BUSINESS
Five challenges all startups will face …
AND HOW TO OVERCOME THEM
SO , YOU ’ VE HAD YOUR LIGHTBULB MOMENT AND FOUND A WAY TO CONVERT SOMETHING YOU ’ RE PASSIONATE ABOUT INTO A VIABLE BUSINESS , WHICH WORKS ... IN THEORY . WITH POST-PANDEMIC FUNDING TENTATIVELY OPENING UP , FREE CONTENT ON HOW TO GET BUSINESS IDEAS OFF THE GROUND AVAILABLE AT THE CLICK OF A BUTTON , AND COMMUNITY DRIVEN COWORKING AND INNOVATION HUBS THAT POINT TO A NEW , MORE COLLABORATIVE ERA OF CREATIVITY POPPING UP ACROSS THE UK , THE STARTUP SCENE APPEARS TO BE THRIVING . STATISTICS SUGGEST HOWEVER THAT ALTHOUGH 810,316 NEW BUSINESSES LAUNCHED IN 2021 ALONE , ON AVERAGE 20 % OF THOSE FAILED . SO , WHAT ARE THE INEVITABLE CHALLENGES THAT ALL STARTUPS WILL FACE AND WHAT CAN YOU DO TO BREAK DOWN THESE BARRIERS TO YOUR SUCCESS ?
Money
Money is likely the biggest issue for most people when it comes to starting a business . The bottom line is that unless you ’ re touched by the hand of Midas and cash starts pouring in straight away , either from sales or investors , money is definitely going to be an issue sooner rather than later and cash-flow issues will massively delay rolling out products , hiring staff , or sorting out a productive space to work .
Even though it might seem counterintuitive when you ’ re trying to minimise financial risk at the beginning , the last thing a startup needs is to hold onto the purse strings too tightly in its early days – exactly when it needs to be focusing its energies elsewhere . As a new business owner , it ’ s part of your job to manage the time and money needed to get to the next level without running out of either one . In order to raise funds through your bank or an investor , you ’ ll need to do a lot of groundwork to validate your business first , but there ’ s a lot of guidance and support out there . Start Up Loans is a governmentbacked scheme in place to help people start or grow a business in the UK ( www . startuploans . co . uk ), and they ’ ve identified 10 key questions you need to consider before you apply for funding that include reference to everything from your business plan to cash flow forecasts and exit strategies .
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