Startup Hurdles are the result of the mindset of the entrepreneurs. Whilst you are commencing a startup, there may be so many hurdles you want to overcome. Limitations want overcoming, challenges need resolving. As a startup entrepreneur, there is so much stress and weight in your shoulders. The first few steps are critical in constructing the muse on your business. It is very comprehensible to experience overwhelmed with such hurdles. The key is to make rational selections and to pace you. There are obvious hurdles each startup's faces, relying on how an entrepreneur copes with them will determine the success of the startup.
“You never fail until you stop trying.” This sentence quoted by Albert Einstein motivates every individual to persist in reaching their goals with unlimited efforts and dedication. A startup is like a race which comes with different hurdles. So one has to always have the strength to dust themselves up in every fall they face in order to continue the race. If one is not ready to FALL, one is not ready to pass the HURDLE.
Startup is a vision to change the community rather than a money printing business. When someone opens a shoe shop that is not a startup. A startup must have uniqueness in itself to bring changes in the thoughts, culture and patterns of an individual and the community.
Startup Hurdles- RedFlags
I. Most start-ups in India are me-too poor imitation of successful ventures elsewhere. (Nil?) "Game Chargers’
II. Live challenges and contests for new ideas and innovations are generally low. The bitter truth is that disruptive technology does not exist at all.
III. Definition of startup is not clear to most entrepreneurs. It is so because they are focused on money making business rather than providing a perfect framework to their idea.
Consequences of the above entrepreneurial mindset
I. Most companies will go to the walls in no longer than 100 days. II. They will eventually lose a lot of money in the early phase of their start-up and Venture Capitals will become more selective in future.
Startup Hurdle – Mindset of Gen Y Entrepreneurs
I. In the first place, a technological start-up always needs proper knowledge of technology rather than anything else. Without having the required domain knowledge they dive into the ocean of technology. In which, eventually they would have to drown. II. The main problem with Gen Y Entrepreneurs is that their business idea is based on their personal experience. It is neither a concluded vision of experiences nor tested idea in the market. III. Improper market size, end of expansion. IV. The business model is based on the above data.
- High cash burn rate.
- No proper business model.
- No expandable market size.
They become focused on generating money rather than solving problems. The real startup solves social problem rather than focusing in cash flow, money making business. Which can have long term vision and goals to make changes in society, expansion, branding etc.
Startup Hurdle- Mindset on Business plan i. They do make a business plan but pay little attention to the financial plan and the assumptions on which that are made are not clear at all. ii. The business plan is made only to pitch to the mentors. There should be a different business plan, one for investors which shows financial data and another easy one to be understood by the user.
Startup Hurdles – Funding Misnomer
i. They pitch their idea on money while missing out on the more important pitch: Why should investors invest their money? Making no plans of proper pitch leads them to failure in getting funds for their startup. ii. They cannot differentiate between debt and equity. Many times, while the need is for debt, they think of getting investing. Having no knowledge of debt and equity while getting investment stands as a great hurdle to every startup. iii. They think that investors are interested in their business without understanding the fact that an investor is only focusing on exit at a time with X times the returns. iv. They love their business and think that the investor would also love the same. v. Mind set of investors at the initial phase and the mind set of investors at a growing stage are different seeing from different perspectives.
HURDLES OF STARTUP AND SOLUTIONS
Many times startups focus so much on acquiring new customers that they forget the gist of their innovation. Cash flow will either make or break the business. In startups, there will always be ups and downs. The success will be entirely dependent on how you manage the downs and evaluate the ups.
Here are the major five hurdles every startup faces and how you can avoid them.
Prepare for the outcome There’s no doubt that you would prepare for the worst that might come. Likewise you should also prepare for the outcome that you are working towards and set clear and reasonable expectations. Make sure you have a well defined plan for growth. If you have a limited number of products, make sure your customers know there may be delays if supplies run out.
Acquiring New Customers Even if you’ve built the best product/ service in the world, you won’t last very long if you can’t get it in front of your ideal customer. For small businesses, Facebook Ads are a great place to start. By Google Ads massive user base and their specific targeting options make it much easier to attract the target audience.
Raising Capital too Early The majority of startups think they need to raise large sums of money in the early stage in order to be successful.
