A large number of startups are emerging every day like never before. According to statistical reports, there are more than 150 million startups in the world. On average, 137,000 startups are launched every day. The competition between startups is fierce. It is more and more difficult for startups to survive. 70% of startups will fail between years two and five. If you want to start your own business, you must know what common challenges startups face.
Cash Flow Issues
Cash flow is crucial for a startup’s survival. Before launching a business, startup owners may need capital for rent, office equipment, and employee payroll. When the company starts to increase revenue, expenditures should also rise. Cash flow is required for customer service and product development. Some startup owners find it difficult to manage their finances and allocate capital wisely. When facing this problem, business owners can ask help from financial consultancy firms or experienced people. They can create a spending plan under their guidance, set up an appropriate budget for each department, and every business activity.
Hiring Unsuitable Employees
The hiring process for a new company is always difficult. It costs a lot of time and energy that could be spent on other aspects of the business. Hiring someone who is not suitable for a specific role will hurt a company’s rollout of services and products. Therefore, startups need to hire the right people. To ensure company growth, business owners should hire someone whose skill set perfectly matches the company’s needs. Besides, make sure that the candidate can cooperate well with the team. It is crucial for team synergy and the company’s cultural development.
Lack of Customer Trust
Customers are one of the essential parts of every company. However, startups usually don’t have a group of loyal customers. Some business owners find it difficult to let new customers believe how good their products and services are. Startups need to create a marketing plan to increase their brand awareness gradually. They also should implement a customer-centric working philosophy. Improve employee customer service skills to let customers have a great experience interacting with the company. A loyal and satisfied customer base can help startups survive in fierce competition.