The Challenges of Starting-up: Small Business Growing Pains
by Growth Marketing Firm, on Mar 11, 2020 1:37:00 PM
Let’s face it, this is the age when startups are breaking out everywhere and the sheer enthusiasm being brought up by motivated entrepreneurs is certainly a force to reckon with. Starting a business, of course, can be exhilarating and fulfilling, but it can also be quite complicated and may challenge you in ways you had not imagined. Despite the rising popularity of entrepreneurship, the startup culture brings its own unique set of questions. Do you keep your business where it is, or take it to the next level? Is it time for you to scale up?
While scaling your business at a speed beyond your company’s capabilities can be detrimental to its success, scaling slowly can risk losing momentum and significant opportunities. By knowing and preparing for these potential growing pains, you will be better equipped to deal with complications when they arise. No matter how prepared you are, when attempting to push a startup past the initial launch you’ll face a number of growing pains. Here are the common challenges when transitioning from startup to scaleup.
Challenge One: Hiring The Right People
All small businesses strive to be profitable, but studies show that about half of all small businesses fail in the first five years, and only 20% survive the next five. Seeing these stats made us think – what’s the difference between those that succeed and those that fester and fail?
When you start a new business, you build and nurture it until it’s running. In the process, you develop a team and culture that often act like your second family. As the heart of your business, the synergy between your team is important. Developing a highly successful team culture that comprises of individuals with similar capabilities and identical focus is one of the biggest challenges. However, this step is essential to the survival of the company.
If you want to build a successful business that thrives on the backs of talented and disciplined people, hire based on potential, not past experiences and gauge how they connect with your vision. If you can get these things right, you’ll be able to hire and retain top-level talent as your startup enters periods of steady growth.
Challenge Two: Insufficient Capital
If you find yourself exhausting resources in no time, you are definitely not alone. At the risk of overstating the obvious, your new businesses will need capital to operate. And the majority of businesses fail due to the lack of or misuse of its capital. Normally, small business owners underestimate the spending and at the end of the day, they don’t have the guaranteed capital to invest in other business endeavors. So, it is up to the business owner to identify the potential financial need and utilize the capital in a careful manner.
Challenge Three: Company Culture
While keeping an eye on finances and business logistics is critical to a startup’s longevity, equally important is internal stability and maintaining a motivated and positive workspace. Ask yourself: if you truly value innovation, are you recognizing and encouraging creativity within your workplace? With this in mind, it’s crucial for leaders to define the company’s values and culture while monitoring its alignment and how they’re being supported. You’ll avoid cultural pain points and set yourself up for successful growth.
Challenge Four: Marketing on a Budget
You’ve got your idea and now you’re faced with the challenge of visibility. How are you expected to compete with other companies that have an unlimited marketing budget? While it’s difficult, it’s important to not let perfect become the enemy of good. You can be so wrapped up in producing and responding to the needs of the day, that it can feel impossible to hit pause and know where you are and how to get to the next phase. But there are plenty of ways to market your business while on a budget. Here are a few to take note of:
- Content marketing
- Email marketing
- Social networks
- Case studies
Growing pains are a normal part of running a successful small business. While everyone loves a great success story, it’s rare that we hear about all of the pain and hard work that it took to get there. That said, these challenges are something that needs to be considered ahead of time in order to resolve them as quickly as possible when they do arise. Whether your business is struggling to meet its peak efficiency or change its organizational structure, conquering these challenges can help set your business up for success and overcome a myriad of challenges we face today.