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Evaluating Growth Challenges of a Startup and Overcoming them

Updated: Jan 13, 2022

Written By Saanya Khunger and Tejika Bajaj




'Survival of the Fittest' isn't just true to scientific concepts but even in the booming start-up culture. With new-age and innovative business ideas in their minds, the budding entrepreneurs are trying to cater to the needs of the customers every day and are getting deeply involved in the start-up culture. However, the number of growth challenges faced by start-ups are enormous.


Building something from scratch isn't easy. You can have an innovative business idea ready with you but you are unable to devote enough time to your venture. Another setback can be that you fail to find a team that genuinely wants to put in the effort for the start-up.


Finding suitable and committed candidates is one of the biggest challenges that an entrepreneur faces. The problem can be solved if candidates with fresh talent, who are willing to add value, are recruited. Such potential employees stick around if they see the vision of the company and are given some incentives.

What's even more difficult is to create a customer base and deal with the overgrowing competition in the industry. A start-up with less credibility needs to work on its brand awareness and positioning in order to reach their target audience. The influx of competition is another major challenge a start-up faces when it begins to grow. Most businesses fail to keep up with the market competition and soon the company shuts down its shutters for the public. In an attempt to expand their business operations, most start-ups fail to accommodate the needs of their existing customers thus leading to fatal consequences.


Adding value to customers is one way to overcome these challenges. Apart from this, communicating the USP is equally important. If a company has a unique competitive advantage over others, then it would attract a wider customer base. Extensive investment in marketing channels and constant feedback and iteration helps foster a breeding ground for a loyal consumer base.


Another problem that most start-ups encounter in their roadway to growth is balancing the quality of their products with growth in demand. Start-ups are usually unprepared for the influx of orders and in an attempt to fulfill their demand requirements, they often compromise with the quality of their output, causing serious repercussions in the future. Periodical market research paired with proper planning allows a company to predict the market demand in advance and be prepared for possible changes in consumer behavior.

Not every start-up has a complete business plan ready with managed financials. Financials have to be maintained and investment has to be used in a judicious way. With overgrowing marketing and miscellaneous expenses, it's not easy to maintain financials in the initial stage when the start-up is bootstrapped. During this period, a start-up should monitor its cash flow closely and consider major financial goals in the near future before working on a comprehensive plan.


A start-up surely isn’t an easy way of making profits and demands both time and effort. There is no shortcut for making a start-up a success. For a start-up to thrive, an entrepreneur must tackle the scaling challenges that come in the way of its expansion.

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