The harsh reality you should be aware of while going to own a start up is that most of the new companies are not able to succeed. Some of the industries in fact have a higher failure rate even for funded companies. There are number of challenges to be faced, but each start up has a story to tell.
However, there are some common challenges that are inevitable for start ups. One Co. Work discusses some of the hurdles here, which are sure to encounter on an entrepreneurial path. Knowing these will lead to better chances of success.
Wrong job responsibilities
The core team can become a hurdle for the start up if the right people are not assigned the correct job. In fact, it is not enough to just get people with the right expertise, all the team members need to share the same vision and principles to work well together as a team. An efficient team where everybody is doing the job he/she is good at can make the start up grow.
Disagreement between team members can make the start up to lose direction, focus and customers, thus impacting the overall growth of the start up.
A big market means a pool of huge opportunities, because even there are many competitors, you still can earn good revenue from a small market share. The common problem faced by start ups is that their passionate team makes a beautiful product that unfortunately attracts a very small segment of the market, in short they create a niche product.
If the ‘masses’ do not want to buy your product, your business will find it difficult to survive. Even if there is not much of competition for you, it would still be tough to scale up, considering the challenge of a small market. Therefore, you must understand the market and its consumers minutely.
Appointing a Good Team
You should not make compromise because of any reason when it comes to hiring the right people. Only appropriate team members can take your start up far. A start up’s success depends heavily on the abilities of its team, because they are the ones who will deliver results and take the start up closer to its vision.
The quality of work is diluted if the team does not match the desired competency levels to execute the plan. The team should be in sync with the start up’s vision, culture and discipline.
Launch Your Product
Every founder and product head is passionate and obsessed about how good their product is. This leads to continuous iterations to further improve the product. No product is all perfect and can still need alterations even after being 100% complete.
If you keep your product wrapped for a long time, your competition could utilise this opportunity to win over you. Consumers always want to try out something new and if your product is launched after someone has already launched a similar thing in the market, you will be seen only like a ‘me-too’ product with limited buyers.
It doesn’t matter if you are an MNC, an SME or a start up, obstacles will always be there in the journey of a business. Important is to be aware and prepare yourself to face them. Knowing about a problem is the first step towards solving it. The mantra is to not to be scared of the obstacles but be ready to beat them with solutions.