Startup Challenges

Question

I am starting a startup but the ever changing environments and the quickly failing projects frighten me. What are the expected challenges for business and startups in the future?

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Startups Morgan Black 11 months 2 Answers 428 views Contributor 0

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Answers ( 2 )

  1. The expected challenges for businesses in the future are
    1.Dynamic Technology
    You must ensure the long scale business goals and try to find out if your business is at a stake of becoming extinct. If yes then look for the technology upgrade and try to safeguard it.
    For instance: Brick and mortar offices are decreasing in number and everything is going online even if it is a restaurant’s menu or a salon service menu. Be updated or be extinct is the key here.
    2.Ever-changing economy
    In the current economy, the political relations between the countries are unpredictable, so always keep backups so that you are not affected by political relations. Keep in track the economic strategies and design your start-ups’ working capital accordingly.
    If you have vendor in a different country, then follow the bilateral trade laws.
    For instance, Greece suffered the economic crisis, India suffered the demonetisation battle.
    3.Customer acquisition
    I think today customer acquisition is far difficult than before. Although people are willing to experiment new things but there are too many options. Social media is both a boon and a bane. Boon if you still have marketing executive and a bane if you have a social media rep.
    Customer loyalty still is based on the services and cost ratio. If you offer value for money then you are good to go. Don’t underestimate the loyalty cards and membership cards, they help a lot.
    4.Return on investment
    Today’s markets are far more competitive and offer a large variety of substitute. It’s difficult to establish a brand name these days. With all the advertising, technology upgradation, it is really difficult to reach the break-even point and reap profits from your business.

  2. Now and in the future, there are many obstacles that cause more startups to struggle and even fail. Detailed business plans and contingency plans are needed to take care of them. I can thing of the following:

    Marketing Expenses

    As the time advances and more businesses turn to the digital media, advertising costs increase. This means the need for higher budgets and results in lower profits.

    Customer Loyalty, Not

    The ever changing nature of customer behavior makes it difficult to guarantee his loyalty to a brand or a product. Customer is becoming more benefit oriented and is easily distracted.

    New Entrants

    Because most of the startups are hi tech, it is comparatively easy for new entrants to invade the market and build similar and even better solutions. This means less stability and less accuracy in profit and loss projections.

    Hiring People

    This is one of the most terrifying issues that I can think of. Upwork, elance, fiverr and many freelance platform proved that the world is heading to an organization-less world of self employed professionals. To compete, a business owner has to offer two to five times the regular salary to convince a professional to work full time or even part time.

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