Starting your business can be an equally challenging as exciting time. You might have been sitting on an idea for a quite a while, always telling yourself it wasn’t the right time. And one day you decided that now is the time and you got your business underway. As you finally see the business idea you had in your head become a reality and see how people respond to your product or service, you will also face the obvious and not so obvious struggles any start-up will have to deal with. For some, these initial struggles are just hurdles that need to be overcome, for others, these hurdles become giant walls that seem insurmountable. If you’re part of the latter group, don’t worry, there is always a solution. Here are three of the most challenging hurdles and how to overcome them.
Making a Name for Yourself
The first one is winning the trust of the consumer. You will quickly realize that you are a small fish entering a big pond with more substantial and much larger fish. You will have to build a name for yourself to even be in the consideration set for consumers. Where other companies can rely on a brand name they developed over the years, even decades, you will be seen as a risk as you are an unknown entity. The key here is to be ultra-customer-centric. Putting your consumer central, communicating well and personally, you will soon discover that consumers want the smaller player, the underdog if you will, to succeed. All you need to do is introduce yourself properly and listen to what the consumer has to say.
The second problem would be cash flow and cash management. It’s easy to get started with a little bit of your own cash, a spending limit on a credit card and perhaps some overdraft on your business account. Obviously, this won’t last forever, and start-ups will find themselves quickly having cash flow issues. The best advice is here to get external help. You should either find a financial expert that can look into different options and answer questions such as: “what is invoice finance?” Looking at all the different ways to create a healthy cash flow for your company ensures that you can pay your suppliers and your payroll. If you plan on purchasing any equipment consider equipment finance rather than using your own money. Most equipment finance lenders offer lease terms with competitive rates and balloon payment options which gives you more flexibility should you decide to keep or sell the asset later on.
Hiring New People
The third and last problem has all to do with the latter mentioned item, the payroll. One of the most challenging times for start-ups comes when it’s time for hiring people outside the initial founder’s group. It’s excellent news you are hiring, which means business growing. However, as you’re still in the start-up phase, you will really need this superstar to help take your organization to the next level. And being in a start-up means having to go the extra mile once a while. You will want to find someone who would enjoy the start-up character and wants something more than just a 9-5. How do you find a person that fits all the boxes? The answer is usually more in plain sight than you think, as the saying goes, “birds of a feather flock together,” you can generally find the perfect fit in your close network.