Almost every industry is struggling in the pandemic, and everyone has had their fair share of challenges. But this phase has been particularly rough for startup founders due to the contraction in the global economy and the decline in consumer purchase capacity.
Even without the challenges posed by the pandemic, startup founders go through a lot as the whole process of starting a business is quite demanding. They are constantly trying to balance between saving money and investing in tech tools to get ahead.
We have listed below 4 major challenges faced by most startup founders and entrepreneurs in the early stages, and how to overcome them:
- Finding skilled resources:
One of the biggest challenges for a startup if finding skilled and qualified resources who are as invested in your ideas as you. It becomes especially difficult since startup founders cannot offer competitive salaries like big organizations. Finding suitable candidates who are willing to work at lower salaries is a daunting task.
To overcome this, invest in people who have the correct professional and personal characteristics to achieve your startup goals. Instead of randomly hiring people based on impressive resumes, take time to judge their skill set and hire only those who have the mindset to work hard in order to achieve career growth.
- Financial strain:
The worst issue a startup deals with is lack of funds and cash flow problems. A lot of businesses do not see overnight success and mostly see financially bad days in the beginning. Without good financial management, a startup can decline as quickly as it grows.
To avoid such situations, startup founders need to be very conscious about their finances and plan expenditures accordingly. You can also find investors who are interested in your products/services and willing to invest money in your startup, but this can only happen if you offer great ideas and show potential to successfully implement those ideas.
- Dealing with competitors:
No matter what industry you pick, the market is rife with competition. Some other company or startup may already be selling a similar product/service at a better rate, which makes the competition tougher. This makes it crucial to work relentlessly towards getting better recognition and a bigger customer base.
While dealing with the competition, it is important to create a brand image that shows your products/services in the best possible light. Fortunately, you can achieve this without spending a lot of money through digital marketing. Even if you don’t have funds to advertise your products as you are just beginning to generate income, you can easily advertise yourself on social media where it’s much easier to target relevant audiences.
- Managing and retaining resources:
A lot of startups are all over the place in terms of operations and work management in their initial phases. Poor management of tasks makes work inefficient and also negatively impacts the revenue being generated. This often leads to employees not getting paid on time and eventually leads to high employee turnover.
To manage and retain resources well, investing in the right tools helps startups streamline processes. A free project management tool can help in organizing, planning and allocating work efficiently. Using a payroll software automates the payment processes and ensures employees receive accurate salaries on time. This increases employee job satisfaction and compels them to stay longer in their jobs.
Conclusion:
An inadequate team and inefficient marketing can drown a startup even if it has the most innovative products and services. It’s never too late to invest in a good digital marketing plan in order to promote your startup to the fullest. The higher the visibility, the better are your chances of getting successful even though you may have faced all the above mentioned challenges.
This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.
