6 Problems Startup Business Faces with Solutions

Business startup Problems

Working on your very own startup business is a fantastic idea. But not every business takes off smoothly. While planning a startup, people encounter several issues that you might be facing too. So, to save you from the misery and potential downfall at the beginning, I’ve listed the top 6 problems startup business face.

After analyzing multiple startups and with the help of multiple entrepreneurs, I ordered this list from beginning to bloom. Also, with each problem, you will get the best solution to solve your issue and progress without slowing down. So, without waiting, Let’s jump into the details!

Problem #1: Niche Selection

Problems Startup Business Niche Selection

One of the biggest problems startup business faces is the selection of a niche. With the fierce competition in every field, it is hard for people to identify what to start, where they begin, and how they will do it. Moreover, it also leads to another factor. If somehow they select a niche with high potential and audience, the identification of the problem causes headaches.

Solution: Start Under Your Domain

A startup demands an observant eye to look for the issues people face. You need to identify what is causing people trouble or how the already working businesses in the field (your competitors) are not fulfilling customers’ requirements. To get this attention to detail, start under your domain.

Research the market you already have experience in or are familiar with immensely. Being an enthusiast of your to-be startup industry, you will know its thick and thins. So, you will know where to look for a problem or low competition and address the issue with a thriving business.

Problem #2: Funding or Investment

Funding Investment

Once you get your startup idea, the next problem is how you will finance it. Here you have two options, i.e., funding or investment. People mostly interchange the two terms. However, they are slightly different.

  • Funding is the collection of funds where you save an amount for your business. Around 78% of small businesses are self-funded in the USA. Sometimes, it also refers to raising funds for a startup, where you run campaigns to collect money. Funding as such is usually not returned.
  • Investment, on the other hand, is finding an investor or sponsor for your business. You present your business idea to different investors to increase their interest and convince them to invest in your business.

When they invest in your business, they become a share partner who gets a percentage of your profit. But gaining an investor’s attention is not that easy. Rejection or ignoring are among the major problems startup business faces in this case.

Solution: Get Loans or Create High Potential Business

For funding solutions, first, analyze the scale and requirements of your startup and begin saving for the business on time. But if it may get too late to collect the required amount or the initial funding is too big, you can get loans. Multiple banks and financial firms offer business loans with low interest and easy installments to help people start a company.

But if you are more interested in the investment plan, you will need to find investors. Here, the business model matters the most. Come up with a unique and problem-solving idea or modify your planned strategy a little bit to make it more impactful and valuable for the customers.

Then present your idea to the investors, focus on how your business can solve people’s problems, and how much success potential it has. You can check out a list of more than 33 best business ideas our another expert has crafted. Pick an idea that piques your interest and falls under your domain, and start planning your startup.

Problem #3: Finding Qualified Employees

Problems Startup Business Finding Employees

When everything is set up, the next thing is hiring. In startups where you are the sole worker and self-employed, this problem doesn’t affect you at all. But hey, don’t skip it, as when you will start expanding your business, finding suitable employees will be inevitable.

Returning to our problem, searching for the right candidates is often daunting. Many people consider that they will find the right pick since fresh graduates enter the grid every year. However, the process is not that easy since several relevant and (of course) irrelevant applicants apply for the open position. So, it becomes exasperating to shortlist and pick one.

Solution: Hire HR Experts or Companies

To address the issue, you can create a human resource department that is responsible for hiring the right talent for a certain position. The HR department will sort out many of your hiring problems while also establishing a connection between employees and managers. But yeah, I get it! You will need to hire the person who will help you hire. And it’s more or less the same process.

So instead, you can work smartly and hire an HR company. After a quick research, you may end up with a great team that only consists of professionals. So, you don’t need to worry about hiring at all. Moreover, it will also cost you less than creating and supporting a separate HR department in the company.

By the way, if you find these problems familiar to yours and the solutions are helpful, you may like to read more about others’ startup mistakes and how to avoid them. Learn from other others and expand a business without hiccups.

Problem #4: Ignoring Marketing

Ignoring Marketing

Sales are one of the major problems startup business faces as it doesn’t have many clients or customers initially. However, soon it starts generating sales and ignores marketing completely, relying on word of mouth or organic reach (in online businesses). But that’s where they make a mistake. You need advertisement and proper marketing to reach your potential clients and customers to generate sales.

Another factor that many startups ignore marketing is that they don’t have enough funds for it. Starting a new business is not that easy, and managing its finances calls for even more attention. So, many people overlook the marketing factor among bills, salaries, product investments, and all. Eventually, they left with no bank for marketing.

Solution: Invest in Advertisement

Since now you know its importance, you can plan beforehand and dedicate a section for marketing and advertisement before starting the business. Don’t overestimate your product or service, even if it is a revolutionary idea, is unique, or stunningly solves people’s issues. Yes, some businesses get lucky and succeed without marketing, but luck doesn’t strike everyone. So, strategize intelligently and keep a share for advertisement.

Problem #5: Exponential Growth

Problems Startup Business Exponential Growth

If you overcome all the above problems, then your startup is most likely to bloom. Well, Congratulations! But unplanned success can also become dreadful if it grows exponentially. Although many overcome it eventually, some startups get sudden boosts that overwhelm the workers and executives.

If you also get a massive boost and don’t devise a plan timely, you may take a couple of steps backward from this giant leap. Usually, such growth demands attention to multiple aspects, like:

  • New hirings to match the pace.
  • Increased workforce or production speed for more sales requirements.
  • Larger working space to accommodate more employees.
  • Improved or reconstructed financial plans.
  • Upscaling customer support to address people’s complaints or queries.

Solution: Strategize With New Plans

Unexpected growths are among the rarest problems startup business faces that can damage the roaring company badly. You need critical thinking, an open mind, high problem-solving skills, and quick decision-making to tackle the issue. Analyze your sales demand, business potential, and customers’/clients’ requirements. Then strategize your next moves wisely and accordingly.

Problem #6: Finding a Balance

Problems Startup Business Finding Balance

When everything sort out, the last thing is to balance your lifestyle. At this stage, when entrepreneurs are successful in building up a thriving startup, they start losing a proper work-life balance. They either get too sloppy due to a steady income or too workaholic due to the workload or passion for creating the business an industry-leading tycoon.

Resultantly, they either don’t focus on their business direction or don’t give time to their personal life. And it is included in the most overlooked problems startup business faces. Such people lose business in the former case, or the latter compromise their health. Hence, finding a proper work-life balance is essential.

Solution: Create a Timetable & Be Strategic

This problem requires self-control. If you are struggling to find the balance, try creating a timetable. Keep your work confined to dedicated hours (mostly office hours in this case), and don’t attend to any calls, messages, and notifications when home or enjoying your personal hours (unless they are extremely important).

Another aspect of this issue is that many owners keep most things to themselves, overloading themselves with tasks. So, be strategic and hire the right candidates or use the right tools for help. Here, the decision is yours. Analyze which tasks you can hand over to specialists and which are doable with the right tool.

Wrap Up

No business starts perfectly. It always moves from various peaks and problems, whether at the startup, during bloom-time, or after getting successful. Initially, these problems are higher, and many people even fail as they don’t address them properly. But you can now avoid them, as here you’ve learned the 6 major problems startup business faces.

From planning the baby steps to expanding it with the workforce, you will encounter several problematic stages. So, use the tips I’ve given you, avoid the issues that fail many businesses, and grow your startup into a success.

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