Challenges For New Startups

Cash Flow:

One of the most challenging issue for a startup at early stage is financial management. A large majority of startups fails because of low or no cash. A 2004 study says, almost 80 percent of small business or startups failed due to “starting out with too little money” which lead them to business downfall. Every Startup business owner should be optimistic about seeing profits. As a precaution or warning, one should take it seriously as without balanced cash flow, less sales or a market downturn can bring the business to an end before even it gains any momentum.


Team building and keeping it together is also a troublesome challenge. Recruiting the right talent for the startup itself is a problem, as it might have a huge impact on budgets as well as for the other members of existing team. Further it is also hard to retain the resources at growth stage, as almost every resource want to work with a big brand name in same industry as compare to an unknown startup for a low salary. So in a brief summery we can say, its hard to start alone, but wise to make a team with same vision and goals so that together you may make it successful.


If startup is able to find a niche market and differentiate itself from its competition, the reward will be great. Competition will be always there, if a startup think it is as unique that there is no competition than it is wrong perception or may be due to no proper research about the market. New companies will keep on coming and try to do what you do – but better and cheaper than you with great timing and better financial resources, so the key to handle the challenge of competition is simply keep an eye on rapidly changing market, existing and new competitors and last but not least is continuous fine tuning of your idea or business.

Long Term Value:

Biggest challenge for startups is creating a long term value for the idea. To make your startup successful and sustainable you must think about its long term value before starting, many starups fail in few months after launch, no matter how great the idea is, and how professionally you execute it, you must be very much sure about the life of your idea before launch. Deep research on your niche market, customer needs, available solutions and eye on changing demand can be very helpful to determine the long term value of your startup.


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