If there’s been a boom in job employment, economy, and innovative products, it’s all thanks to the rising start-up companies worldwide. With unicorns appearing, making their mark now and then, and every second connection of yours becoming a founder, it’s got the whole town talking about it. But no one tells you about the daily challenges faced by start-up founders. It all sounds too exciting to have exciting business ideas, start a company and meet new people in the industry. But there’s a lot of hard work, time, and perseverance behind the scenes. And, despite that, sometimes it just so happens that these start-ups don’t make it for too long.
According to DemandSage, almost 90% of start-ups in the world fail. So in this blog, we will dig deep into the common challenges faced by start-up founders and list their solutions so that you consider all these factors the next time you decide to start a company.
5 Challenges Faced By Start-Up Founders
Lack Of Planning
As simple as this sounds, it is true. Many start-up founders need to pay more attention to this and plan every aspect of a business meticulously. Start-up founders need to consider everything, from hiring, sales, and marketing to software development and, most important, market research. It does happen that sometimes you miss out on one aspect, but you should always be prepared for contingencies.
Undermining Your Competition
Another familiar problem start-up founders face is when they think they need more competition. This mistake can prove to be very costly in the long run. Entrepreneurs must do their due diligence and research about the current market demand, how their products can solve a problem, strategies and techniques used by competitors, and how their products stand out. With so many new start-ups emerging from every corner, chances are you have a lot of competition you don’t know about. So keep in mind this factor, too, as many founders fail to realize it.
Unable To Hire The Right Team
Studies have shown that successful teams contribute to successful start-ups, especially when there’s a solo founder. It’s only fair that you hire the right people who think like you, see your vision and goals, and possess the necessary skill set to execute them. But it’s not always easygoing, and finding someone who sees your vision, in the long run, can be expensive and challenging. At the early discovery stage, it’s better to outsource certain aspects of your work, such as product and software development, to professionals who know what they are doing. This way, you can focus on other essential aspects of setting up your business.
One example to showcase this would be Zerodha, which is now India’s largest stockbroking platform. For more than a decade, Zerodha has made its mark in the industry, but did you know that its team consisted of just 30 tech members for the first seven years? When the founder was asked that question, he replied by saying that companies don’t necessarily need large teams to write software. Hiring a handful of people with the proper skill set will get the job done!
Lack Of Customer-Centric Thinking
Every founder with an idea thinks it’s the most unique and problem-solving. However, that might not be the case in reality. They need to study the demand or, rather, their customer profiles and see whether or not it meets their needs. This can be done by profiling their ideal customers, constantly being in touch with them, getting their feedback, and analyzing how you can further improve your products and services. Customers are the primary reason a business can make or break, so treat them the way you want them to treat you.
Failing To Execute Promptly
Many start-up founders tend to focus their initial stage on getting the proper funding from investors. This is even before having a product, thereby leading to a delay. Instead, they should focus on getting their MVP as soon as possible to launch it to their early adopters. This will help them gain initial traction and collect valuable feedback. Remember, the clock is always ticking, so better to race against it.
Setting up your start-up might seem daunting, with numerous challenges at your doorstep daily. Remember, you’re here for the long run, so this is common; what matters is how you overcome them and have the perseverance to keep it going. You can overcome the challenges mentioned above by outsourcing your work early. And our team at Night Lab Tech is here to help you with that. If you think you have a brilliant idea, then we’re here to turn it into a reality. From evaluating your idea, to designing your prototype and launching your MVP, we’re here at every stage. Book a free consultation with our team to get started today!