FFCON21 Breaking Barriers May 11-13, 2021

5 Challenges Facing all Start-Ups

Guest Post | March 5, 2021

Startup challenges - 5 Challenges Facing all Start-Ups

Starting a new business isn’t easy at all. The world is littered with start-ups that failed in their first year, and you don’t want to become one of them. However, if it wasn’t challenging, then everyone would be doing it, and it’s all part of the experience of creating a start-up. While every business journey is different, here are some of the challenges most start-ups face.

Financing

Setting up a successful business doesn’t come cheap. To see your idea through, you may need millions of dollars of investment, and finding it isn’t always easy. This area has been opened up a lot in recent years with changes to initiatives like equity crowdfunding, but it’s still one of the biggest hurdles start-ups face. Getting that initial money in can set the ball rolling for your business, but you’ll have to work hard to secure it.

Expectations

Sometimes it’s your own expectations that can hold you back the most. The word start-up is very loaded. We tend to think of exponential growth, exciting markets, and fast money when we hear the word start-ups, but for many businesses, this is far from the truth. Business success takes time to achieve, even if you’re one of the lucky ones.

The majority of start-ups fail in their first few years, so you have to be realistic with your expectations. This will allow you to make better decisions for your business.

Brand Recognition

How do you create a buzz around a brand-new business? Many start-ups are entering into markets where there’s fierce competition, and they’re up against established names. In these cases, it can be extremely difficult to get your brand recognized.

See:  Governments, Don’t Let your Startups and Scaleups Die

This is where innovative marketing comes in and can make all the difference. Branding can be something that sets you apart, but if you’ve not got it right, it can mean you never stand out from the crowd.

A Changing World

The world changes quickly, and if your business can’t adapt, then it will struggle to get off the ground. For example, in the early 2000s, business travel was huge. If deals needed to be made on the other side of the world, then you just flew over there. However, changing global opinions and technological advances have meant that travel budgets are much tighter.

If you’re not using innovative services such as Amex Global Business Travel, then you might not be making the most of the opportunities a changing world offers.

Making the Right Hires

Your employees are one of the most important parts of your start-up, and it’s important you find people who are going to fit with your culture. It’s easy just to look at job-specific skills when hiring, but you really want somebody who’s going to grow with your business and embody your values. Those first employees will leave a big impression on your business for many years to come, so it’s worth putting the extra effort into your hiring decisions.

 


NCFA Jan 2018 resize - 5 Challenges Facing all Start-Ups The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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