Agree — the process of launching a startup would not be so interesting if it were not for the obstacles and challenges that the entrepreneur has to solve. It may be this non-boring way of life that pushes many people to grow their businesses. Nevertheless, the novice starter risks facing many problems at the start of the project. It is desirable to know about them in advance to be well prepared.
So, what are the key difficulties that may hinder a new starter?
Business and risk are synonymous. As statistics show, about 90% of startups fail in the first year of their existence. There is always a certain amount of risk. No one can give a 100% guarantee that your business will be successful. No matter how carefully you make miscalculations, no matter how much money you invest, the danger of losing investments will be present all the time.
Before you open your company, you need to thoroughly research your legal rights and responsibilities and check that you have the necessary documentation. For this, it is better to consult with a specialist. In addition, it is worth studying the legal framework and regulations relating to your business. Remember: ignorance of the law does not exempt you from responsibility. Otherwise, you run the risk of creating unnecessary problems for yourself.
The entrepreneur and the employee have completely different lifestyles. If the latter has days off, the entrepreneur’s schedule is irregular. It is not always possible to devote time to yourself, your family, and your hobbies on the weekends. You need to be ready for this and accept the new, interesting, fast-paced, and a little unstable life.
To find qualified personnel today is not so easy. The aspiring entrepreneur must decide on all the requirements for a future candidate and look for them until the right person shows up. Your employees are the engine of your business. It would help if you were sure that they wouldn’t let you down and that they performed their duties conscientiously and professionally. In your search for employees, you will find it very difficult to find someone who works to the best of their ability.
An entrepreneur’s income cannot be stable. Every month it will be different. It is better to prepare yourself and your budget for this in advance. In business, there is no fixed salary or fixed wage. The level of earnings depends only on you. Even if things are going well, it does not mean that you will receive a high and stable profit every month.
Problems with partners, contractors, and customers are not excluded. Therefore, pay due attention to contracts. Be sure to discuss the rights and obligations of all parties, agree on terms and forms of payment. This way, you can protect yourself from unnecessary trouble.
And now, let’s look at some tips on how to make a successful startup.
The entrepreneur must be decisive, goal-oriented, and executive. People with negative character traits can also be founders and managers of successful companies.
When it is difficult to choose between several solutions to one problem, you should concentrate on the one that is done faster. If unsuccessful, you can immediately move on to another solution.
Until a company has customers, startup founders can’t have confidence that they are creating a useful product. You need to find at least ten people in the world who will use your product to know that you are on the right track.
Take advantage of the opportunities that crypto-investors offer. But here, you need to understand — the more cryptocurrency you collect, the weaker the motivation and the higher the chances of spending excessive money on things unnecessary to the business.
Forget about equality. If one business creator owns 51% of the company and the other owns 49%, it is guaranteed that the situation will not come to a standstill if there are complex issues and disputes. It is better to use startup consulting services and pay money for the services than to give away company shares.
Don’t be afraid to discuss the idea and product with other people. Based on the feedback, you can get a feel for what you need. Otherwise, there’s a risk of getting stuck in the captivity of your misconceptions. In the early stages of the product, don’t ask the audience what features are needed. Ask what users are trying to do and what problem to solve. By solving contrived issues, you lose years of your life.
Working on a product alone is hundreds of times harder than even with a not-so-efficient team. The biggest problem for loners is a lack of moral support. Relatives don’t count.
The sign of the company’s future success is the presence of a strong team, even if it is two people. And they should know each other. There will be plenty of critical moments in the company’s life when you need a shoulder to lean on.
If a startup has competitors, this only confirms the correctness of the chosen path. If someone else creates a similar product, imagine a treadmill on a hundred-meter race. When someone else is running next to you, there’s nothing to do but run faster. But even if you are slower than your competitor, you can find your thing, and then the treadmills will diverge. There are many niches, and you have to find your own.
Just like in big sports, it’s not the strongest that wins, but the hardest. So don’t stop under any circumstances. You may encounter severe trials along the way. Take failures as a lesson, draw conclusions from them. Keep moving forward to achieve your goal.
In the early stages, it is normal. It would help if you tried to do all the work yourself. For example, deliver packages by yourself or be the first consumer. You are your feedback.
Don’t rush to hire people at the startup, especially when the first investment has come in. Only hire people you trust and who are stronger than you. It’s the backbone of the company that will employ the same principles. It would help if you also looked for those who are passionate and eager. People willing to work strictly from 9:00 to 17:00 are unlikely to make themselves a success, much less your company.
You can’t 100% guess the idea, the implementation of which will make your company successful. It has to be something that bothers you, and there are no solutions on the market.
You can set any price you want in the early stages if you doubt how much to ask for a service or product. As it grows, it can always be adjusted in the right direction.
When you don’t want to do routine tasks every time, you need to find ways and workarounds to solve them once and for all. A great way is to use the services of a consulting company and entrust routine tasks to it.
Creating your own business comes with many challenges, but it’s worth it. All aspiring startups go through thousands of difficulties, and in the end, they succeed. Do not be afraid to take action and follow the examples of already established entrepreneurs.