Startups have really had it rough this past year. 2020 hit the economy hard, and no one even dares to think of starting something new. The ones that actually do are dreading the economy collapsing, which will definitely have an impact of their revenue, too.
However, there is a silver lining out there, you just need to follow a couple of steps, and success is right around the corner. One other thing that is right around the corner is a perfect coworking space, which will certainly be of great help, making all your dream job ideas come to life.
How? Well, let’s just see.
Challenges When Starting a Business
There are several challenges you might encounter when starting a business. But, of course, those are challenges, meant to be overcome, right?
Right.
Let’s see what obstacles fate might put before you.
1) Financing
Money makes the world go round, isn’t that how the saying goes?
This may not be true for all spheres of life, but what is certain is that it greatly affects the start and the success of every business. That is why financing is the number one problem many starting companies encounter. Unless you have starting capital, making that initial investment a reality can be quite troublesome.
It may happen that you get incredibly lucky and cash in your effort and your product straight away, but that is very rare. Funding issues can hit any startup hard, and remove the focus from what is really important, such as developing new merchandise, hiring new staff, and finding a proper office.
There is a plethora of financial conundrums you need to think about first when starting off. You need starting capital to fund product development, office space, marketing and so many other things that certainly aren’t cheap.
However, if you start thinking about financial problems so soon, it may be completely counterproductive. So it is important to solve these problems before there arise, that is, before you even open your startup.
There are many ways in which you can try to find the funding you need, one of them being venture capital funds. Those are companies that invest in startups in the very beginning in exchange for equity, or ownership stake. So, if your idea is good enough, you will have no problems finding your initial investment there.
2) Expectations and Planning
Many startups have succumbed to the world of business’s worst trap – unrealistic expectations. In order to succeed, you need to set your priorities straight and set realistic goals for yourself and your company. Many startups make that initial mistake after a “first big hit.” But, that can have a detrimental effect on the future of your company.
A lot of startups relish in the feeling of excitement of a first big hit, not realizing that that bubble could easily burst, leaving the company in substantial debt, which can ultimately lead to closing it for good. In order to create long-term success, you need to think about sustainability.
Set your priorities straight and think about all the factors on the market. First you have to think carefully about available resources, growth potential and you need to be able to see the whole picture clearly, the beginning, the middle and the end.
Many people disregard planning, even though it is the most essential part of every business. Lack of planning and unrealistic expectations go hand in hand, actually. You need to cover all the areas such as sales, staff, and development.
In addition, you need to think about all the “mishaps” that can happen, and possible solutions, too. If things start taking a turn for the worse, you need to ask yourself what is going to be your plan of action. Especially because the number one rule of business is that you need to be prepared to fail, if you want to succeed. But in order to succeed, you need to cover all the failing options and prepare a way of getting out of tricky situations.
3) Staff
Finding a perfect employee that can carry out all your ideas and plans and make them come to life is very difficult, indeed. The success of your business depends a great deal on the people you hire. These people should have similar capabilities and similar focus.
Selecting a perfect candidate can be problematic, because you can never know whether there are going to be the right fit for your team. Many candidates seem perfect on paper, but just don’t seem to be able to integrate properly into the community. Whereas some that seem “less” perfect turn out to be exactly what you have been looking for.
Yes, finding the right candidate can take up a lot of your time that could be spent on other “more important things.” However, if you think about it, not making the right choice can cause serious setbacks for your company, and that is the last thing you need, is it not?
In order to find a good candidate, you first need to know exactly what you are looking for. So, prepare some sort of strategy and see what your priorities while hiring will be.
4) Competition
One thing you need to remember is that you are not alone in this game. There are many other players just like you, wanting a piece of the cake. So be prepared that your competitors are going to be fierce, and ruthless. This is especially true among startups. Everybody wants to succeed, everybody wants to get their product out on the market. So, be prepared.
There is no margin for error, and, even if there is, it is a very small one. Yes, this puts a lot of pressure on your overburdened mind already, but that’s the way the cookie crumbles. In the end, competition is the backbone of capitalism, so you have to be prepared for everything. It makes you think faster, and fight. So, actually, competition is not a negative thing. It makes us work harder, and be more proactive.
