Challenges faced by Startups
Navigating the Complex Challenges of Startups and Paving the Way for Sustainable Success
Challenges faced by Startups
Starting a business can be thrilling but the process to success is a devil of a job, it requires competitive business plan, skills, growth strategies, proper finance management and what not. Studies show that, 9 out of 10 startups fail mainly because of no proper research before taking a head start.
Nonetheless, there are numerous prominent examples of startups that started really small and grew into world leading brands. Apple, Amazon, Pepsi, Starbucks have lifting success stories which reveals their struggles and strategies to success, it illustrates that, without a clear plan of action and hard work, starting a business is like constructing a castle in the air.

Challenges faced by Startups
Lets deep dive into the troubles faced by startups.
- Poor Finance Management
Overcoming these challenges: To avoid complications related to finances, proper cash flow forecast in crucial. Accurate pricing of your services or products derives the profit and loss of the company.
- Limited Access to Tools and Technology
Overcoming these challenges: Startups exploring new technologies gain advantages by partnering with a tech collaborator or by hiring in-house IT experts, they help in Data Analytics; by using right data analytics tools, they use latest technologies that help every department for efficient outcome. Implementation of cloud computing is another benefit, it cuts the cost of IT server maintenance and hardware by securely managing, transferring and storing data over cloud.
- ESG Reporting
Overcoming these challenges: For proficient ESG reporting systems, startups must emphasize on understanding these reporting strategies, establishing connections with other businesses to learn from them, or hiring an accountant which helps to assist ESG reporting along with other financial reporting.
- Cost Pressure
Overcoming these challenges: With the diversification strategies, risk assessment, managing utility cost, boosting fiscal resilience, focusing on remote operations and strategic marketing startup can overcome these stumbling blocks.
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- Expertise Gap
Overcoming these challenges: To remove the expertise gap, picking up the right staff is a must, even if it costs you some extra bucks, another thing that can be done to overcome this challenge is developing talent within the firm by it is proper mentoring and training. It is of utmost importance that your first hired team members comprehend the vision behind your business.
- Fear of Taking Risks
Overcoming these challenges: For innovation startups must tolerate a certain amount of risk, by conducting through market research and look for economic trends, Pinpointing target market niches where startups can scale and expand, and building relationship with other service providers, this helps them in evolving their business.
- Data Security and Compliance
Overcoming these challenges: By hiring security experts they can overcome this hurdle, yet if its too pricey for the firm then they must educate the employees about strong access controls, data encryptions, strong passwords, using multi-factor authentication and backing up data are key points that can foster trust and prevent legal issues.
- Flexibility in Business and Risk Management
Overcoming these challenges: A proficient and flexible business plan is the main pillar to a startup success. The business model must be flexible to changing market conditions, trends and consumer behavior. Similarly, the evaluation of risks that identifies possible setbacks and scenario planning which can minimize unexpected barriers in future.
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How a Solid Finance and Accounting Foundation Supports Startups Growth
Effective accounting and finance practices are fundamental to startup growth, they are much vast then just managing cashflows. Most of the startups Lags behind because of not underlining the accounting and finance duties. At times, these practices are tricky and can cost an arm and leg, this may explain why beginners often overlook them. In that case, hiring an external finance and business partners (FB&A) can also be helpful and less expensive than hiring in house experts. Some key ractices emphasized by finance and accounting professionals include,
- Bookkeeping
It is the process of collecting, analysing and managing data of financial transactions. Its helps in financial accuracy and ensuring compliance with laws.
- Tax Compliance Essentials
Helps startups understand the tax regulations and requirements which keep them away from penalties
- Managing CapEx and Opex
By Proficiently controlling the Capex and Opex, Startups can evaluate if their investments are heading in the right direction.
- Strategic Budgeting
By forecasting the future Revenues, startups can plan a budget that help capitalize on growth opportunities.
- Bringing on new investors
With more scope and exposure in market, finance experts can bring on potential investors.
- Professional support
With the finance experts, entrepreneurs can have a complete professional guidance about their financial framework, this helps them identify their flaws and help in informed decision making.
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7S Model for Startup Success
The 7s model is very widely known for its evaluating and enhancing organizational effectiveness. This model can also be profitable for startups to help them understand the steps to victory. According to this model; Strategy, Structure, Systems, Skills, Staff, Style, and Shared values are interconnected to each other, If one element
changes, it will influence others, subsequently affecting overall efficiency.
By coordinating startup business models with the 7S model entrepreneurs can establish an innovative organization. Airbnb, Spotify and Uber are a few of the examples of leading businesses that used the 7s model in their commercial achievement. Let’s examine how this 7s model can assist startups,


7S Model for Startup Success
The 7s model is very widely known for its evaluating and enhancing organizational effectiveness. This model can also be profitable for startups to help them understand the steps to victory. According to this model; Strategy, Structure, Systems, Skills, Staff, Style, and Shared values are interconnected to each other, If one element
changes, it will influence others, subsequently affecting overall efficiency.
By coordinating startup business models with the 7S model entrepreneurs can establish an innovative organization. Airbnb, Spotify and Uber are a few of the examples of leading businesses that used the 7s model in their commercial achievement. Let’s examine how this 7s model can assist startups,
Meet the Expert

Sidra Salman
Managing Partner
Sidra Salman, Managing Partner at SS&Co, leading fintech innovation with trust and expertise.