In 2021, startups are here to stay. Creating a startup is fashionable. Thousands of young people see the way to not depend on a boss, or to carry out their dreams.
New technologies, and above all, the Internet, make it easier for many entrepreneurs to launch themselves into the void to fulfill their dreams and ambitions.
The potential of startups is enormous and they are mainly focused on new technologies. The businesses or ideas are original, created by entrepreneurs with different ideas and a great desire to take on the world.
It is difficult to see an important or reputable business magazine without a reference to one of the thousands of successful startups that have been born. Internet users see technological advances as something that can revolutionize the entire world and open up incredible opportunities for people that were unthinkable years ago.
The Internet is within everyone’s reach and therefore, the temptation is enormous. A simple idea in a chat with friends can trigger the imagination and make you jump into the void.
But the reality is different. Few are successful. As much as there are more avenues of growth for startups, they face some challenges and obstacles, which are not easy to see at first glance or to take into account when the fever of illusion invades them. They need guidance from the experts. Check out Newchip Accelerator Reviews and see how they can be helpful for your startup.
Startup entrepreneurs often make mistakes due to their inexperience in the industry or in the market itself. The top 5 challenges creating a startup today are
Financing your startup
This is the big problem. There are different solutions such as loans, business angels, but these patrons tend to play it safe and take few risks. If your idea is very innovative, it will be difficult to find external funding. Business angels usually want to ensure the return on their investments, usually at very high costs, with huge percentages in the companies or with a lot of power of decision or veto depending on the idea.
Getting a loan is not usually easy either, and everything must be very clear in order to mortgage the future.
Fortunately, there are online businesses that require little initial investment apart from the talent to carry it out, either in personnel or with the entrepreneur himself.
Lack of innovation
Today, there are thousands of startups looking for the latest great idea. It is difficult to find really good ideas that break into the market. It is not enough to make, for example, a website that has online calculators. You have to offer different ideas, such as offering different solutions for the same calculation or implementing artificial intelligence to propose alternative solutions or more complex calculations.
It is true that there are many important startups, but for every 1 successful startup there are 100 that do not have a turnover.
It is important that the idea is original and that it solves a problem or a need that is not well covered.
Creating a new product or a new need is usually very complex. But it is also true that it is when it works, the more profit you get by not having competition.
You have to have realistic goals. Don’t want to become a millionaire in 2 months. Unicorns are almost impossible. That is why there are so few of them. Goals must be SMART, an important requirement to avoid crashing before you start and have your feet on the ground.
As we said, expecting to earn $1M in the first month is not realistic.
Creating a startup, as we mentioned before, requires funding. And when investors come in, everything becomes more complicated. The pure, clean idea that you have, is corrupted to a more commercial vision. When these investors or partners begin to appear for funding issues, the decisions that need to be taken quickly, begin to be delayed because there are many people with different visions of the business. There are discussions, meetings, contracting points of view, backtracking of ideas, which in the end, make strategic decisions lose agility.
Also the lack of experience can lead to doubts in parts of the business that have nothing to do with the entrepreneur’s idea. Fiscal issues, personnel, or investing personnel or machinery, are complicated decisions that can be delayed by fear.
The idea of the innovative genius may be great, but finding the right people to carry out the idea, understand the vision and value of the business and go along with it is not always easy.
Hiring talent is not easy either. It’s not cheap and there is a lot of false talent out there that can ruin your company. Investing in the selection of personnel, knowing exactly what is needed, without oversizing, and above all, that they bring a clear value to the company is important to carry out the project.
If you still want to start a business, you can take the step, but we recommend you to be calm, sensible, SMART objectives and hard work.
We also recommend you to read this article about some original ideas to creating a startup.