In order to take the competition down, you need to find more ways of improving your idea and your business and that is not a bad thing. So, change your mindset. Don’t look at the competition as something negative. Instead, look at it as something that will stimulate you to be better, to excel and go beyond your wildest expectations.
5) Attracting Customers
Customers are the ones that will make or break your company. They are the ones that have the final say in your company’s survival. That is why attracting customers is going to be the most difficult endeavor and needs to be your main priority.
In order for your business to succeed you need to win your potential customers over and earn their trust. You need to present yourself as a serious, customer-centered business. With the overall impact social media have today, good word-of-mouth spreads fast, but the bad one spreads even faster, so you need to approach this very carefully and systematically.
How Can Coworking Rise up to the Challenge?
Many startup owners fail to realize the benefits of a co shared office space that can actually solve many of the aforementioned challenges they encounter. The benefits of working and renting a coworking space are truly numerous, and have helped a lot of startup companies in the beginning, paving their way towards success. Let’s see how communal office space can solve your startup problems.
1) Affordable Office Space
If you are a startup with a couple of employees already, working at home will no longer be a possibility. However, renting a large scale office space just doesn’t pay off. This is where coworking companies come into the picture.
Renting a space in a coworking company is significantly cheaper. That way, you are able to cut your costs right in the beginning. It provides you with the space you need with all the necessary equipment. Many coworking companies provide you with a personal assistant, which will definitely make some administrative issues a lot easier.
High-speed Internet, state of the art computers, everything at your disposal. If you are in a need of a meeting, you can just book an event space every co shared office space is bound to have. Everything a big office space would have, but cheaper.
2) Networking Opportunities
One of the biggest benefits of a communal work space is that you are surrounded by people from a variety of business areas you can connect with. This is advantageous for many reasons.
New Ideas
When surrounded by like-minded individuals, you are more likely to find inspiration to do your job. When you are stuck at some seemingly unsolvable problem, you can easily get some advice on how to solve it and move on. Everybody there is in the same pickle as you, and many of them are willing to help. You can also find assistance with some issues you may never thought you could have. As a consequence, you will definitely be more informed and up to speed with current trends.
Aspiring Talents
Coworking spaces are full of lone riders, freelancers, sitting there, doing their thing. You have a chance to meet some of the most creative people that could help you if they became a part of your team. You can pick a perfect employee directly from the talent pool. The best thing about it is that you can see them at work, you can see firsthand what they are capable of. No risks there.
Also, you can see if they are able to fit in a team by the way they are fitting into the coworking community. The coworking company is actually doing all the work for you. The rest is up to you. You need to make your company a desirable place of work, so, you have to make an effort too. Coworking community can help with that, too. You can learn a lot about managing a company there.
Insight into the Competition
Being surrounded by people doing the same thing as you gives you the upper hand. You can observe the competition up close and see what they are dealing with. This can come as a tremendous asset.
When working from home, you have no idea about what breakthroughs are happening in the business world. There, you can see them before everybody else, you can actually see them come to existence.
However, the negative side to it is that you can be the one making the breakthroughs and others being the ones that observe you and learn from you. However, as it has been previously mentioned, you shouldn’t look at competition as something bad. Competition is what makes us work harder than ever before, achieving things we never thought we could ever possibly do.
3) More Clients
One of many perks of doing your business at a coworking office space is that it can also help you connect with clients. You are surrounded by a variety of different professionals, which will give you a good insight into different spheres of business and help you connect with people from different niches. You will expand your client list in no time.
Another advantage of working at an official working space, is that, when it comes to clients, by having a proper office, you will come across as more serious. More companies will be willing to do business with you, because you will appear more accessible and trustworthy.
And, let’s face it, appearances are everything and first impressions seal the deal.
In order to get your idea out there, you just need to be heard of, and there is no better space than this one. Many coworking spaces have communal areas where everybody can communicate freely with one another, sharing their ideas and business plans. Many successful partnerships have been made exactly here.
4) Internet Security
One thing we all have to be aware of is the danger of somebody hacking into your data and stealing all the information you have in your base. If this happens, it could be completely devastating for your business.
By being a part of a coworking community, you get proper protection from any type of data being compromised. All coworking companies are equipped with the latest Internet security services, so you can put your mind to ease when working there, they will take care of everything and hold the fort, allowing no unauthorized access.