The truth of the matter is that not every startup is going to make it. Sure, some will become the next big thing, and many others will become successful businesses that will last the long run, but plenty will fail and dissolve. When you are starting your own startup, you need to do everything in your power to prepare it for success and protect it from threats. But identifying the right threats can be a challenge. Here are three of the top threats every new startup faces!
Reputational Challenges
With any business, reputation is a major player in success. But for startups, who lack the track record and customer and client loyalty of longer standing businesses, a reputational challenge can quickly spell disaster. A reputational challenge is any sort of reputational issue surrounding your company, like a negative news article, legal charges, protests, etc. When your startup faces reputational challenges, it is already making you fight an uphill battle. First and foremost, make sure that your startup is operating ethically and morally responsibly, and consider investing in a public relations agency if you worry you won’t be able to ride it out on your own.
Cybersecurity Risks
There are few things as important to business in the 21st century as cybersecurity. This is only truer when considering startups, who may lack the resources of major corporations to pay for the most expensive and extensive cybersecurity networks available. But on top of this, if your startup (like many others) utilizes a remote workforce, your data is even more at risk. Data security can be even more tricky with a remote workforce. Since your workforce will have to be using the internet to send sensitive data back and forth to perform their work, you are going to need a robust system to protect your startup. Work with a cybersecurity professional to find out the best solution for your startup.
Lack of Planning
A startup, just like any other business venture, needs to be treated with the weight and gravitas that it deserves. Many people hop into launching a startup without proper planning about their vision and where they want this business to go. Do you want to run it for a few years, and then sell it to a major player in your industry? Do you want to develop a business that will last for decades and continue to expand? These are all questions you need to consider and plan for before getting started so that you can make decisions with the long-term vision in sight.
Starting a startup is never easy. In fact, launching and growing the success of a startup may be one of the biggest business challenges you can take on. If you are going to launch a startup, make sure you handle these three top threats that every startup faces, and you will be ready for most anything.
Read this next: What Are the Best Places to Start a Tech Company?
Are you a startup accelerator or a corporate incubator?
Find out how easy it is to manage your startups and cohorts. Click HERE.