Launching a startup is a dream that many people have in life, and doing so can be an incredible accomplishment. The process of launching a startup requires quite a few steps, but the launch is the easy part when you consider the challenges of keeping the business going.
Today, we are going to be talking about the process you need to engage in if you want to launch a startup in 2020 successfully.
Common Startup Problems
Low Cash Flow
There are many problems that startups face in their beginning stages. Most of the time, the issue is low cash flow, making it hard for the business to handle any delays in terms of launching and finding their first clients.
Finding and locking down those initial clients as quickly as possible is the first and most crucial aspect of the startup process. The most significant concern here is that the clock never stops ticking, and some startups only have enough initial capital to go a few weeks to a month without generating income.
In most cases, you can expect all the common startup problems affecting most business ventures. Among these, the one that sticks out is the one that can be seen in hindsight: a lack of planning, and that is what we are going to be discussing in detail next.
Lack of Planning for Marketing Strategies
When a budget is assigned to a startup, you need to make sure that you can set some of that money aside for marketing purposes. Starting a startup requires that you invest in promotion as a critical part of that initial push to gain momentum. While it is possible for the marketing to be done without investing in ads, you are very unlikely to see any results within days or weeks.
It’s especially recommended that most startups seek out a marketing agency if they really want to make the most of their marketing budget. Having some money to invest in ads does not guarantee success if you are unable to target those ads properly. Experience in digital marketing is going to play a very important role in the kind of results that you are able to achieve.
A good digital marketing agency or individual marketing expert is going to make a world of difference in helping you avoid startup problems. Their advice is also going to be useful for you to go solo with your digital marketing efforts once you have learned from someone with experience.
How to Overcome Startup Challenges
1. Manage your startup budget carefully.
When people wonder how to make a startup succeed, they often find that the biggest challenge they have is too little time compounded with a small budget. The best way to deal with this kind of situation is to ensure that you can handle the process to the best of your ability, meaning that you have to be careful about the way you manage your startup capital.
If you see something that seems too good to be true, it probably is. For example, someone telling you they can send targeted traffic to your startup website at a very cheap cost. If they claim that you will get a lot of sales and find dozens of customers for just a few bucks, they are selling you snake oil, and you’ll be left disappointed.
And that’s just the digital marketing aspect of the problem. There are other issues to deal with once you decide to start a startup.
2. Do market research.
When creating a startup, you are going to have to do some market research to see if your product is viable. You can’t skip this step because it will help determine if you are going to be able to sell your products when people find your business.
3. Have realistic notions.
Finding your target audience is only going to be the first stage of the process. You also need to make sure that your product or service is appealing enough for those people to be interested in buying it.
It’s critical that you have a realistic notion of what is and isn’t viable as a product or service. Maybe you and your friends think it’s a great idea. That doesn’t mean people are going to buy it, and if that’s the case, prepare for failure.
Why Do Most Startups Fail?
One of the most common reasons why startups fail is the lack of planning in terms of their actions for the first 30 to 60 days. This is going to be crucial for success, and without a game plan, it’s going to prove difficult to get any kind of relevant results.
The biggest mistake that startups make is thinking that clients are just going to fall into their laps, and this is rarely the case. The truth is that most times, it is going to be very difficult, and that is one of the reasons why so many people end up with such common startup issues like lack of capital to continue to even keep the lights on during those initial years.
How Do You Start a Successful Startup?
The first thing that successful startup companies do is make sure that they are able to brainstorm the best ways to get their businesses off the ground. This means that they will take their time, and plan the strategies to promote their businesses. In some cases, they already have a few customers lined up by the time they officially launch the business.
A good startup business strategy is extremely important, and it will give you the opportunity to set yourself on the right track. The most important thing is to always be thinking ahead when it comes to the challenges that you are going to be facing. Don’t launch the startup without a solid plan for your marketing, budgeting, or any emergencies that may crop up during the launch. (Because something always crops up.)
If you want to take on the challenge of a startup company, you need to be able to envision how you plan to tackle that initial stage because it is during those first few months that things are going to be the hardest. If you fail to plan for the worst and just straight-up dive in hoping for the best, you are going to find yourself in a bad situation.
What Challenges do Start Up Businesses Face Aside from Financial Issues?
#1 Lack of experience of launching a startup
If you have built several successful startups in the past, you already have the experience needed to get started, but if this is your first startup, you are going to need help. If you think you’re going to build the next big thing all by yourself, you’re in for a rude awakening.
To build a startup, you need to invest in yourself if you want to keep the startup viable from the outset. That old adage, “you have to spend money to make money,” has stood the test of time for a reason.
First and foremost, you’ve got to invest in your own financial and technical education. Investing in the knowledge that is going to help you upgrade your skills for the startup is fundamental to building a solid foundation for future success.
However, there may be times when entrepreneurs and startups should seek guidance from business experts. A very common issue and also potentially the biggest struggle in starting a business is that some people just don’t see the value in investing their capital in professional help. They don’t even realize they need that help until after their capital has dried up.
#2 External Issues and Situations
Another kind of challenges startups face is when they are dealing with issues that are unrelated to their business but are still causing headaches. For example, the existing COVID-19 pandemic is, as you can imagine, causing a lot of problems for startups. You need to have a backup plan in case something like this happens while you are launching your startup.
This is not only important due to the unpredictable issues that can arise at any time but also because it will give you peace of mind when you consider that the big, bad world will always be outside of your control. You’ve got to be ready to mitigate whatever it throws your way.
#3 Lack of Dedication and Commitment
One of the most relevant and important things to consider if you want to succeed with your startup is that the first few years are going to be a lot of grueling work and sacrifice. Being dedicated and committed to your business is going to prove extremely relevant if you want to succeed.
This means long hours and late nights. It also means less time for fun and more time dedicated to the business. These are the sacrifices that everyone needs to make if they are going to make it in the startup world. If you’re not prepared to shed your blood, sweat, and tears for a chance at success, then maybe launching a startup isn't for you.
Starting a business is not the same as making it work. Anyone can start a business, but very few people have the discipline and make the right decisions to guarantee the survival of that business. This is what makes or breaks any new venture, and you have to be able to meet the challenge head-on in order to come out on top.
#4 Smart Work Versus Hard Work
Your startup is going to require hard work, but you also need to be able to switch to a smart workflow if you’re going to handle startup growth effectively. Working smart means learning how to maximize profit while making the least amount of unnecessary effort.
Don’t forget that your business is going to require your undivided attention at first, so there should be a transition process that allows you to evolve. This is going to be a key moment in your business because it will make it possible for you to adapt to that evolution and see more profit for less work.
Some people work hard their entire lives, and they never achieve anything more than having two low paying jobs and barely making ends meet. It’s a sad fact that hard work doesn’t always pay off. Another perhaps trite-but-true trope is that you’ll need to work smarter, not harder. What processes can you do without? What processes can you automate?
You can also think about building an app for your business, as now people spend hours in their mobiles and laptops. And you can't lose customers just because your business is not present there. The website or mobile app selling your services may not only icrease profit by getting new customers (which is already a great benefit) but also by making your brand more recognizable, building trust and engaging the existing clients.
Check Apiko's portfolio for more projects - https://apiko.com/portfolio/
A growing startup is a dream. Though the initial stages are going to be tough, though the number of failed startups outweighs the successful ones by a wide margin, this can all be mitigated or avoided if you show up plan-in-hand, ready to budget with your nose to the grindstone.
There are many ways to go about the question of how to build a startup, but planning and budgeting are going to be essential, regardless of your approach. And if you want to expand and open up new horizons for your business in the world of software, Apiko can help you with that!Business growth