5 difficulties that new startups encounter in the technology market

Every year, the number of new startups in the world grows. And although they all emerge intending to revolutionize the market and become true unicorns, many are not prepared for the challenges they will face in this environment.

That is why, according to data released by the Brazilian Institute of Tax Planning (IBPT), 15.4% of startups shut down in their first year of life, and 41.9% of them close between their first and fifth year.

These data show that to succeed in the technological market, it is necessary to anticipate and understand what difficulties will be imposed on your business. Thus, it is possible to prepare and find solutions more easily and calmly.

With this in mind, we have prepared special content that will help you a lot in this time of study and anticipation. Let’s, together, understand what are the main difficulties that new startups face and how to overcome them?

Preparation is the key to success for new startups

A tight timing and budget are two fairly common difficulties among new startups. But those who wish to succeed in such a competitive environment must be aware that they will face other challenges.

First, you need to know that being prepared is very important. It is because in this way you anticipate possible problems and difficulties to solve them practically, or even avoid them altogether. This makes it easier to embark on a journey of many satisfying results.

We have listed some of the main challenges that you may encounter on your path and how to overcome them. Check it out:

• Financial Management

In the beginning, with a tight budget, startups need to have great financial control. Knowing how to prioritize investments, for example, is an indispensable action, after all, this is how we avoid getting into debts that can destroy your business before it even starts.

So first of all, make very thorough planning of everything you intend to do, understand how much you need, and organize these demands according to urgency. In this way, it is possible to advance through the stages little by little. As you grow, the more investments you can make.

• Know-how

Although it is growing more and more in Brazil, the startup universe is still not fully known and explored by the population. This creates a lack of qualified professionals who know how to work effectively in this type of environment.

Therefore, it is important to be prepared to provide this kind of training. Choosing a person with experience in the area, besides being more expensive, is not synonymous with success. But when you train early-stage employees, not only will they grow with your startup, but they will also fit into the culture you intend to create more assertively.

• Planning definition and differential

Having a clear, simple, and assertive definition of the objective and differential of your business is extremely important. This is because this is how you convince people that your startup is worth investing in. Especially in the initial phase, when your enterprise is still new and does not have many references, passing on this kind of authority is indispensable.

For this, it is necessary that the planning that is done is done very carefully. Focus on the details, don’t rush this very important step, and keep in mind that nothing is written in stone. You can (and certainly will need to), over time, adapt your business.

• Market Competition

In such a competitive environment, it can be difficult to compete with new startups while the traditional market remains so strong. This is when you put the previous step into action: with well-done planning, it is easier to stand out and gain more attention.

Remember that a startup is known for its innovation. Therefore, be sure to invest, also, in technological actions. Websites, applications, back-office support: all these have a positive influence. And if you need help, contact experts on the subject, always taking into account the list of priorities in your budget.

• Pressure

When you start a new business, besides suffering from the uncertainty of the future of the enterprise, you also suffer from the market, customers, and even your partner’s pressure. That is why it is important to know how to set limits: it is normal to make concessions, but within what is necessary and healthy.

Be careful not to give in to pressure in a way that harms your startup in the long run. Keep in mind what your company’s goal and differentiator is, and be guided by the culture you want to create among employees.

And how do you overcome all these challenges?

As we have already said, having good planning is an essential step for you to know how to succeed when facing the difficulties of investing in a startup in Brazil. But you can also count on the support of professionals specialized in this universe to avoid problems.

Code studios, for example, can help you develop a professional application, as well as functional web applications and the entire organization of your back office.

And if you don’t know how to include all this investment in your tight budget, don’t worry: we have made available complete and free material on the subject that will help you organize yourself strategically and efficiently. Be sure to check it out!