Building a strong Team Chemistry Talent may look good on paper, but if it doesn't fit well with the rest of your organization, it can lead to the downfall of your business. It is said that choosing a business partner is like getting married to the person. Not only the thoughts but every dos and don’ts of your partner should bring positive vibes in you. When the team has good emotional understanding and mutual cooperation, they can withstand any storm that comes on the way of their journey.
Getting paid on Time Income will represent the moment of truth your business, no doubt. It's completely basic that you keep steady over your invoicing so you can keep a consistent, and ideally positive, income. Your charging is to utilize a web based invoicing arrangement. Your prosperity will be altogether subject to how you deal with the downs and assess the ups.
Four Startup Hurdles Every Founder Needs to Overcome In order to Achieve Rapid Growth
Overseeing and getting ready for development is one of the most vital difficulties confronting a startup author. Every Startup is one of a kind; many face comparative impediments that shield them from opening a repeatable development process at an opportune time.
a. Mastering your finances Startup won’t be able to grow its Pocket money / family, won't have the financial resources to develop products and services, hire the best talent and so on.
b. Time Management Your startup won’t be able to grow quickly enough If you’re trying to do everything yourself. Hiring a sales director and PR manager early on was a lifesaver that gave us more time to focus on perfecting our product.
c. The Right Partners Referrals and use your own networks to get a head start on the hiring process. Hiring for an area that you don’t have much about, be sure to have someone involved in the process that can provide more informed input.
d. Company Culture Employees believe a distinct workplace culture is important to business success. “Facebook did such a good job with company culture. I had managers and higher-ups that gave me a lot of freedom and trust, which I carried over to my team now’’.
Startup Hurdles
Obstacles need overcoming, challenges need resolving. As a startup entrepreneur there is so much pressure and weight on your shoulders.
- Assess the challenges that face you and analyze the time, budget and resources required to overcome such hurdles.
- A hurdle you can overcome on your own or if you require additional help.
- Research and do your homework on how to solve the challenges.
- Stick to the facts rather than emotions.
- Create a backup plan.
Some will invest so much time and money in such challenges that other aspects of the business are left untouched.
1) Uncertainty You should be sure that market research doesn't know if your market research is accurate. What about the competitors?
2) Instability Startups are roller coaster rides.
3) Responsibility Being an entrepreneur means investing yourself in a venture in ways you’ve never experienced. Making from naming the company to closing your first client contract, will affect your business bottom line. As your business grows, this responsibility will grow.
4) Balance It’s your idea – your baby – and it’s natural to put as much time as you can into it.
5) Loneliness Loneliness is a bigger problem in the entrepreneurial world than most people realize. Showing your anxieties to your team members could unsettle them and destabilize your company. Yet not allow them to interfere with yours plans or your goals. You have to be the master of your own battle and count loneliness as a part of your startup journey.
Big Hurdles a small Business owner faces (and How to Get Over Them)
As an entrepreneur, you continually experience leaps that vibe special. Business enterprise regularly includes a few disappointments and exercises learned before encountering your first win. How you react to these obstacles directly affects the achievement or disappointment of your business. Normal obstacles we as a whole face and how to conquer them.
- Having Access to Startup Capital
Bootstrapping is not a bad option, as it allows you to grow your business at a manageable rate without taking on debt. Retaining 100 per cent ownership of your business and remaining as debt-free as possible will benefit you in the long run.
- Keeping Up with Demand
Social media has the viral- power to take a new business from obscurity to household name overnight. It really becomes a big challenge for any startup to meet every expectation of customers. Keeping up with each and every demand has a lot to do with time management as well. Having limited finance and resources can sometimes put the small business owners in big trouble if the demand becomes more than the resources.
Startup Hurdles- Conclusion
There are consistently exemptions to the above experience of the tutors. some of the fruitful startup Entrepreneurs, including gen Y, are full grown and very much grounded and have interchange plans when things fall flat . The prepared, likewise as Gen 'Y' test water before they plunge profound. They swim in shallow waters and get familiar with the subtle strategies and rapidly make changes to their unique plans. they're the jealousy of wannabe business people who think making progress during a startup is cake walk.
Some of these obstacles lead to the eventual deadline of the business. Written By : Dibya Guragain