A great question that hovers around the mind of every Start Up enthusiast. Many business strugglers name Start Ups as a land of problems - I mean a quantified amount of problems. Either you are already in a business or planning to jump into the land of unseen potential. It’s all about a journey of uncertainty, travelling a distance less travelled or untraveled – It’s Entrepreneurship.
But let’s understand Top 5 problems that each of the startup encounters:
1. Business model Validation: What we think while modeling a business or in an excel sheet, might not sync while we get down to the ground. A major quantum of the problem is caused due to lack of proper validation of the idea. A pen & paper B- model might not get accepted by the customer thus creating many problems. A sample study of the model with the target market is advisable before dropping ourselves in the market.
2. Competition: A new start up is always a kid in the land of huge, bully filled playground. Rival companies that are already in service in similar market to yours do have a competitive advantage. Their presence in the market for a longer time, high figure in market share, brand loyalty, intense market knowledge & degree of market acceptance makes life difficult for new start ups. But a new start up with a base of disruptive innovation will always have an edge over the older players.
3. Lack of Funding: Majority don’t start a business stating that funding is a big problem. But one won’t realize that we start a business because we don’t have money - it’s quite funny isn’t it?? But the fact is we can’t make money unless we have some money at the beginning. Financial risk plays a huge part in small business, ensuring a constant cash flow to cover up the running cost.
4. Acceptance from customers: Initially when your product/service is unknown to the public, the acceptance level of a new entity is a question at consumers’ level. Pushing out the first plot of services, bringing the first set of target customers, converting the prospects to a happy consumer became very difficult at the initial days. However all these are temporary as long as you have tested a sustainable product.
5. Unavailability of previous data: Business decisions are often data driven and for a new business not having adequate data set keep them in the face of dilemma. Launching a new concept in the market or even for the business founders themselves with little knowledge of the Industry can be extremely hard to plan. But for a smart guy, we have our end customers to make the things done.
Someone said, there are two important days in your life. One, the day you are born, and the other – When your realize Why you have born. Similarly if you are very clear with the solutions that you are offering to the society, these problems are just a DOT.