4 Hurdles Faced By Almost Every Startup Founder or Young Entrepreneur Today
Having an awesome startup idea is one thing while launching the startup is a completely different agenda. Today, the booming startup culture around the globe is encouraging or motivating many young entrepreneurs to come up with new product ideas that would not only help the end user but also make their lives better.
However, launching a startup is not an easy job and requires a lot of patience and commitment towards the big idea of your startup. With the widespread internet coverage across the globe, the competition is very tough within the industry. Hence, sales and marketing becomes the key that defines the success or failure of your startup.
And, this is just one of the hurdles that startup founders face today. Launching a startup and making it successful needs a lot of determination as you must overcome an array of challenges along the way.
Here are 4 tough challenges that every young entrepreneur or startup founder face along their startup journey:
Finding the right co-founder
A startup is the early version of a full-fledged enterprise or business. Hence, it requires a quality team to take care of different marketing and management tasks equally important to designing and developing the product. At times, a co-founder or partner could come handy who is aware of the marketing and sales aspect in the industry as well as could bring some finance for the startup too.
However, finding the right co-founder is always a tough job and the biggest hurdle faced by most startup founders. They often look for someone who can resonate with their ideas and goals as well as display the same commitment and determination towards the project. In today’s hectic and competitive atmosphere, it is often hard to find a partner who is willing to quit the job and work exclusively for a startup as a co-founder.
Solution: The best examples of a successful team of co-founders consist of college buddies or colleagues. Hence, the best place to look for an ideal co-founder would be at your campus or workplace. Although, it is advisable not to involve family or friends as your co-founder, it may be worth a try if you could find an ideal person who shares the same passion to build a startup as you do.
Competition within the market
With the evolving startup culture, there’s hardly any fresh idea within the industry for a new startup. Most of the founders always try to enter an established industry and create a product or service similar to another successful startup by adding something extra or different along the lines.
Well, it is an ideal move as the market for such a product is already established and it always becomes easy to be successful rather than launching an all new concept that takes some time for the users to digest. But entering an established market would also bring competition. For e.g. beating Amazon at its own game will always be tough for new eCommerce based startups until they bring something afresh and unique for the users.
Solution: Try to identify the problems within the industry and find an ideal solution for the same. Once you have defined the right solution, you can look for ways to integrate the same within your startup idea and launch it. This way, even if you have a similar product as other successful startups out there, you could always make a niche or market for your own venture in sometime eventually.
Hiring talent for the new startup
The one major issue with a new startup is hiring quality staff of engineers, developers or designers. The good lot don’t consider startup as the ideal platform for their career growth and hence opt for larger MNCs rather than working for a newly launched startup venture.
It is often easy to lure an expert talent to work at Google or Amazon today, but the same won’t be the case for convincing the same talent to work for a startup that has the potential to be the next Google or Amazon.
Solution: The best way to hire quality talent is offering better perks and if possible, even equity share to the employees who will make the core team for your startup. If you are not sure about equity share, you can always hunt down the best talent on college campuses by hosting competitions that are specifically designed to sort out the right talent required in your startup.
Lack of funding at the initial stage
If you have an extra-ordinary product idea or a fresh concept for your startup venture, you wouldn’t have any issues with seed funding for your project. However, the biggest hurdle is to approach the angel investors or venture capitalists and convince them about your startup idea.
Because of the huge flood of new startups launching year after year, most of these Angel Investors or Venture Capitalists are very strict in choosing the right startup to offering funding. It will be tough for a young entrepreneur if he/she believes that having a great startup idea would do the trick.
Solution: Try to find angel investor groups or visit some venture capital and try to fix an appointment so they could hear your startup pitch. Even if they are not convinced with your project, you may build some good connections with these investors which may be helpful in the future. Remember, nobody is interested in how unique or fresh your concept is when it comes to investment. All they look for is the purpose and scalability of your product in the long run. Only if your startup is able to solve the problems of the end users, you will catch the attention of these investors. Hence, start your pitch addressing the problems and how your startup could solve them. You can also try to list your venture at different startup accelerator programs to receive initial funding.