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Common Challenges Startups Face

When you think about businesses, the first things that come into your mind are money and security. But businesses are not that simple. Before you even become successful, you have many challenges to overcome, especially if you are just starting out.

But what are these hurdles exactly?

Business Law

According to the website of Slater Pugh, Ltd. LLP, startups have specialized legal concerns and need to consider certain factors that other businesses do not. These concerns include but are not limited to the following:

  • Determining the best business model
  • Funding options
  • Protecting the business’s assets, such as intellectual property

Without the proper help, these legal difficulties can truly be a burden and can significantly affect the creation and progress of your business.

Competition

Competition is one of the constant struggles in business, and this can be particularly problematic for startups because they don’t have an established brand and customers yet. They are entering the market empty-handed. If there is anything they have, it is the buzz that is created just because of the fact that they are new players in the existing market. But sadly, that is not enough to get a competitive edge in the long run.

Financial Management

Whether you are a new businessman or an experienced one, there is always the struggle of handling finance. Like competition, financial management can be particularly problematic for startups, because they may not have the financial flexibility to take risks, which can make them lose out on the competition. Flexibility is also important when it comes to expansion, when the startups start rolling, getting profits, and having higher operation costs.

Market Share

As said earlier, startups have the advantage of being new, as this can create buzz and make potential customers try your product and services. But this buzz will not last forever, so it is important to use it as an effective stepping stone to get a chunk of market share.

Getting a consistent flow of customers can be hard for startups because of many factors, like customers already satisfied with a competitor’s product and services, doubts on the fact that the company is new, and the lack of talented staff because they are already taken by competitors.

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