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11 biggest challenges we've faced so far on our journey — and what we've learned from startup founder
Every
startup founder knows from the
outset that there will be obstacles. But sometimes they can still surprise you — whether it's because you just didn't anticipate them,
you're unsure of the best way to respond, or you don't have the resources you
need to address them properly.
Here are some of the main issues you need to watch out for,
so you can plan ahead and know what to do if they do.
Challenge # 1: Money
Let's get it right: yes, you need some money. Unless you are
remarkably lucky and cash flows in straight away, either from sales or
investors, the money will be a matter sooner rather than later.
And when cash flow issues hit a startup, they can hit hard,
delay significant progress, such as rolling out products, hiring key staff, or
setting up new offices.
You will need capital to fund software or product
development, office space, marketing, and more. Most of your success will come
from that initial investment.
So even though it might seem counter-intuitive when you're
trying to minimize financial risk at the outset, the last thing a startup needs
to do is cut back costs (and drop staff) in its early days, just when it needs
to focus its energies elsewhere.
Entrepreneur
David Roth has little patience with the people who founded the startup and then
ran out of cash: "As leaders, it's our job to manage the time and money
needed to get to the next level without running out of either." So plan it all out before you start, lest you find yourself
halfway through and suddenly fall out of the air like Wile E. Coyote's trying
to run at full speed across the canyon.
Challenge # 2:
Marketing and Sales Neglect
Are you putting enough resources into marketing and selling?
Some startups think they can completely ignore these two
functions and hope that word of mouth is enough. Or if they are a SaaS company,
they might believe that online sales are going to grow organically and that IRL
sales and marketing teams are not needed.
But it's a false economy to put your faith in customers
discovering you unless you make a concerted effort to grow them with a
well-structured plan to promote your start-up. An easy-to-use website builder
like Bookmark is a great resource that can help you get your online presence
started quickly.
Once your site is up and running, investing effort in SEO can help ensure that your website
is accessible to search engines and that your content ranking for the relevant
keywords drive visitors to your website. Using startups can help you monitor
your SEO health and identify
opportunities to improve your online visibility and when you build your sales and marketing functions from
the ground up, take the opportunity to make them as aligned and integrated as
possible right from the start.
Challenge 3: Lack of
planning
It's amazing how many startups fail because they
"forgot" to plan. Or maybe they did a plan, but they just didn't
cover all the bases.
Key areas such as sales, development, staffing, skills
shortages, and funding are not an afterthought. They should all be part of your
business plan right from the start.
Not only that, but you also need to plan things that you
can't plan for. That is, even if you can't prepare for every event, you need to
know what you're going to do when (not if) events take an unexpected turn.
If your business plan is all optimistic and doesn't allow
surprises, then you're going to have a lot of trouble. As the saying goes,
"if you can't prepare, prepare to fail." So don't leave the details
to later.
Challenge # 4: Find
the right people
Certain skills are crucial not only for your business to
survive, but also for your business to grow. Knowing the exact skills you need
— and how to get those essential people on board — may be a determining factor
in how well your startup thrives.
Delays in finding the right staff are costly. For a small
team, the recruitment process consumes valuable time that could be spent on
other areas of business, but, on the other hand, not having the right people
can create serious bottlenecks and stall the roll-out of new products and
services. These are hold-ups that no startup can afford, especially in the
early days.
And, as your company grows, you might find yourself facing
another tricky staff problem: realizing that you hired the wrong people. (Or
the right people in the wrong roles.) These kinds of uncomfortable truths can
be revealed when the startup is expanding and the cracks are suddenly
magnified.
That's
why it's so important to make it a priority to set out your hiring strategy
right at the start. Then, when you're clear about what you're looking for,
strategy key hires and thinks carefully about each role that fits in with the
goals you want to achieve.
Challenge 5: Time
management
In startups, as in life, there's never enough time left.
There are a million and one decisions to be taken and only 24 hours a day (and
some of them are supposed to be sleeping).
So start with eliminating or minimizing distractions —
anything that gets in the way of running your business.
Focus your time and energy on the most powerful things. Ask
yourself: what's important and what can be postponed until tomorrow? What's
stopping your company from growing? Those are the answers that you should be
dealing with today.
