The 3 Most Common Obstacles Holding Startup Tech Companies Back
These three common obstacles are some of the biggest challenges you’ll face, but if you know what you’re up against, you can overcome them with relative ease.
As an entrepreneur, you are already painfully aware of the statistics. The majority of startup companies, especially in the tech world, eventually fail. But being afraid of that potential failure will do you no good—instead, you need to acknowledge that potential failure, work to understand it, and eventually work to avoid it.
Before you can successfully navigate your way around the common mistakes and obstacles that keep good entrepreneurs from cultivating great businesses, you need to first analyze them and attempt to understand how they apply to your business individually.
Look out for these obstacles:
1. Limited Cash Flow. First and foremost, lack of money can cripple your entire business plan. Stay ahead of the game by opening liberal lines of credit and carefully controlling your expenses.
2. Imbalance of Work and Workers. This problem tends to arise when your company grows too quickly or too slowly. Growing too quickly means you have too much work and not enough staff to support it, yielding poor customer service and exhaustion. Growing too slowly means you don’t have enough work to support your employees.
3. Demand Shortages. This could be a result of a lack of consumer need for your solution or an overabundance of similar competitors. Either way, it’s an uphill battle you’ll have to wage. If people don’t want what you’re offering, find out why. Is it missing something that you can add? Are you going after the wrong people? Chances are, there’s a solution that will make your audience crave what you’re offering them.
Avoiding these problems proactively is usually the best route to go, but don’t be surprised or flustered when they do come up. These are a natural part of the process of starting and growing a business, and the key to remember here is that they are challenges that give you an opportunity to evolve. Companies that find solutions that help them make positive change tend to rise to the top, while companies that try to ignore the problem or use short-term fixes to postpone them tend to flounder.