The emerging businesses have a lot of challenges to meet everytime. From sourcing funds to generating revenues, there are multiple business challenges coming in between the way. The budding businesses are often under-estimated in the market. This is because new business have no track records of profits. So in the beginning point, it becomes difficult by the founders to convince the people and get their attention. But however, even after they get ready, there are other business challenges too. Here we will discuss such major challenges of budding businesses.
The major challenges faced by the emerging business and startups are:
-Funds and Investment:
Running a business requires a lot of funds in creating the system. In some business, less funds are required to start. But in many business, a huge capital and operational cost is required. The personal savings are not enough to run and manage a business. The external sources of raising funds are yet another option to get investments. But with the losses of new businesses and market risks, many people do not want to invest in them. The bank also requires a track record to give loans. So there are chances of getting funds through Angel Investors or Government Seed Funding. However there are scams in those areas too! So owners need to be careful about sharing their business matters.
-Increased Competition in the Market:
The current market shares consists large number of sellers in the economy. There is a back to back competition between several companies. The data reports only focus on the larger business shares in market, and represent the rest as “others”. But in the segment represented as others, there are several companies competing with each other. Though there are large numbers of buyers too, but they are all divided among many businesses.
-Customer Acquisition and Retention:
The revenue sources of a business are its customers. So acquiring and retaining customers are the major goals of business. But with the so many options available among the buyers, they are quickly shifting towards other brands too. Customers today are more benefited than businesses are! The increased competition has much benefited the customers than the sellers. Customers are even ready to switch the old sellers with new ones quickly even because of small differences. Businesses have to make a lot of efforts in acquiring customers and retaining them is also the major challenge for them.
If given an option, most of the people will choose working in an MNC than in a new business. This is because the big business is more stable and secure but there’s no such guarantee with startups. So people make decisions on seeing what’s fit for them in present. But on the basis of future prospectives, there’s a scope with startups too. But in the beginning phase, it becomes difficult to acquire potential talents that can lead business to new level. The reason is the same as stated above. The another reasons is that startups usually pay from source funding and in the beginning level, the salary is not big enough to attract talents.
The three mantras to win over the difficulties
The above were the major problems faced by emerging businesses. But despite difficulties, so many start-ups have managed to win over the bg business and turn into a global giant. The major thing that comes above all the four is – passion, dedication and hardwork. All these 3 things together can make it possible. It makes the founders work continuosly and make strategies back to back to deal with the problems. They do suffer but they don’t give up. This is what drives others to have faith on business too. But if the founders are not sound planners, then hardly people will believe on it. So therefore, be a strategic planner and a person that can drive and influence others in their way!