CHALLENGES FACED BY STARTUP COMPANIES

“I’m convinced that about half of what separates the successful entrepreneurs from the
nonsuccessful ones is pure perseverance”-Steve jobs

A startup is a budding company where it is the establishment of a new idea of a product or

service in the market to aim a position or to compete with existing companies. These companies
are the belief of the founders of developing a product or a service where there is demand.
Startups should always be in a horizontal process where it has to fulfill the tastes and preferences
of customers uniquely. If u are clear about what you want to do unconditionally at any cost then,
in the long run, the payback begins to happen even though there is no apparent payback at the
time you set out to do. An entrepreneur should have a good plan of the business and also a well-
disciplined exercise with taking all the internal and external factors into consideration which will
impact the sustainability of the business.

The government of India has introduced a new campaign called ‘STANDUP INDIA’ in
2015 aimed at promoting entrepreneurship and to help startups with bank funding. Another main
initiative taken by the government is ‘DIGITAL INDIA’ which was introduced in 2015 to ensure
government services and are made available to every citizen through online platform that aims to
connect rural areas by developing their digital infrastructure which translates into a huge
business opportunity for startups.

Now, When we focus on the startup journey we find out many hurdles, many challenges.
Every startup founder knows from the outset that there are going to be obstacles. Now we have
to look for a person or a company who can really resolve this. Here are some of the most
commonly faced challenges where you can plan ahead and crop up the situation when it happens.

CHALLENGE #1 - FINANCIAL RESOURCES: Finance is the main challenge faced by startups

nowadays. There are many businesses that are underfunded due to financial problems, so having
a good financial status can bring success to a business. Many financial options are available like
family, friends, angel funding, crowdfunding, etc..,

CHALLENGE#2 - REVENUE GENERATION: Revenue generation plays a critical role in the

success of the business. Several business entrepreneurs fail to long last the business in the market
 CHALLENGES FACED BY STARTUP COMPANIES

due to poor revenue generation as the business grows on. Most of the entrepreneurs focus on the
funding of revenue to their business and forget to focus on the fundamentals of the business.

CHALLENGE#3-TEAM MEMBERS: Having good team members is very important for the
business to withstand in the market. Every entrepreneur should carefully select the team
members so that every member is specialized in specific areas of operations and good skills that
built up the business. So assembling a good team is of major requirement, failure to have one
sometimes can break up the business.

CHALLENGE#4-CUSTOMER EXPECTATIONS: The next most important challenge is to

reach customer expectations. This can be done by doing up-gradation in the product, innovation
and following up the new technologies timely. This also helps to sustain the customers for longer
period.

CHALLENGE#5-TENACITY OF FOUNDERS-The The founders of the business should get

tough when the business gets tough enough. An entrepreneur should be precisive, persuasive and
he should never give up until he fulfills/achieves the desired results. The founder should also
upgrade new technology into the products.

CHALLENGE#6-REGULATIONS-Every startup company requires a set of permissions from

the government agencies, it is still a challenge to register a company. The regulations like labor
laws, intellectual property rights, dispute resolution are rigorous in India which takes about 30
days to comply with a company compared to 9 days in OECD countries.

CHALLENGE#7-GROWTH DECELATORS-Some of the institutes or organizations of the

same agencies can bring up hurdles to the business by managing the business like their own
ones. So every organization and part of organizations that are tied up should have proper
coordination among them for mutual benefits.

CHALLENGE#8-LACK OF GOOD BRANDING STRATEGY-Branding strategy is one of the

main issues in the market, any lack of branding strategy prevents the company from getting
success at a faster pace. And also creating a proper brand in the market is very important to
succeed in the market.
CHALLENGES FACED BY STARTUP COMPANIES