{"id":32302,"date":"2021-07-23T01:00:00","date_gmt":"2021-07-23T06:00:00","guid":{"rendered":""},"modified":"2024-09-06T14:10:08","modified_gmt":"2024-09-06T19:10:08","slug":"10-obstacles-every-startup-must-overcome-to-be-successful","status":"publish","type":"post","link":"https:\/\/www.success.com\/10-obstacles-every-startup-must-overcome-to-be-successful\/","title":{"rendered":"10 Obstacles Every Startup Must Overcome to Be Successful"},"content":{"rendered":"\n

The odds of survival for a startup are daunting at best. Nine out of 10 startups fail<\/a> in their first year. Failure is so common, in fact, that many entrepreneurs have taken to penning failure post-mortems<\/a> to determine where things went wrong, in the hopes that others will learn from their mistakes<\/a>.<\/p>\n\n\n\n

Despite the odds, we keep at it. Perhaps it\u2019s for the love of the business. Perhaps it\u2019s the desire to create something that\u2019s our own. But it\u2019s also because we believe that we\u2019ll be part of the 10 percent who succeed. There\u2019s always a need for companies that are innovative and meet customers\u2019 needs, and we\u2019re sure that we have what it takes.<\/p>\n\n\n\n

Do you have the chops to get your company over the hump? After building my startup, Owlmetrics, an Instagram analytics tool, I realized that there are 10 obstacles every startup must overcome if it\u2019s going to become successful. Here\u2019s your chance to determine your weaknesses and build on your strengths.<\/p>\n\n\n\n

1. Strong Leadership<\/h2>\n\n\n\n

In order for a startup to muster the Herculean strength it will need to succeed, it must have determined leaders willing to put in the hard work to see it through. But don\u2019t confuse being a strong leader with being a hierarchical, authoritarian boss.<\/p>\n\n\n\n

Good leaders understand the need to hire the right people<\/a>, and to delegate and trust those people to do their jobs. They understand the need to develop synergistic partnerships and collaborative relationships. They believe deeply in their business and they continually work to develop their vision for the company\u2019s future.<\/p>\n\n\n\n

Leadership is especially key for a startup, as everything about the company is coming into focus. It\u2019s in an extremely volatile state. Strong leaders are the decision-makers, idea generators, team builders and image-makers for their company. If you stand at the helm of a young company, you play a crucial role in all these areas. In short, the rest of the advice below is worthless without a strong leader showing the way forward.<\/p>\n\n\n\n

2. Thriving in a Competitive Market<\/h2>\n\n\n\n

No matter what type of business you go into, your startup is in a contest for survival. Fierce competition is either going to drive your startup forward, pushing you and your company to new heights, or it\u2019s going to eat you for lunch.<\/p>\n\n\n\n

If you want to avoid being made into sushi, you need to learn to thrive when facing direct or indirect competition<\/a>. In fact, research shows that learning to thrive in the \u201cred ocean\u201d of competition will strengthen a startup for long-term survival.<\/p>\n\n\n\n

Competition forces young companies to focus on customer needs and keep costs lower and contained. It also opens up opportunities that young companies can take advantage of. In the rocky waters of a competitive marketplace, no one has the luxury of hanging out in the shallow end on a life raft. It\u2019s sink or swim, so you\u2019d better be ready to start paddling from the get-go.<\/p>\n\n\n\n

3. Tapping the Right Talent<\/h2>\n\n\n\n

If you\u2019re a strong leader, you already understand the importance of hiring suitable candidates with the right background, skill set and personality to competently do the job. But it\u2019s not just about hiring the right people; it\u2019s about putting together an exclusive team that can work together, feed off of each other, reel each other in when necessary, and remain excited and focused on the task of launching a successful business<\/a>.<\/p>\n\n\n\n

As you go through the hiring process, remember that these are the people who will make or break your startup, so be careful and discerning. The hiring process takes valuable time away from your business. Your goal should be to spend that time wisely so you don\u2019t have to do it again in short order. Narrow your search by prequalifying candidates through thoughtfully written classified advertisements that specify exactly what kind of applicants you are looking for.<\/p>\n\n\n\n

Call references. Have candidates meet with other team members to see how they fit in. If you create the best team possible up front, you will save loads of time and money in the long run.<\/p>\n\n\n\n

4. Sustainable Expectations<\/h2>\n\n\n\n

Your startup has attained a measure of success. Things are looking up and sales are skyrocketing. The sky\u2019s the limit, right? It may be tempting to assume business will continue to exceed your wildest expectations. Here\u2019s your reality check: Good times don\u2019t last forever.<\/p>\n\n\n\n

Even when things seem to be functioning flawlessly, it\u2019s important to keep a cautious mindset. If you assume things will always be good, you are setting yourself up for failure. Sustainability requires consistent effort and hard work. You can\u2019t coast on your past success or rely on unrealistic growth potential.<\/p>\n\n\n\n

No matter what your business, you have to be prepared, keep working hard and understand that even if you are thriving now, the competition is nipping at your heels. True success<\/a> is not attained only when everything\u2019s going your way; it\u2019s also about what you do during the lean times. It\u2019s how you achieve sustainability over the long haul.<\/p>\n\n\n\n

5. Budgeting and Financial Woes<\/h2>\n\n\n\n

If there is one thing that seems to plague most startups, it\u2019s cash flow. It\u2019s easy for a young company to get bogged down under financial stress and pressure. Unexpected expenses and emergencies pop up. Sometimes you appear profitable on the books, but in reality, you are waiting for clients and customers to pay you. The bottom line is that most startups aren\u2019t bringing in much in the way of income\u2014at least at first\u2014so paying the bills and finding ways to grow to scale are ongoing problems.<\/p>\n\n\n\n

Careful budgeting and pre-planning are key to getting over this initial financial hump. Write your cash-flow projections and come up with a business financial plan<\/a>. Knowing what you can reasonably predict in terms of expenses and income will help you plan and spot problems sooner.<\/p>\n\n\n\n

Consider speeding up your cash-flow timeline by requiring faster payment on invoices. Another option is to require customers to make a down payment for goods or services.<\/p>\n\n\n\n

6. Defining Your Product and Your Niche Market<\/h2>\n\n\n\n

For many new entrepreneurs, deciding what kind of product or service to focus on is the first major hurdle in launching a business. This is especially true for e-commerce entrepreneurs, who may struggle to decide which niche market to focus on.<\/p>\n\n\n\n

On one hand, there are so many potentially prosperous niches out there, it\u2019s hard to know which one to devote your time and energy to. All the good ideas have been done, so how do you compete and stand out in a crowded marketplace<\/a>?<\/p>\n\n\n\n

Now is the time to get down and dirty with research and introspection. Here are some things to consider when defining your product and market:<\/p>\n\n\n\n