Published on May 3rd, 2013 | by Jose Vasquez0
10 Common Obstacles for Startup Tech Companies
Startup tech companies face countless obstacles, but understanding these 10 most common hurdles can help you prevent and overcome them.
Successful entrepreneurs aren’t intimidated by the problems that arise for startup tech companies—instead, they anticipate and respond to them. These 10 obstacles for startup tech companies are among the most common, so take a look at how they become problems, and what you can do to avoid them.
1. Lack of Funding
A shortage of funding usually hits as soon as you start, but running out of money is a common problem throughout the course of your business. Pursue extra investment capital from angel investors, business partnerships, or venture-friendly crowdsourcing efforts like Kickstarter. Once you’ve got it, keep it by tightly managing your cash flow.
2. Shortage of Physical Resources
Some startups only require a garage and a laptop initially, but eventually you’ll need physical space and technological power. Securing these resources quickly and efficiently can be a challenge, but planning ahead helps you scale without breaking your budget.
3. Team Woes
Startup companies can’t offer high salaries, so it’s tough to find experienced and talented team members. Plus, the small team dynamics could be problematic if two or more people don’t get along. Be very selective in who you hire, and understand that great teams make great companies.
4. No Advisors
You don’t necessarily need an advisor as a startup tech company, but lacking one can make things extra difficult for first-time entrepreneurs especially.
5. No Business Plan
A solid business plan is a MUST. If you don’t have one, make one. Make sure it includes an executive summary, a cash forecast, and a plan to go to market.
6. Tight Competition
Startup tech companies are everywhere. It’s likely that someone out there has a similar idea to yours, so it’s important to make a strong distinction.
7. Unrealistic Schedules
Having ridiculous deadlines can stymie your progress and lower morale. But what’s worse is having no schedule and no deadlines whatsoever—make a solid, reasonable plan and stick to it.
8. Market Apathy
Your product might meet lukewarm or minimal reception. If that’s the case, don’t be afraid to return to the drawing board.
9. Too Many Needed Changes
Returning to the drawing board too many times can be disastrous. Change is good, and necessary at some point for most companies, but constantly revising can be counterproductive.
10. Uncoordinated Expansion
Eventually, you’ll need to grow—but growing too quickly or without a solid financial backing can create instability and ultimately cause a collapse.
No startup tech company is perfect; sooner or later as an entrepreneur, you’ll face one of these challenges. But as long as you’re prepared and responsive, you can put these issues to rest and keep your entrepreneurial momentum strong.