What is the biggest challenge for new businesses?

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The biggest challenge for new businesses, especially startups in the making, is multifaceted and complex, many would say:
1. Validating the idea and the market:
* Finding a real problem: Many startups fail because they create solutions to non-existent or irrelevant problems.
* Validating the market: It is crucial to understand whether there is sufficient demand for the product or service, who the customers are and whether they are willing to pay for it.
* Constant adaptation: The market is dynamic, and the ability to adapt to changes and customer feedback is essential.
2. Financial management:
* Obtaining capital: Obtaining initial financing and maintaining cash flow is a major obstacle, especially for early-stage startups.
* Financial planning: A lack of financial planning and control can lead to overspending and bankruptcy.
* Profitability: Finding a business model that generates sustainable revenue and profit is essential.
3. Assembling and managing the team:
* Attracting talent: Hiring qualified and engaged professionals is a challenge, especially in a competitive market.
* People management: Leading and motivating the team, creating a positive organizational culture, and dealing with conflict are crucial skills.
* Scalability: The team needs to be able to grow and adapt to the startup’s needs as it expands.
4. Bureaucracy and regulation:
* Tax complexity: The tax system is complex and onerous, and lack of knowledge can lead to errors and fines.
* Regulation: Complying with the laws and regulations specific to the startup’s industry can be a challenge.
* Bureaucracy: Excessive bureaucracy can make it difficult to open and operate a company.
5. Marketing and sales:
* Brand building: Creating a strong and recognizable brand is essential to attract customers and stand out from the competition.
* Digital marketing: Mastering digital marketing tools to reach the target audience and generate leads is essential.
* Sales: Developing an efficient and scalable sales process is crucial to the startup’s growth.
6. Market uncertainties:
* Competition: The market is highly competitive, and startups need to find ways to differentiate themselves and stand out.
* Technological changes: Rapid technological developments can quickly make products and services obsolete.
* Economic instability: Economic instability can affect consumption and investment, making it difficult for startups to grow.
To overcome these challenges, startups need to:
* Have a clear vision and a solid business plan.
* Seek mentorship and support from other entrepreneurs and experts.
* Be resilient and persistent, learning from mistakes and adapting to changes.
* Focus on innovation and creating value for customers.
By facing these challenges with planning, resilience and adaptability, startups increase their chances of success and building solid, long-lasting businesses.

But in our experience, the main issues that stand out are poor management, lack of vision and creation of an organizational culture, problems with the notion of temporality and focus, temporality refers to the founders having no notion of time and no defined objectives, the lack of optimization of resources also stands out as a problem caused by the founders.

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