Are you contemplating launching a startup to pursue your passion but worried about possibly failing? Prepare for the rocky road ahead by understanding these five hurdles you will have to overcome:
Poor Marketing.
Of course as a startup, you want to get your brand out there to as many people as possible to build awareness, but that can end up costing you a pretty penny. Don’t just choose the big marketing channels because you feel like you should. Take time to research your brand’s audience and find out where they’re more likely to go. Remember as you create your product line and promotional materials to think of your audience’s needs and preferences, and not your own. As an entrepreneur, it’s easy to confuse the two, but essential you learn how to separate them.
Competition.
Entrepreneurs should study their competitors thoroughly. Analyze their strengths and weaknesses, and identify any gaps in the market. Use your company to close this gap for consumers by creating a niche within a larger market. Or, study your own product and find a way to differentiate it from your competitors. Are you made in the USA while your competitors outsource manufacturing? Play this fact up to grow your market share. Whatever you do, never be oblivious to what your competitors are doing in the industry.
Building A Team.
The needs of startups will constantly change as your company grows, which can make hiring employees difficult. The set of skills you need one year will probably shift during the next. So how do you hire a team to help make your startup a success? Think long term when hiring employees. Look for employees that have basic skills and can be molded as they grow with your company. If you do make a poor hiring choice, remember to face all tough decisions with a focus on the company’s goals and missions, and put your own feelings aside.
3…2…1…Launch!
The timing of your startup’s launch must be perfect. If you launch too late, you risk competitors beating you to the punch, but too early and you risk not being prepared and being unable to fulfill orders. Create a plan upfront and track your progress as you work towards the launch date. Don’t be afraid to push back the launch if your company is not ready! You only get one shot at a good impression, so you don’t want to be introduced to customers before everything is in place.
Money, money, money.
No matter the industry you’re in, money will inevitably become a hurdle for your startup to overcome. Do you have investors on speed dial? If so, carefully craft your pitch to show them your long-term plan for success. Bring in something concrete like a product prototype or let them experience your service offering firsthand. Not sure of any investors to call on? Consider alternative financing sources, like Kickstarter or Indiegogo.
The biggest hurdle of all to overcome? Lack of leadership. Discover your strengths and weaknesses as a leader with this free assessment.
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