Being a startup founder is not for the weak. It’s a constant roller coaster ride of highs and lows, and you never really know what’s going to happen next. It’s a tough gig, but it’s also an incredibly rewarding one. If you can manage to overcome the challenges that all startups face, then there’s no telling how far you can go. Here are three of the most common ones, and some tips on how to deal with them.
Money is the lifeblood of any startup. Without it, you simply won’t be able to survive, let alone thrive. The tough part is that raising capital is not always easy, especially for first-time founders.
It can be a long and arduous process, but there are a few things you can do to increase your chances of success:
Real estate can be a great way to raise capital for your startup. It’s a relatively safe and secure investment, and there are plenty of ways to make money from it; such as through a sale leaseback arrangement, or by refinancing and taking out a higher loan-to-value mortgage.
Angel investors are high net worth individuals who invest their own money in early-stage startups. They tend to be more risk-averse than venture capitalists, but they can still be a great source of funding if you can pitch your business effectively.
Crowdfunding platforms have given startups a whole new way to raise capital. If you have a great product or idea, then crowdfunding can be an excellent way to get the funds you need to get off the ground.
As your startup grows, you’re going to need to start hiring people to help you with the day-to-day running of the business. This is one of the most important things you can do, as the people you hire will have a major impact on the success or failure of your startup.
The trick is to find people who are not only skilled and experienced but who also share your vision and values.
So, define the role carefully, conduct an extensive candidate search or hire a recruitment agency, and make the interview process thorough.
As your startup starts to take off, you’re going to need to start thinking about how you’re going to scale it effectively. Many founders falter at this part because it requires business acumen.
You have to put systems and processes in place that will allow you to grow without sacrificing quality or customer service.
For instance, learn to outsource. This is especially important for roles such as accounting, marketing, and HR.
Or, if there are any processes in your business that can be automated, then you should definitely do so.
These are just a few of the main challenges that startups face. If you’re able to overcome them, then you’ll be well on your way to success. Keep your chin up!