6 Growth Barriers Most Entrepreneur Startups Don’t See Coming
Running a successful business requires the input of a creative and committed mind. New businesses meet many challenges that either strengthens the way they operate or make them crumble. While there are inevitable obstacles that you cannot evade, there are some barriers that many startups fail to see coming.
You must fully prepare yourself for any challenge that comes your way and tackle the problem well to avoid bringing down your business. Your start-up may be doing well today, but tomorrow things may change and find you struggling against continuous losses. A lot of big companies that looked unshakable have gone down due to lack of proper preparedness to the unseen challenges.
Some of the barriers that many start-ups do not see coming are:
1. Early desire to reach more markets
Although extending your business to cover more geographical area is good for business to maximize on profit, it may lead to crumbling of your business venture. Expanding your new business will require capital, financing, manpower and a lot of planning. Managing the business will become difficult, and expenses will increase. It’s good to give time for the business to sprout and establish a stable customer base before thinking of extending your firm to cover a larger geographical area. You will experience challenges of managing a bigger team, recruiting more workers and developing talents.
2. Business management gets more expensive
Your start-up venture will be doing just fine until you start experiencing management pressure. If it’s a sole proprietorship, you will find it difficult to run the business all by yourself. When the business is taking its course, your initial team could handle customer support more effectively. However, an expanding business will require professional and highly experienced staff. The need for more staff, managers, and business partners will make you spend more money. The pace of the business will be slowed down by the new challenges and coordinating remote offices will become more problematic. Satisfying an increasing customer base that has great experience will need more time and commitment.
3. Stiff business Competition
As the business gains momentum, other providers who offer similar service and goods start coming up. While this may not be seen while starting your business venture, it’s something that you need to be prepared for. Other people will envy the success of your business and begin to offer competing services. Your customer base may go down slowing down the pace of your business. There is plenty of capital available to start a business for entrepreneurs and the entry is quite low. You will also incur frequent and expensive marketing when competitors increase in the market.
4. Price reduction
Your revenue will start reducing once your loyal customers start caring about price. The reduction will also be fueled by competitors who offer lower prices hence dragging your customers from your into their side. You may find your business making losses continuously when prices reduce while expenses and legal issues escalate. If you can manage to get a niche market and strategically set your business unique, you can easily overcome price reduction that may be fueled by unhealthy competition. A good number of customers will care more about quality than price.
5. Keeping up with changing market needs
Many businesses have gone low after failing to keep up with new trends and fulfilling new customer expectations. It requires creativity and embracing of new technologies to keep your business refined. New start-ups have to remain relevant by offering not only that which is up to date but also discover a new trend in the business world. A lot of successful and bigwig businesses have been knocked by small industrial changes and trends. You will find yourself facing new problems of customer satisfaction, and if you cannot satisfy your market, you will find your customers to other providers.
6. Problem-solving skills
As your business is growing into new levels, critical issues will pop more often requiring you to make professional problem-solving skills. Legal issues, media, public relations and internal issues will come up as your business is growing and you will be expected to make serious decisions that will define the future of the business venture. Start-up businesses will try to solve many problems and, therefore, bringing many solutions instead of directing towards one particular issue. This results to a start-up that has lost focus and a blurred business image.
You must seek new opportunities and innovative ideas to shape your business towards the right path. Relaxing after your entrepreneurial venture establishes reasonable revenue and customer base is suicidal for your business and career. A good entrepreneur knows better that the key to a long-term company growth is by keeping the firm scaling high all the time through the establishment of a continuous inventive practice.
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