you are, it’s impossible to have all the skills required for a company.

Finding employees who fit into your business vision is quite challenging; more so because at the beginning HR policies have not yet been put in place. Different stages of your start up need different skill sets from different people. Building a strong team right from the beginning can make a significant difference in your company.

  • Right attitude towards failure

Building a business is a learning curve; failure is part of that. Every failure is an opportunity to learn and grow from that experience. Valuable lessons are learned which help in the later stages of the business so don’t let those shortcomings way you down. Embrace them and grow from them.

Four Steps From Startup to a growth-Stage Business Organization

Congratulations for successfully starting that new business! Everything is working out well, and you’ve even realized some profit during your first year. Every person should always celebrate after achieving some level success. The same applies to entrepreneurs after taking an idea and turning into a successful and profitable business. Well, it’s time to stop having the same results and start scaling up and growing in a big way. Business growth is not one of those simple stuff that runs smoothly and follows a linear path. It’s a complicated process that requires a proper understanding of all the elements at play. Here are some of the steps businesses must follow to ensure growth.

Focus on what sells best

One of the mistakes you can make is spreading your business too thin at the growth stage. Trying to grow and expand your business into many new markets simultaneously or attempting to do everything for your clients might not work. As a matter of fact, you may end up failing. As a business, your goal should be focusing on your core business areas. What wins the day, in the long run, is targeted growth.

Be strategic when innovating and expanding

Businesses should pivot towards what is selling best. That should be your focus. Don’t keep pursuing what doesn’t sell best. Start by strategizing and innovating into areas that will help in expanding your core business.

Standardize business processes and structures

When in the startup phase, you’ll most likely depend on the expertise and skills of a small core team. However, as you move towards the growth phase, things start changing, and it becomes quite a challenge to maintain the initial level of quality as far as seizing opportunities and impressing clients is concerned. It, therefore, means you need to allow the business processes and products to take center stage to ensure the reproduction of great experiences. You’ll need to utilize technology, employ more efficient hiring methods and develop a business culture that will foster communication and collaboration.

Build your Brand

Many entrepreneurs often forget that client relationship are very key during the startup phase. If you want your clients to have a good perception and think well of your business, you must build a positive brand image. As you get to the growth phase, you must pay attention to your brand image. How do clients perceive your brand? This should be at the center of your business ideals. The only way to ensure a positive brand image for your business is making sure clients get satisfied with your service and have positive experiences. This is where customer service comes into play. Your company should concentrate on excellent customer service and experience, superior product development and client-centric sales plan.