SOME OF THE CHALLENGES FACED BY STARTUP AND SMALL BUSINESS OWNERS

According to the Global Business Report, 90% of startup do not survive the first 3 months, and 95% do not survive the first year. These figures got me asking some questions, and I have decided to share with you what I feel are the problems startups fail within their first trimester.

1.     Funds- Fund is a major part of a business which you can’t overemphasize. Major of startups fail because they can’t access funds. You need money to run a company. Unless you’re remarkably lucky and the cash flows in straight away from sales or investors, you will be in trouble.

2.      Lack of organization- This a crucial part of any business. As Mentor always says “Randomness is a kiss of death”. Small Business and startup launch without having a proper organizational structure, procedures of doing things, as such they overcrowd themselves and focus all their energy doing the wrong thing. Organization gives you a clear protocol for doing things.

3.      Selfishness- Most startup founders are selfish, in the sense that they want the company to be about them alone, and are always scared of sharing their ideas with other people. Jack Ma the richest man in China. started his company Ali Baba with 18 people as co-founders. 75% of the top businesses in Silicon Valley were co-founder by 2 or more people. What I’m trying to emphasize is that you should share your vision with someone, and work together so they can help you bring it to fulfillment.

4.      Hiring the wrong people- Certain skills are crucial not only for your business to survive, but also to grow. Knowing the exact skills needed – and how to get those essential people – may determine how well your startup thrives. Delays in finding the right personnel will not only eat up valuable time but also lead to severe bottlenecks. You may also have hired the wrong people, and their deficiencies may be more apparent as a startup grows, especially if they are in the wrong roles.

5.      Competitors- There’s no autonomy in the industry you are going too, therefore it won’t be easy despite your product or services being great, it’s a crowded marketplace. New rivals may have altered the playing pitch, so having the right strategy, or being able to think on your feet quickly and adapting to the new reality will define your success or failure.

6.      Lack of guidance- You may have a great product/idea, but lack the necessary guidance, market experience, and knowledge to move a stage further. That’s where a mentor comes in, with the wisdom and confidence to help you clear those roadblocks that are holding your startup back. Mentors can also help you strategize better. Get yourself a mentor. What if you can’t meet your physically because of geography or the fact that they are big goons are you are just starting- then read their books, listening to their interview, follow them on social media. The internet has made it easy to cut across borders and bring us closer than ever.