And when you're trying to set priorities, borrow a tip from
former Olympic athlete Ben Hunts-Davis and ask yourself: is this going to make
the boat go faster?
In other words, will this decision or action have
significant, measurable, positive results that will help you meet your targets?
Or is it just a "nice to have" you can add later on?
Cut the noise and focus on things that move the needle (or
the boat) around.
Challenge # 6: The
Founders
It's hard to believe, but the founders of a startup — the
very same people who passionately nurtured their idea from nothing to business
— may actually be contributing to their woes.
While the founder
may have developed a great product and set the wheels of the entire venture in
motion, they can't do it all.
And even if they could, they're not supposed to. It's not
just a time thing (see Challenge # 5), it's a skill thing.
Good leaders know the extent — and limitations — of their
expertise. They know that being a great developer, for example, doesn't
necessarily mean being great at sales/finance/marketing / HR / all the many
other things a startup needs to do to make a successful scale.
So if you're a founder, avoid making the big mistake of
thinking that you can do it all on your own. Don't listen to all the work and
major decisions for yourself; spread the workload around. Hire other executives
who can fill your knowledge gaps and listen to what they have to say.
Challenge # 7: Scale
up
So your products or services are experiencing phenomenal
growth — you're lucky!
But now you're going to find yourself with a whole new set
of headaches as you try to scale to meet this increased demand.
It's not just a matter of adding a few extra staff. As we've
learned from Challenge # 4, you need to be strategic and prioritize roles that
will have the most impact — and they're not always the ones you're thinking
about. You may need to hire more HR staff (since you suddenly have a lot more
staff), or you may need to focus on building up functions like administration,
payroll, or support.
You may also need a larger office space to deal with your
increased staff numbers (and if you haven't budgeted for that, you'll need to
come up with a real quick alternative if you want to avoid stacking employees
like Lego). Or you may need to set up offices in other cities or abroad so that
you can better support your key customer base.
That's the price of success. If you've got a plan and cash
to fund all of this, great. If not, prepare for a painful process.
Challenge # 8: Your area of comfort
So, what are you willing to do? Are you prepared to put
yourself in the hard yards to make your startup thrive? Can you, for example,
make a convincing pitch for potential investors when you need funding?
And just as important: is there anything for you that
isn't negotiable? Anything you don't want to do under any circumstances?
The early definition of your comfort zone means that you
can make provision for this if you need to, so that you can find team members
who are comfortable doing things that make you uncomfortable.
Challenge # 9:
Contestants
No matter how great your products or services are, the
market is crowded.
And it's growing all the time: you're not going to be a new
kid on the block for a long time, and new rivals can quickly change the
playing field.
So you need to put yourself in the place of a potential
customer and see how you stack up. What makes your company different, huh? What
makes your products so special? What makes your brand unique to you? Why would
someone have chosen you over your competitors?
When it comes to your competitors, you need to strike the
right balance between "us" and "them." Don't just define
yourself in relation to your competitors: you need to be confident about what
you bring to the table, too.
But you also need to keep an eye on the competition and the
(rapid-changing) landscape. Having the right strategy, being able to think on
your feet, and being able to adapt to the new reality, will define your success
— or your failure.
Challenge # 10: Poor
management
One thing startups can't afford is inefficient management. A management team that has worked well in the initial stages may find itself
struggling as the startup expands, as anything from poor sales to market
conditions is being tested. You need the right people to make the right
decisions.
So,
as you build up your leadership team, you need to do two things. (Well, you
need to do a lot of things, but let's focus on two for this particular point.)
First, you need to make sure that your team works well together. To be
effective, you need to keep everyone on the same page. One way to do this is to
build transparency in the decision-making process of your management team so
that everyone on the team knows how important decisions are made. Second, you
need to make sure your team is working well, the period of time. Be on the lookout
for what is and isn't getting results, and if you see any underlying long-term
issues, address them as soon as you can before they become major issues. It
could lead to some uncomfortable conversations — maybe some uncomfortable
decisions — but having strong management is vital to steer your startup in the
right direction.
Challenge # 11: Lack
of mentoring:
![](https://www.indiaaccelerator.co/wp-content/uploads/2019/05/5-Reasons-Why-You-Need-A-Mentor-to-Ensure-your-Startups-Success-1170x700.jpg )