Working for someone else for a living isn’t everyone’s cup of tea. Some aren’t satisfied with making the dreams of other business owners come true, and instead want to pursue their own path of becoming an entrepreneur. Owning your own business is something that tends to fill people with pride and accomplishment, and is well-deserved as it’s not an easy journey.
If you’ve decided that 2020 is going to be the year that you start to pursue your own dreams in terms of your career, and open your own startup, then there is no doubt you’ve already been thinking about it for quite some time. And while you are probably realistic about the fact that there will be challenges and bumps in the road, it is helpful to be specific in what the common challenges are and how you will deal with them should they arise. It’s this game-plan that can help you weather the pitfalls in a more efficient, faster, and successful way.
So, let’s take a look at eight common challenges that startups face, and how to deal with these bumps in the road.
The Business Doesn’t Provide an In-Demand Service or Product
Here’s the very cornerstone of success when you start a new company. Regardless of how much time and energy you have spent setting it up and securing your funds, if it’s not a product or service that people want, then it’s not going to survive. Now this doesn’t mean you have to be out there inventing a brand-new product, service, or process, but you do need to offer something that has its own unique spin or twist that will lure people in.
This is where market research can come in extremely handy. This should be done before you launch your products or services, taking a close look at market trends, purchasing habits, deficiencies in the market, pricing, competition, and more.
A Lack of Startup Funds
Another huge challenge in those early days before you even open up shop is a lack of startup funds. Most people don’t have the luxury of a giant bundle of cash in savings, which means they need to come up with funds in a different way. That could be through investors, a partner, a small business loan, or other sources of financing.
The key is to ensure you’ve got enough cash to open up the business, and then keep it afloat for at least six months to a year while you build your customer base.
Being Unsure of What an LLC Is
The structure of your business will also determine how many challenges you face, and how you weather those storms. One of the most common, and frankly the smartest structure for a new startup company is an LLC, or a limited liability company. A limited liability company will protect your own personal assets should things go poorly with your business. Of course, there is much more to it than just that.
You’ll want to take the time to research LLCs in your own state. Let’s take for example an LLC in Texas. You can learn all the ins and outs of how to start an LLC in Texas with the free guide on this website from Truic. The guide covers such topics as how to form an LLC in Texas, how to protect your business and personal assets, how to keep your company compliant, and how to make running a business easier. It even takes you through the specific steps of creating an LLC in Texas.
There Isn’t a Clear Mission Statement
Maybe you’re familiar with the term “mission statement” and just figure it is optional and not something you need to craft for your company. Here’s the thing, your mission statement is the blueprint of your business, it is what will guide you through the good and bad times. It’s also what lenders, partners, and investors will demand to see if you need to secure any outside funding.
Your mission statement should clearly lay out the goals of the company, both short-term and long-term. It also needs to address how you will meet those goals, it should establish the core values and culture of the company, and cause a sense of enthusiasm and prompt others to want to be part of the journey.
If you’re unsure of how to write a direct, clear, and effective mission statement, there are all kinds of online guides that you can refer to.
A Lack of Talent – Not Hiring the Right Employees
Then there is the challenge of finding the best staff for your company. Your staff is what will help get the company off the ground, act as the face of the business, and help you to push towards meeting your goals. This means they need to have the proper skills, training, experience, and drive to get the job done.
The hiring process shouldn’t be something you rush, rather you should take your time searching for the right people. Make sure to post your ad through online job boards, at local university/college campuses, and on local hiring sites. If you’re still having a hard time finding qualified staff, you can always enlist the services of a professional employee hunter service – commonly referred to as a head hunter.
Debating Whether or Not to Create a Website
Today, it’s not a question of whether or not you should create a website for your company; instead, it should be about how much you are willing to invest in the site’s development.
Today’s consumers and clients expect your company to have a professional, user-friendly, and informative website that doesn’t just provide basic contact details, but useful information about products and services that you offer. Your website is an extension of the company, even if it’s not an ecommerce site, so that should always be front and center in your mind.
Overhead Costs Are Too High
There is no avoiding overhead costs when it comes to operating a business. No matter how big or small your company is, or the industry that it resides in, there will be overhead costs. The key is to keep them in check and as low as possible. These can eat at your profits quite heavily, so it’s wise to constantly be looking for ways to streamline processes, improve flow, and cut down on overhead costs.
There Is No Plan on How to Compete with Others in the Field
Competition is part of business, and you have to be aware of this and accept it when you enter into the ring. So, what’s the best way to compete with others? Arming yourself with knowledge. Again, it goes back to research; doing your fair share of research on the competition well in advance of opening up shop. This will give you an insight of what the competition offers, their pricing model, who their customers are, what niche areas they are in, and then highlight areas that you could shine and make your own mark.
Plenty of Other Challenges to Be Ready For
This is just a small look at the many challenges that your startup will face before it opens up its doors and during those initial first few months and year. While challenges are normal and part of the journey, it’s how you deal with them and overcome them that will help determine the success and lifespan of your business.
