Top 8 Problems Facing Startups Today


People see technological breakthroughs as something that could revolutionize the entire world and open people up to more abundant opportunities. Because of this fact, more funds and resources are being readily made available for the beginning of feasible startups and businesses.

Each one of you should take your own decisions based on your due diligence, and other critical factors.

The following review will provide a number of examples that every entrepreneur should try to avoid when starting a venture

1) Having one founder – Startups in Houston should have more than one founder. The reason for this is credibility. Having at least two founders helps to diversify the work. It’s also a good thing if the founders are from different backgrounds, so that each one of them has something different to add to the mix.

Moreover, investments can be difficult to pitch with only one founder. With this in mind, potential investors might feel as though your ideas are not good enough. From a psychological stand point, when you are involved in a startup there are going to be more bad days than good days (yes we know, it is unfortunate

2) Wrong Location – Location is key. If you are located in the middle of nowhere it will be very hard not only to attract talent, but also the investment that will help you to build and launch your company. If you have an amazing idea and plan on executing it the best way possible, try to move to a bigger city where there is more action happening. In the beginning it will be hard to get used to a new city and to all the new changes, but you can certainly believe that in the long run it will be worth the struggle.

Some of the best cities to start a company are Silicon Valley, Boston, Seattle, Austin, Houston, Denver, and New York.

3) Doing too many things at once – One of the biggest issues that startups have is trying to do too many things at once. This creates distractions and focuses less on the tasks that need to get done. Do not try to go big right away. Make something small and make it better than anyone else. Once you have built your initial idea, then is the time to start adding new features. The easier you make it for the public, the better; otherwise they will get overwhelmed and won’t understand what you are doing.

4) Hiring C- employees – On average it can take around 2 to 3 months to hire a person depending on your location. We advise you to be on the look 24/7 and never stop interviewing people. Talent is hard to find, but not impossible.

In the event you are a startup involved with the tech industry, make sure that you are hiring the best programmers. Before hiring them review projects that they have been working on, see case studies and ask for a first hand account from previous customers. This will help you in making an informed decision.

5) Launching too soon or too late – If a startup launches their project too soon, there could be a possibility that the product is not complete, and will not satisfy consumers. The main problem here is that if the project is not finished, it will completely turn off its users and as a consequence, people will not come back. On the other hand, you may have the problem of launching too late. This issue not only gives a bad image to the company, but since you have not been able to accomplish your milestones, it also creates a hole in the company’s pockets because keeping the lights on is not cheap.

6) Raising more or less then the capital needed – Startups Houston make this type of mistake all of the time. This business plan should be the company’s guidelines when entering a round of financing. Keep track of your finances, and know when you are running out of money. Be sure to plan accordingly so that you can raise a little over the money that you need (in case of surprises) to carry your company until the next round of financing.

7) Lack of budgets – When startups raise money they sometimes forget that money is very easy to burn. Even though you might feel like you have everything covered that will most likely not be the case. There are always unexpected expenses that come along the way. With this in mind, we highly encourage you to keep all the expenses as low as possible. Try to negotiate every single invoice, and extend as much as you can for the sake of your company’s cash flow..

8) Investors with lack of knowledge and expertise- Raising money is a tough battle. Dead money is the kind of investment that comes from a person who does not give an added value to the company. A good example of this would be startups Houston who only bring in any of their friends or family members at an early stage. These kinds of investors will not contribute the drive needed to have a successful startup. This can also turn off angel investors and venture capital firms that might want to jump in at a later round of financing. Another piece of advice is to not have a large number of investors at the Seed Round (first round of financing).


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