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Typical problems of startups and their solutions

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Most entrepreneurs who have already passed the stage of formation, development, and growth of a business note a flurry of problems that arise immediately after the launch. It is very dangerous to underestimate the role of the team in this case: despite the fact that the founder sets the main milestone, only well-coordinated work and corporate culture will lead a startup to success.

Below we consider the main problems associated with collegial work within the project.

Incorrect definition of the target audience

The startup team formed a hypothesis that their product would be of interest to certain customers. Based on this idea, they take the company to the market and face a lack of demand. The problem is that the value of the product was determined “without leaving the office”: the picture of the world of startup employees can be very different from the needs and “pains” of the target audience.

Solution:

Before starting to produce a product, a startup should do preliminary market research. Do not forget at the initial stage to prepare several ideas at once, so that if one of them fails, you can quickly make a pivot – a change in the direction of the business model. And the speed of reaction is the first law of the viability of a startup.

Inability to convey the value of the product

A not very experienced startup team simply does not have the professional skills in the field of deep study of the target audience and drawing up a truly effective business plan. If a startup cannot explain at the stage of attracting investments how useful its product is, then in the future it is unlikely to convey its value to the target audience or attract financial injections.

Solution:

Find a strong marketer and salesperson who will help to avoid the typical “stumbling block” of many startups – the difficulty in communicating with the “outside world” and ignorance of the laws of the market. Naturally, the words about the future demand for the product in the business plan must be confirmed by real numbers.

Slow response and missed deadlines

Startups require an instant response and quick acumen, and even good specialists, doing new work for them, are bound to slow down. Breaking deadlines is another common “disease” of young teams: incorrectly distributed responsibilities, confusion when looking for new information, “grinding” before well-coordinated work – and the project is disrupted, and the customer leaves.

Solution:

For young startups, a mentor (tracker) is vital – a person who is familiar with the business model, who can suggest weaknesses in the team, help in the selection of missing specialists, and minimize the likelihood of missed deadlines or chaotic team actions thanks to his experience.

Lack of coherence at work

The initial lack of coherence and even conflicts between employees is an integral part of the formation of a business. Gradually, this stabilizes on its own, the main thing is to track the trend and correctly distribute responsibilities, taking into account all the characteristic features of the team members. But this will take time and experience. This just will be worked out on the first clients, which will affect the quality of work.

Solution:

At the initial stage, it is necessary to form a team of several professionals in their fields (founder, product developer, marketer, salesperson, legal adviser, financier). Everyone should be engaged in one kind of activity, and misunderstandings that arise at the junction of the actions of team members are decided by the founder. It is better to hire professional employees from outside result-driven teams.

Low level of customer support

The team can make a typical mistake for novice entrepreneurs – to “dump” an already warm lead and go in pursuit of new ones. Usually, this is due to the same misallocation of employees – for example, only salespeople are hired, and the availability of technical support and account managers is ignored.

Solution:

Scale the team as the project evolves. If customer support managers are not yet needed at the MVP development stage, then with the entry into the market, it will be necessary to expand the staff. Increasing the number of employees at least six months to a year after a startup appears is another indicator of its viability and the founder’s responsible approach to business.

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