Starting a business is a big step in any entrepreneurs life, equally important is maintaining the same. According to the U.S bureau of Labour statistics, about 20% of the businesses fail by the end of their first year. During the infancy stage, the startup faces more problems resulting in a shut down. Here are some of the most common challenges that every startup faces at the initial stage,
Handling business accounts and taxes is not an easy task. This is one of the major challenges ever small businesses face. I was really thrilled while starting Treksters but later realized about the money part... getting investors is not easy. Another herculean task was money management. Vimal Raj, founder of treksters said. He also added that, every entrepreneur must plan, about their expenses, savings and investments. You will need to hire someone professional to handle these. Running out of cash will make your business impossible to run.
Finding customers is not an easy task especially when you are not a household name. Not only small businesses but many big companies like Apple, MacDonalds keep looking for new customers. A startup never has enough customers, keep this in mind and never stop looking for customers. Sometimes small businesses depend upon the two-three clients they have. But dont rely on them. You never know when they might change and go for some other companies. Keep increasing your customer base. Lakshya Fomra, Founder of PostMoji said.
One of the main reasons why businessmen plan to expand their business is to gain profit. But expecting profit at the starting stage can be challenging. You need to be innovative inorder to increase profit. You cannot expect to make huge profit at the beginning. At times, you have to spend money from your pocket. You have to wait and be patient. Raj said.
No matter in which field you are, you need to develop connections. Its no secret in business world too. Initially with the help of some friends we made few connections. Networking is very important for any startup specially at its infancy. But finding someone is not easy. Small business owners spend half of their time in getting their work done, and they dont have much time to develop connections. And without connections you cannot survive in this competitive field.
Hiring can be one of the biggest challenges that almost all small businesses have to face. You have to spend money on your employees and if you hire someone not fit for the role, it might result in unnecessary expenses. Thats why you have to find and hire the interested candidates, Fomra said.
Ever wondered how startups like Flipkart, Oyo became household names? These companies had their own strategies. You need to spread the word about your brand and build a great reputation. Vimal also said that, We are lucky to have facebook, Instagram, Twitter to our rescue. I use these platforms to promote my business. I will suggest that make the best use of social media that are available to you. Creating awareness about your brand must be on top of your priority list.
You have 24 hours in a day and its not easy to know on which work one should focus and which should be eliminated as everything seems important. Try to focus and balance your work. Try to identify the essentials and eliminate the rest.
In a survey by the Chamber for Commerce and Industry Queensland (CCIQ), it was found that the biggest problems for small businesses owners can be solved by digital products, tools, and innovation. Besides this, there are dozens of issues. You can take actions on these and fix these problems with patience and hard-work.