Small & Startup Companies

TOP 3

Here is a list of the top 3 challenges that your startup will face and how you manage them will go a long way in determining whether your startup will succeed or fail

01.

Funding

The big issue comes first. Funding remains one of the major challenges that emerging startups face. It's a really dicey issue in the sense that every investor prefers to put their money somewhere they know it will be safest. Hence, they usually invest their money in already established and successful startups. Logical as it is for the investors, it also limits the number of successful startups that are available today. Truly, there are some startups today that if given the appropriate funds, will go on to become serious trailblazers in their fields.

02.

Lack of Innovation

The desire to build startups and make money quickly and easily has sadly created a few norms in our minds. This said, most startups are simply 'knock offs' of old, more successful ones. The innovation is extremely lacking in entrepreneurs today. When investors and clients see these, they become reluctant to invest as they generally fail to see the difference between these new startups and old ones.

03.

Unfeasible Goals

It's always helpful and advantageous to set goals for your business. Goals give your business a direction, provide a means of measuring your business' growth over time, act as a means to assess the success (or otherwise) of your business and serve as a method of pitting your business against other businesses in your fields.

TOP 3

Here is a list of the top 3 challenges that your startup will face and how you manage them will go a long way in determining whether your startup will succeed or fail

01.

Funding

02.

Lack of Innovation

03.

Unfeasible Goals

Stages of the Startup

Idea

The Initial stage of startup life cycle is when startup is just a thought or an idea. This is the very conception or birth of a new startup.

Barriers to Break: pursue one niche opportunity
Focus On: business opportunity
Funding Sources

Startup

Startup is born and now exists legally. Services or products are in production.

Choice right Software approach
Focus On: tracking and conserving cash flow
Funding Sources: Owner, family, friends, suppliers, banks, customers and grants

Growth

Startup has made it through the toddler years and is now a child. Customers and revenues are increasing with many new opportunities and issues.

Barriers to Break: еffective management and a new business plan are required
Focus On: better accounting and management systems will have to be setup

Established

Startup has now matured into a thriving company with a place in the market and loyal customers. Startup life has become more routine.

Focus On: improvement and productivity
Barriers to Break: Stay focused on the bigger view

Expansion

This life cycle is characterized by a new period of growth into new markets and distribution channels. This stage is often the choice of the startup owner to gain a larger market share and find new revenue and profit channels.

Barriers to Break: planning and research of an initial or start-up stage
Funding Sources: investors and government, and new investors and partners

Mature

Year over year sales and profits has to be stable, however competition remains fierce. Eventually sales start to fall off and a decision is needed whether to exit or expand the company.

Barriers to Break: how long the startup can support a negative cash flow
Focus On: Cutting costs and find ways to sustain cash flow