Dealing With The Startup Financial Struggle:
A financial challenge faced by most startups and growing businesses
This is the most challenging of all startup’s problems and as crucial as it is, I will make it very simple to grasps and honest as possible.
The first thing to realize is that you are not alone. If you are facing financial challenges with your business, note that most entrepreneurs out there are faced with exactly the same difficulty. It is normal for most businesses to not make money in their penetration phase. It is an investment stage; don’t expect to quickly yield returns. Many businesses lose money at first, and must plan on how to make it through raising funding for growth and the best way possible for the business to generate the revenue and profit to solve their financial hurdles.
Let me emphasize this lines again; the startup /small business financial struggle is much real and a menace. Every business starting off faces it. It is the phase which most small businesses fall out or either step up to growth. It is most challenging especially for the startups because even the “big companies” is faced with some financial struggles too, and this could either break or make the entrepreneur.
Entrepreneurship is a battlefield; it requires the brave heart, a surviving spirit and a well crafted strategy in order to keep alive. In the business language; Entrepreneurship is very competitive, it requires skills, planning, creativity and entrepreneurial intelligence to stay relevant and on top of your market competition.
From a personal experience, it is the moment startups feel they made the wrong career decision, a very frustrating experience and a moment where “on lookers” perceive you as a failure and clueless. You need more than the passion most entrepreneurs talk about to face it.
A primary inhibitor of business start-up is that few aspiring entrepreneurs have the financial ‘reservoir’ to take up the challenge for the uncertain future of a start-up venture. In a recent survey, about 70 percent of new startups owners in Africa identified inadequate finances as their biggest hurdle, about 57 percentage said lenders were too conservative and 30 percent unable to find investors.
As a rising entrepreneur, I have tasted failure, almost every entrepreneur have. I’ve made mistakes, quite silly ones too. I have pretty much succeeded a few times, also. These lines are as well every entrepreneur’s. Along the way, I’ve been able to understand some of the known reasons why some or most startups struggle through financial crisis and more importantly how to face them or pull through it.
Why Small Businesses or Startups Fail to pull through the financial struggles?
Nine out of ten startups will fail. Such a burdening truth, but that ‘one’ out of the ten that succeeds will motivate you to keep stepping up the stairs; Because striving entrepreneurs need some good “knock outs” of some reality checks now and then. Rising entrepreneurs need to hear the cold failing stories to embrace the journey and some successes to keep the grooves on, to work smarter, harder, stay dedicated and daring to what they bargained for.
To be continued …
Author: Harmony Attise