Topic 1 What are the main challenges that startups must face

RISK

  • The vast majority of startups tend to be unprofitable in their first year of operation, therefore there is a high possibility of failure
  • When startups are under that risk position, it may affect directly their strategic vision and, consequently, they either fail to seize market opportunities or overestimate their sales projections
  • In addition, the more risk a startups takes, the less attractive is for the market

COMPENSATION

  • At first there is little or even a complete lack of money and compensations
  • The rewards are extremely low-progressive and take time to generate actual revenue
  • This is why there are startups that are abandoned or refuse to keep operating

 

MARKET ACCESS

  • The lack of experience can be an obstacle to attract clients
  • It is more expensive to attract new clients than to maintain old ones
  • It is difficult to operate without a database of clients

 

PROCEDURES

  • Startups do not have defined business processes
  • They are exposed to financial issues, legal liability and customer procedures
  • They need to build and implement their strategies from the beginning
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