The world of startups is amazing and expanding. The terms like ‘survival of the fittest” and “a smooth sea never make good sailors” it seems to be made for the world of startups and for the entrepreneurs. Every year, 50 million new startups are launching around the world, but still, we only have 150 million startups right now which shows how much it is tough to survive in the market with your idea. According to the report, on an average, 137,000 startups emerge daily in the world which is huge standards by any means.
However, the majority of the startups failed from these numbers that is why we only witness few startups working successfully in our daily lives. Because of the contrast in the numbers of successful and unsuccessful startups, the questions on the tendency of the survival in the startups raise and what problems cause them to shut the entrepreneur their startup down raise.
Discussing every problem that a startup face in one article is not possible. However, I tried to compile the five biggest problems that every startup face in the next lines of this article which will clear a picture for you about the failure and success of the startups.
As I mentioned the numbers about the emergence of the startups, one can easily understand how much fierce competition he or she has to face against their startup. Moreover, the chances are very low that you think an idea of a startup which can become successful and also have the uniqueness in it. That is why it is certain that no matter what business you want to start, you will always find the competition for it. This competition is the biggest challenge that every young entrepreneur and the young startup has to counter to reach the point where it wants to be. The best way to compete in this market is to go slow and steady. The more you remain low key, the more you survive in the market. Do not go for aggressive marketing which instead of attracting your customers, attract your competition and then they start taking steps to give you the fight. It is better to get some penetration in the market first, to make your name and good will and then come up on the big stage.
- Vendors contracts negotiations:
While establishing the business, you will need the services of different vendors. This means you should have the skills of management so you can manage many different vendors at the same time. However, for the internal work, you may also require getting any outsource services. These all things on the professional levels run on the trust. Though you would be new in the field, you go for the contractual agreements for the better communication. This slow down the whole process because every contract based on some conditions which have to be discussed first before finalizing. This is all a very slow process which will slow down your speed of operations. To counter this issue, you should work like the best coursework company UK do. They do all their business on the instant cash. Just call on the vendor get his services and pay him his fee. That’s it!
- Bad Reviews in the start:
You are not going to satisfy majority of you customers with your services or products in the start. Mishaps will happen because you are not used to it and need time to understand the things and get familiar with it. That is why there are huge chances that you will get numerous bad reviews in the start of your operations. You must not get disappointed after these bad reviews because it happens with every startup. However, you must not take it lightly too and try to avoid as many reasons of the bad reviews as possible. The only way of avoiding this issue is to acknowledge all those bad reviews and try to correct it next time. You can also compensate those reviewers in any way which can convert their bad word of mouth into good word of mouth.
- Unrealistic Expectations:
It is understand, you should try to be as rational as possible that you would have high expectations with your startup that is why you are working on it. Howeverble in your expectations. High or unrealistic expectations may not damage your operations of startup however it will hurt your feelings. Even when your business would be working fine but not as fine as per your expectations, you will try to do some adventures with it which can damage the flow of the business. That is why it is important to keep your emotional side of the brain at one side and the rational one active while working on your startup. Always analyze your business under the current circumstances and compare the growth with the past performances, not with your expectations.
- Cyber Security:
You are new to the business and vulnerable too. You have to secure your business as much as you can. For this, cyber security should be imperative. Every year thousands of business big or small get attack by the hackers, and they stole their confidential information which worth of millions. You may not have such data on your computers which would be worth of millions, but any cyber-attack can disturb your operations. Maybe it will create problems for your clients to contact or problems for you to take orders from your customers. Cyber-attack in any form is not something which you can afford in the initial stages of your business that is why you should hire a specialist person who can make your system secure.