How to tackle initial Business Startup Challenges
Starting a business
Starting a business can be an exhilarating and intimidating challenge. Every year thousands of businesses get started across a wide range of industries. The feeling of getting started on a new business venture cannot replace three facts on how many of these start ups fail. Start up businesses have a high fake rate. As many as one in three businesses fail within their first three years. Many studies have shown the failure rate for start up businesses being so high as attributed to poor planning.
Experiencing a downturn in a start up is expected, but with lack of planning a downturn can be mistaken for the beginning of the end of the company. Behind every successful business has come errors. Creating contingency plans are best and have to be created beforehand to increase the odds for success. Confidence does not replace proper planning. Knowing the business will work is separate from knowing proper planning will be in effect. The excitement of starting a business should not overshadow planning and homework is necessary for market research. Below are some other contributing factors to start up problems.
Finding money is always a challenge. Securing money can be the toughest part of starting a business. If the funds are from a bank or an angel investor, both come with their own set of challenges. A business plan is key and you become familiar with your industry from the standpoint of your competition. The viewpoint of your competitors leads to a planning advantage. Banks are usually hesitant of lending money to a new company. The lack of credit history poses a questionable format as the fact of the matter of projections versus a steady history.
Another concern, even if money is had to begin the business, is how does a new company stay afloat enough to begin to be a serious player in the game of business? Between start up costs and outstanding debt it can be a challenge to take advantage of early buying opportunities and business discounts. Just as with the banks, vendors are hesitant to extend credit to start UPS and will require payments upfront. Angel investors take time to cultivate and must always be onboard with the vision of the start up as well as it’s potential for growth.
Start ups are starving for marketing in order to speed up the cash flow and profits. It is exciting to start creating commercials, but not best when the research has not been done for the market. Target marketing is key and a start up may need more professional hands in order to effectively meet the goal. Costs associated with advertising and promotion can be steep. it may not be relevant to invest in radio ads only to find the target audience is only online. Print ads may be a better option for certain types of start ups while others need only digital ads. Create a marketing plan to identify cursors. By now your company should havea unique selling proposition that can be used as the voice to gain potential customers’ attention. Every marketing move needs to be customer centered.
Many start with creating a website. This piece of digital real estate is always a good investment. Starting simply with a website could simply mean allowing customers to learn more about the business and sharing the story of the company as well as what is coming next. Once the customer is on the website a company can also capture email addresses in order to stay connected to them. By having email addresses future information can easily be shared visa an email marketing plan.
Digital marketing is a part of the overall marketing pan, so bring certain to have a social media marketing plan is an essential part. Studies have shown the people trust a company more if it has a website and an online presence in social media.
Online, people can find their own information without having the intimidation of speaking directly with anyone. The consumer can make decisions about working with your business all from clicking online.
The social media marketing plan can be as diverse as the target audiences, or as simple as updating regularly to maintain engagement. The networks are varied and social networking goes beyond Facebook and Twitter. Again, the proper research of target markets will aid in deciding how to approach social networks. The audience of the company may be on Snapchat or prefer Pinterest. The planning stage also marks for not wasting time on certain networks that will not benefit the company. Treat the digital marketing plan as a part of the overall marketing and public relations plans. Many business treat social media marketing as the only form of marketing and tend to forget about other forms of outreach to gain attention. All of the marketing wheels moving together can compliment each other. Where one area may fall short the other can make up for it and the complimentary factors will create a cohesive brand image. Each message is consistent with the company’s goals.
Yet another challenge faced by new business others is hiring staff. Anther part of this equation is firing staff. Attempting to run a business alone is a common mistake. Hiring fulltime or parttime employees is necessary. The members of the staff can vary, buy it is important to have a team comprised of an attorney, an accountant and a secretary. You may not hire the later out accountant in a fulltime capacity, but they need to be on your team. Naturally, as the start up expands more staff is added.
Learning how to effectively lead and manage a team are skills not everyone has. Office politics can lead to an implosion of unnecessary time and energy on non-productivity which can cost a start up company too much money. Seeking the assistance of a leader who can guide on better selecting staff is a wise step. Consulting with others can give better advice on signs to recognize and ways to lead which also motivate staff. Staffing may require hiring and firing several members in order to gain a more balanced and ideal solution.
No competition week advertise less because a new business has begun. If anything, the established business will push harder so as to rock the boat of the new business. The more established business may or may not know about your business, but they will continue on their own path. As they already have the business relationships and deals that a new buddies may not, they will continue onward while the new business waivers and tries to gain footing. In this mobile and digital age oftentimes a new business can take advantage of the market with quicker customer service and the ability to get things done without company bureaucracy.
Success stories have been had by many smaller businesses. For example, the company that took advantage of Twitter by taking orders via tweets. There are many digital success victories that can be used as an inspiration to up and coming companies.
Big name companies can be intimidating, but it is not a lost battle. Again, proper planning can lead to success.
Anticipating complications and issues are a necessity. Proper planning gives an analysis of the business idea and the execution depends on it.
Which types of challenges are you facing in your business start up ? Have you found yourself in a tumultuous time, or feel stuck at a step in your business planning ? Contact us and we can assist with a free consultation. In case if you are thinking of establishing business in Thailand and not sure how to go about it, make sure you take our free online business consultation for an immediate solution.
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