Working for a startup and running a startup are both extremely stressful. One mistake could impact the healthy of the entire company and long hours are usually associated with startups. Starting a business in no way guarantees that it will be a success due to the competition in certain business sectors. There are common issues that new companies run into frequently that need to be addressed. Having a plan for a specific issue can make it easy to remedy as an established course of action has been created. The following are common startup problems along with how to remedy these issues.
Client Refusing to Pay or Taking Too Long
Clients might refuse to pay at one point or another which needs to be handled proactively with an ironclad contract. The payment terms need to be laid out along with the details of the project. Far too many companies try to take advantage of startups thinking that their business is keeping the fledgling company alive. Asking for payment needs to be done in a civil way and stoppage of work is something that needs to happen. Clients that demand deadlines are hit that are always late on payment need to be confronted. Business relationships need to be based on mutually beneficial partnerships instead of one party taking advantage of the other.
Trouble Generating Leads
Lead generation strategies for HVAC or for a law firm are going to differ. Digital marketing has become more important than any other form of marketing due to consumers relying so heavily on their smartphones. The creation of quality content needs to be a focus whether it is on the company blog or on a relevant industry publication. Podcasting has become a great way to create content that is in-depth in a reasonable amount of time for almost free. The right guests on a podcast can help legitimize a new company which is a huge battle for those just starting out.
Employee Turnover is High
Startup life is not for everyone which can lead to a high level of employee turnover. The long hours or high stress environment is too much for some that want a more relaxing professional life. The appeal of startups to younger professionals can be that of trying to climb the corporate ladder in a faster fashion than at an established corporation. This leads quite a few employees to leave for other opportunities after they have built their resume.
Client Retention is Low
Client retention numbers need to stay as high as possible as this is what huge companies are built off of. The customer’s experience needs to be a focus especially when retention numbers are low. There could be obvious reasons for this like missing deadlines for a marketing agency or making mistakes on orders for an eCommerce business. Invest in a CRM platform as this can help increase the percentage of customers that continually work with the startup.
Take the time to address the issues your company currently has during its infancy. You would be surprised the peace of mind it creates when you have a plan in place for common problems that are sure to occur at some point.