Start-ups: A Look Into The Issues That Occur During Business Start-ups
Starting a business is not easy, there are many types of hurdles or problems that occur during the starting phase of the business.
It doesn’t matter! How perfect are you? How best are your planning or ideas? But still, some things that we sometimes miss or forget or are unable to plan properly often create many issues for your business.
Today’s in this article we are going to discuss such top major issues that occur during business startups.
The first and most issue that occurs during business startups is the money problem. We have seen that the most of businesses fail due to a lack of money. Before starting the business we often mistake in the budget calculation which leads to business failure.
As per the US bank study in 2004, 79% of business failures due to “start with low capital”, it is one of the prime reasons for business failures. It is because we always consider the calculation based on the idea of a successful business instead to calculate the worst scenario. I understand business owners need to be optimistic in starting phase but having too optimism may create a problem as well. Therefore, we have to think about both prospects. Without having sufficient cash flow can end your business during slow sales, or a downturn in the market.
Marketing is one of the common problem for every new business, sometimes business owners start too early with print advertising or other commercial advertisements without having idea of their target market and waste lots of money which later creates a problem while managing their businesses.
Or, sometimes people start a late advertisement or don’t make enough budget that much it is required for marketing which again creates a problem because of lack of business.
Marketing is the most important part of every business which generates business (or cash flow) for your company. A famous quote “Investing money in marketing never goes waste”.
Neither we should stop investing in marketing nor we should invest over your budget. Instead, make the right strategy focussing your target audience and put the right amount of money doesn’t exceed your budget. Because good marketing not only makes the company look smart but also makes the customer feel smart.
A new study shows that the company investing in customer experience (CX) can outperform their peers.
Managing Business and Family
Most of the businesses fail due to poorly managing businesses with family. Business requires proper dedication and commitment and it becomes more important when you are a startup because startup owners often face some problems while balancing the businesses with family needs. If the effect of your workplace stress seen into the home, it may affect your business ultimately.
It often has when people start their own work after leaving their full-time job which leads to financial stresses and other problems at home. Money is the solution to every problem and starting a business by cutting down your one source of income may create a problem for your family as well as your business. Therefore, think twice before doing that because I’d not recommend you doing so.
Starting a business alone
Starting a business alone is a common problem most entrepreneurs face – it is a belief that they can handle all startup’s operations by themselves. It could be a cost-effective approach but not good for your business or the best ways to utilize your time.
Many startups may not require the employees for full time but having two employees, an accountant or an HR are good to start with. Because with these experienced and reliable assistance you can avoid many other common business mistakes. Therefore, be careful in your choice when you hire the staff. Employees are a crucial component in the success of your business.
Poorly priced products, services
Poorly priced products and services can also lead to business failure. Every business needs different products such as office supplies or stationary, printers, and other hardware products, therefore, it is very important to contact the right supplier who can provide all necessary office supplies at reasonable prices.
Managing cash flow is the most important part of a business because every small cut in prices makes a huge contribution to your business. The more you can cut the prices in products the more it is beneficial for your business. Make sure cutting down the prices is not a solution. The quality of the products should be good, it happens sometimes you get the cheap product at a lower price which may cost you double or more during its maintenance or repairing. The quality should not be compromised. Therefore, choosing an appropriate vendor should be on the top of your priority list.
There are other various types of issues (depending on the nature of your business) that occur during business startups but here all the above are the main issues that every business face in its starting face.
Therefore, keeping focussing on these issues should be top on your priority list, once you are able to do that I believe your business will surely grow up!