No doubt you’ve heard the statistic that nine out of 10 startup businesses will eventually fail. Well, perhaps, more importantly, you’d like to know that in 2017, UK SMEs had a combined turnover of £1.9 trillion. This shows that there is plenty of room for success, and there are opportunities for all kinds of startups to grow, thrive, and go on to support the UK economy. To help give you the best chance of contributing to this figure, here are the four biggest challenges your startup will have to overcome.
1. Sourcing the right talent
At the end of the day, your business is only as important as the employees within it, so you need to make sure you hire the right individuals. Those employees that succeed are not only talented in their field but also possess unique attributes, such as creative thinking, decisive decision making and leadership. These skills are what your company needs to help it thrive and grow rapidly.
2. Raising finance
Getting together a suitable upfront investment that will help see your business through the first 12 to 24 months is crucial. Founders are often unable to raise enough money to gain a market share and tide the company over during these initially draining two years in business. Well, the good news is that there are multiple ways to raise finance, such as angel investors, crowdfunding, Merchant Funding and grants.
3. Evolving technology
The fast rate at which technology evolves can be both a benefit and a hindrance to any new start-up. By failing to stay up to date with the latest advancements, you give your better-entrenched competitors the edge, and let them succeed while you fail. Be sure to make use of all affordable technologies, such as the latest card payment technology, to ensure your business is streamlined and able to accept fast and secure card payments.
Effectively marketing your company means placing careful attention on what type of brand you want to represent. Too many start-ups fail to create a brand that is unique and targeted to their exact audience. Instead, you need to drill down into what sort of brand you should portray, and then hone your marketing strategy towards the channels that best reach your target customer.
There are a number of reasons why a startup could fail, and these exact challenges will come down to the nature of your business. As of 2017, there are more than 5.7 million private businesses in existence. Allowing yourself the best chances of success against such competition means thinking critically about what your competition is doing, and why other start-ups may have failed before you. Preparing for the challenges, coupled with perseverance, is the best way to make it past those first few years of trading.