Managing Startups: How to Overcome These 4 Startup Challenges

By
Sami
November 3, 2021

Startups push boundaries, drive innovation, and disrupt markets. But just like any other business, there are a number of challenges when managing startups on the path to success.

Research from CB Insights shows that 29% of startups fail because they run out of cash and 23% fail because they don’t have the right team. These are just two of the many challenges that startups face in their early years.

Overcoming these major obstacles can help startups avoid failure and work towards a path of healthy growth.

Managing Startups: 4 Challenges to Overcome

1. Finding the Right Talent

The right team can mean the difference between success and failure. However, talent comes at a price. The cost of building a successful team can be a deterrent, so many founders and co-founders wear multiple hats to avoid these expenses. In the long-run, this approach harm’s the startup’s chances of success.

Founders need to stay focused on what they do best: running the business. The right personnel can bring skills and talent to the table that will help the business grow and thrive.

Finding the right talent isn’t easy. The key to overcoming this challenge is understanding which skills your startup needs and creating a hiring strategy early on. This ensures that you don’t waste valuable time scrambling to put a team together later on in the process.

Assembling the right team is just one piece of the puzzle. It’s important to make sure that your personnel has the tools to stay organized and work efficiently in the months and years ahead. A startup toolkit can provide the HR, accounting, and project management tools your team will need to keep operations running smoothly.

The right platform for startups to grow begins with hiring the right talent.

2. Managing Finances and Finding Investors

One of the biggest challenges in managing startups is financing. Capital can help you overcome virtually every obstacle in your way to success. Lack of funding and poor financial management can force many startups to close their doors before they have a chance to realize their potential.

The average small business needs $10,000 in startup capital, but a third of small businesses launch with just $5,000 in cash.

Common financial problems startups face include:

  • Lack of funding
  • Mispricing
  • Underestimating monthly expenses
  • Underestimating startup costs

Investor startup matchmaking can help solve this problem. These services pair investors with promising startups that match their personalized profiles. This helps startups get the financing they need to launch and grow their operations.

Accounting tools can also help ensure that the startup is managing its finances properly and putting its funding to good use.

3. Poor Planning

It may seem like an obvious step, but many startups fail because of poor planning. Some jump right in without a plan, while others fail to cover all possible contingencies.

A plan will act as your blueprint and guide, helping your startup achieve its goal and overcome obstacles along the way. Your startup’s business plan should cover the most important aspects of running your business, such as staffing, sales, development, and funding.

To overcome this challenge, make sure that your business plan covers key areas right from the start. It should also account for unforeseen events. If things take an unexpected turn for the worse, planning can help you weather the storm and ensure that your startup survives or even thrives.

4. Time Management

Time is money. There are only so many hours in a day, and your to-do list is a mile long. If you’re not focused on the most important tasks, it can hinder growth and progress. Before you know it, the day has gotten away from you, and your most important growth-related tasks have yet to be completed.

Time management is a common challenge for startups, but this is another key area where tools can resolve the problem. Consider using a platform for startups that include financial, productivity, and HR tools to streamline non-core tasks and save valuable time.

Efficiency and productivity can help you maximize your time, allowing you to focus more time and energy on core tasks that will aid in your startup’s growth.

Managing startups is a challenge in and of itself, but there are individual obstacles that can be overcome with proper planning, enough funding, the right team, and proper time management.