There are billions of start up launching every year.
But the question remains, how many Startups tend to survive the violent waves of change ?
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Yes, there is a huge paradigm shift. And that shift has challenged the overall functionality of startups.
Challenges are everywhere. And businesses – in general and startups in particular . Not going in much detail as to what should be done but I’m writing down few obstacles.
1. Weak co founders
Hard to believe, but your co-founders may be part of your startup’s woes.Lack of the skills needed to help run the business can lead to destruction of your dreams. Startups may need new executives to spread the workload. If the founder or/and co founders lacks skills then no matter how great your team is it will all go in vain.
2. Business Model failure
I realized that one of the most common causes of failure in the startup world is that entrepreneurs are too optimistic about how easy it will be to acquire customers.
They assume that because they will build an interesting web site, product, or service, that customers will beat a path to their door.
A simple way to focus on what matters in your business model is look at these two questions:
- Can you find a scalable way to acquire customers
- Can you then monetize those customers at a significantly higher level than your cost of acquisition
3. Hiring suitable Candidates
There is a huge pool of aspiring candidates available. Selecting a suitable individual that fits the job well enough is the most tricky task. It is one of the Biggest Challenges facing the startup businesses in this digital age.
4. Funds
Yes, you need money. Unless you’re remarkably lucky and the cash flows in straight away from sales or investors, you will be in trouble. Shortage of funds will lead to delay in terms of hiring staff, office space etc. You need smooth flow of funds when it comes to any resources.
David Roth says, “As leaders, it’s our job to manage the time and money needed to get to the next level without running out of either one.”
5. Research
This is the one of the biggest challenges for a startup to feed its products and services in the right Target Audience. Gathering primary and secondary data to back certain assumptions on business projections is the key. Once this is done the excel sheet can show some valid projections.
What are your views on this? let us know through comments below.
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