5 challenges faced by start-up businesses

Aug 24

5 challenges faced by start-up businesses

Setting up your own business is a big decision to make, so if you’re brave enough to take the plunge and set out on your own then you want to know you’re doing the best you possibly can. Unfortunately, many small businesses don’t manage to stand the test of time, so in order to ensure that your business is one of the ones which does last, it’s important to understand the potential challenges you might face. These are the hurdles a lot of small business owners have to get over in order to find success.

Lack of planning ahead

The first thing you’ll need to do is make sure you’ve planned ahead as much as you possibly can. A surprisingly high amount of start-up businesses fail to find the success they’re capable of simply because they haven’t effectively planned, so you’ll need to look closely at factors like sales, development, staffing, skills and finance. Make sure you’ve planned thoroughly but also that your plans are flexible enough to cope with an unexpected turn or challenge.

Finding the right people

No matter what your business specialises in, there will be a certain set of skills which are imperative in order for your company to survive successfully. This means you’ll need to find the right people with the right skills to give your business the best chance of success.

Give yourself enough time to find the right staff, as replacing the wrong staff is much more time-consuming than hiring the right staff in the first place. In order to do this, you’ll need to brush up on your interview skills and make sure you’re asking the right questions.

Time management

When you own your own business, there is never enough time. At any one time, you’ll have a million and one things you could be doing, and you’re unlikely to be able to do them all yourself. In order to get around this, manage your time as effectively as possible. Make a note of which jobs require your immediate attention, which ones can be put on the back burner, and which ones can be delegated to other members of your team. It can be helpful to write a to-do list and give every task a date it must be completed by.

Stepping out of the comfort zone

After a few weeks or months, you might find your stride with a dedicated customer base and a great set of skills. However, as time goes by, it’s important not to get too comfortable with where you are. When things are going well in your business, it presents an opportunity for growth and expansion. How can you use your success in order to help your business reach new heights and get started in new areas? Over time, you’ll be able to add these new areas into the list of services your business can offer with expertise and professionalism.

Finance

Budgeting and finance are absolutely vital to the success of a start-up business. No business starts off making huge amounts of money without first building up their services and client base, so you’ll need to make sure you’re prepared to budget carefully for the first few months of your business.

There are also a lot of costs to cover when you start your own business. You’ll need to consider adding factors like equipment, employee salaries and a commercial property to your budget.

Once your business is established you may next have to consider moving or expanding your premises to accommodate growth and additional employees. At this stage you may wish to consider finance options such as bridging loans. You can find out more about commercial property bridging loans from banks, building societies and trusted providers like Glenhawk.