Though the popularity of entrepreneurship is fast advancing north side, but startup venture brings its own unique set of practical/cultural challenges and problems that its leaders must think and commit to address these.
Entrepreneurial adventurism is on rampage across the world as more and more millennials opting for this route rather going for jobs and limiting their life to 9 to 6 sort of routine. Youngsters are collaborating in their colleges itself to form a startup or joins hands after college to solve a business problem and earn high while aiming high. They have fantastic ideas though, but with no experience to make right moves, many a time they land up in situation where either they get a taste of failure or business start running at snail’s pace leading to internal chaos leading to impending failure. It’s a facts that there are more funding opportunities available than ever before. To fuel it further professional courses and content on how to start your own business are easily accessible over the internet, and institution/community-driven incubators and innovation hubs are mushrooming all over the country. So, it’s a good idea and time to be engaged in the startup venture. Let me bet here, this is an industry which is not going anywhere or slowing down anytime soon.
Though the popularity of entrepreneurship is fast advancing north side, but startup venture brings its own unique set of practical/cultural challenges and problems that its leaders must think and commit to address these. Listed below are several challenges that today’s entrepreneurs are facing today, and advice on how they should be tackled. But the whole startup top line will have to work hard together to overcome these hurdles, where they will collectively create a startup with culture that’s inclusive, efficient, and valuable for every stakeholder.
But before we embark the startup journey, an important question must be in our mind- Why do startups fail in the first place and failure rate is so high? One of the key trigger behind failure is the few high level risks being associated with startups. These mainly are business strategy adoption and then execution failures. Well friends, we will discuss all this here, with a focused approach as to what are the most common pitfalls of a startups and try finding possible solutions:
- The first and most critical step is to choose your partners with extreme care and due diligence. Once done then trust them with watchful eyes. Start trust building exercise from the day one.
- Know your partner for at least a reasonable time which can vary from 6 to 12 months. Evaluate him on your parameters. And yes, check if you too fit on those parameters and if not then don’t expect him to be 100%.
- Build a robust business strategy with deep involvement from the partners/stakeholders. If required take help of mentors and consultants you have with you.
- Rather controlling, give them free hand but bind them with processes/ policies. Please note that you should be the first to follow the processes/Policies. This avoids most of the conflicts resulting out of misunderstanding. It also saves you legally in case of an issue.
- Trust your business instincts and document everything to strengthen the processes and mutual trust further.
- Choose partner who possesses the skills you don’t have. Remember learning is always mutual. And for this wear the hats of being a teacher as well as avid learner.
- Find out how your potential partners thinks. Respect their views. Any disagreement should be in close chamber. Be ready to change yourself as well if require so at any point of time. Remember a little adjustment saves a big disaster in business.
- Ensure you share every business issue/problem with partner before he knows from other sources later. This ensures each partner is on the same page always. Letting him know the things he must know before other know them will empower him as loyal stakeholder.
- Learn when to break the partnership before it breaks the business. This is extremely important and thoughtful exercise. Any such break must be only after careful assessment. Most of the breaks can be salvaged before final decision. So give it a serious chance first.
- No business can run without use of a technology. Right people and processes are the keys to select the right technology for the business. One should not compromise on this until you have limited funds. Remember not to do overrun.
- Periodic reviews are of immense importance to bring continuous improvements and address issues before they become critical. A good process of business review sets the tone of a successful business. An external mentor/consultant may be a great source to set this process right from the very beginning.
- Keep work freedom and financial freedom separate. Second one needs stricter check and balances and any unmindful freedom in this aspect can break the entire business ecosystem.
- And last but not the least is manage success and growth. This requires lot of patience and coolness in attitude. Most of startup turmoil are result of this factor. Success brings attitude and ego both and these bring change in behavior resulting into a silent unrest boiling underneath. Seek advice to handle success.
Though there is a long list of sound advices for startup owners and partners but aforesaid key points will keep the people and business both in synchronization where you get maximum output in terms of business and bottom-line both. Have a great startup journey.