BASIC START UP CHALLENGES
EXPLAIN DIFFERENTEXECUTION CHALLENGES FACED BY A NEW ENTERPRISE.
EXECUTION CHALLENGES FACED BY A NEW ENTERPRISE
Startup companies are newly born companies which struggle for
existence.These entities are mostly formed based on brilliant ideas and
grow to succeed. Every newly setup enterprise have to face some
challenges to make theircompanyor enterprise in existence. Let’s discuss
about these challenges one by one
The challenges faced by a new enterprise are following:
1.Financial challenges :
first challenge faced by the new setup enterprise is raising capital .There
is more to raising capital than just simply asking for money. Most
investors want to invest in already established businesses with minimal
risk and they want to be sure that they get returns for the risk they took.
Most brilliant business ideas never scale through the venture capital
stage because the entrepreneur is either not prepared or lacks what it
takes to raise the needed capital. To overcome the challenge of raising
capital, an entrepreneur must develop the ability to sell their idea and
vision to potential investors.. In the game of raising capital, an
entrepreneurmust havea good story to tell; backed by a strong business
plan and good persuasion skills.
All newly setup enterprise required some initial investment for keeping
their business in existence.Challenge is that from where and how
enterprise going to raise capital.
2.Human resources :
Startups normally start with one founder and/or some cofounders. As
time goes by, founder needs more experts to develop the prototype,
MVP, etc. Then, he/she has to negotiate with people, make team and
finally hire employees. This process is so critical to succeed and if the
founder lacks enough knowledge of the field,the startup might fail due to
human resource management issues.As an entrepreneur bound to have
strengths and weaknesses. That is the more reason an entrepreneur
needs a business team to cover up or compliment their weaknesses. A
team is a necessity for building a successful business. It s the duty of an
entrepreneur to make sure that their team sees the future as the
entrepreneur see. They must believe in possibilities and must also be
passionate about making that possibility a reality. If they can t grasp the
vision,if they can t see the future with business,then theyare not worthy
being business team. An efficient strategic business team should
comprise as banker, financial adviser, accountant, attorney or legal
adviser and any other specialist that will be of tremendous impact to the
That’s why for an successful startup human resource (a team ) is very
important for compensate the weakness of each other and comes
together as the strength of the enterprise.
3.Environmental element :
Many startups fail due to lack of attention to environmental elements,
such as the existing trends, limitations in the markets, legal issues, etc.
While a supportive environment facilitates the success of startups, a
maleficent one could result is failure. Lacking information in marketing
systems. In India, each state is interested in culture, food, and customs,
language, outfit, etc. ignorance of which may lead to end up in failure.
Change in trends is also a big challenge an entrepreneur must be
prepared for when starting a small business. Trends have made and
broken lot of businesses.profitable businesses that have been wiped out
by slight industrial changes and trends. A typical example is the Dot com
trend, where many established industrial based businesses were wiped
out by new web based dot com companies. Seasoned entrepreneurs
know that trend is a friend and are always willing to swiftly adjust their
business to the current trend.
4. Legitimate Mentoring :
You may have a great product or idea, but lack the necessary guidance,
market experience, or knowledge to take it to the next level.That’s where
a mentor comes in, with the wisdom and confidence to help you clear
those roadblocks that are holdingyour startup back. Having the business
sharpness dependably keeps one a stage in front of others. This is,
maybe, significantly more serious issue than the gathering of financing.
Cash can’t concede you vision and shrewdness, however, its essential for
different things. So watchful and little strides at once can enable you to
assemble energy in the end over the long haul. Ability, persistence, and
strategies are the 3 aspects to remember.
5. Management :
One thing startups definitely can’t afford is ineffective management. A
management team that worked well in the initial stages may find itself
strugglingas the startup expands,as they’retested by anythingfrom poor
sales to market conditions.
As the business starts to take shape, it requires every bit of awareness to
sustain the flow. Indeed, even from the beginning, an unmistakable
outline ought to be as a top priorityto maintain a strategic distance from
any irregularity in the inflow which can enhance itself medium-term to
make things wild.
It’s amazing how many startups falter because they “forgot” to plan. Or
maybe they really did plan, but they just didn’t cover all the bases.Key
areas like sales, development,staffing,skills shortage, and funding aren’t
afterthoughts.Theyshould all be a part of your business plan right from
the beginning.Not onlythat,but you need to plan for the things you can’t
plan for, too.That is, even if you can’t prepare for every eventuality, you
need to know what you’re going to do when (not if) events take an
Poor or mismanagement as regard to planning and timing is also a
challenge faced by the newly setup enterprise because of which the
chances of failure increases.
6. Competitors :
Competitionis the next challenge an entrepreneurwill face when starting
a business.Most individuals see competition as a plague but competition
as a good challenge.Competitionis a benchmarkfor creativity,the main
engine that stimulates innovationand production ofqualityproducts at
great prices. Without competition,there will be no innovation and
without innovation,the world will be stagnant.
No matter how great your products orservices are, it’s a crowded
marketplace.And it’s growing all the time: you won’t be the new kid on
the blockfor long,and new rivals can quicklyalter the playingfield.
So you need to put yourself in a potential customer’s place and see how
you stack up.What makes yourcompanydifferent? What makes your
products special?What makes your brand unique?Whywould someone
choose you over your competitors?When it comes to your competitors,
you need to hit the right balance between “us” and “them.” Don’t define
yourselfsolelyin relation to yourcompetitors: you need to be confident
about what you’re bringingto the table, too.
But you also need to keep youreye on the competition and the (rapidly-
changing) landscape.Havingthe right strategy, being able to thinkon
your feet, and being able to adapt to the new realitywill define your
success — or failure.
As we have discuss the major challenges that faced by almost each and
every start up enterprise the only difference between the successful
enterprise and the enterprise who fails is they treated these challenges in
different manners those who are able enough to tackle these challenges
are become successful rest become failure.
The most important challenges faced by new entrepreneurs are financial,
human resource, mentoring, management, competitors, environment.
These challenges are not the only challenges faced by the new enterprise
but these are some major and most important challenges that almost
every start up faced.
To make an startup successful we must keep these challenges in our mind
and work toward facing this challenges.
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