being a small start-up

Starting a business can be exhilarating and fulfilling, but in course it can get complicated and may challenge you in many ways. Challenges and problems will be nothing new but will be something we have often seen happening to others.

Most small businesses fail because of lack of cash flow. Study says that 79 percent of small business failures cited “starting out with too little money” as one of the reasons for the business downfall because owners borrow based on their ideas of a successful business, instead of borrowing for a worst-case scenario. A start-up business owner needs to be optimistic, but often is too optimistic about seeing profits. Without adequate cash flow, slow sales or a downturn in the market can end the business before it has a chance to gain momentum.

Common problem for new businesses is to hurry into marketing campaigns without understanding the actual target market. The costs associated with marketing is stiff and if a business does not know who its target market is, then the money may go wasted. With incorrect messaging the reach is limited and don’t reach the target audience.

A start-up requires tremendous effort, commitment and strong will to make it a success. Add to this the financial stress of a fledgling business. Start-up business owners often have problems balancing the overwhelming demands of the company, if the stress of the workplace spreads into the home, the business owner may feel pressure around the clock.

A common problem for most entrepreneurs is the belief that they can handle all of the start-up’s operations by themselves. It may be a cost-effective way to run the business, but operating the entire business on your own may not be a wise decision or the best use of your time. Many small-business start-ups may not require full-time employees. But it’s a good idea to have at least one or two teammates who are ready to help. With experienced, reliable assistance you can avoid other common business mistakes. When it is time to hire staff, be careful in your choices, employees are a crucial component in the success of your business.

But as a matter of fact hiring is also a big problem for small companies, atleast in a business like mine. We offer marketing solutions and are often in need of high-end graphic designers, writers and editors. And these creative people don’t come cheap, so most of the time hiring them is out of question, thus, use them on contractual basis. Contract has its own issues in our country, India where we operate. Most workers are never committed. Also, since we are a small company, many people don’t like to work for us as we are too small and are kind of perceived as unstable, have no brand identity. Hence, the moment they get an opportunity from a bigger company they shift jobs.

Since you are competing with big fish it does not mean you have to quote rock bottom prices. Pricing your goods and services too low can delay the process of turning a profit. Instead list fair prices and make sure your start-up excels in customer service and delivery. Its very important to excel in any field and customers do appreciate on-time response.

One thing I got to say, its tough but not impossible.

This a guest post by Ms. Thapa, Twitter @bijeta

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