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“CHALLENGES OF NEW BUSINESS START UP, THE UNTOLD STORIES” In a bid to preview this article, I will share with you my views on what a start up is, common challenges experienced and my untold story. I would however start with this quote by Ajaero Tony Martins a successful entrepreneur and investor: "Starting a business is like building a ship and embarking on a voyage, armed with a plan, a map and a team. You will have to sail against storms, unpredictable weather and uncertainty. If your ship sinks, it's either you quit or you swim back to shore, build a new ship and sail again. " A start up is simply a new venture, an organization or a business. Startups are often referred to as Small and Medium Enterprises [SMEs]. There are many definitions of SMEs and these are significantly country specific. SMEs are the bedrock of most economies and they are the key source of economic growth hence they constitute the dominant segment in more countries. In Africa, particularly in Nigeria, they have more than 95% dominance when compared to large multinationals or blue chip companies. Startupers or entrepreneurs as they are usually referred to [in my generation] experience similar challenges in their setup, deployment and continuity. These challenges can be categorized into three [3] major lines i.e. Planning, Financial, Strategy and Implementation. COMMON ISSUES AND CHALLENGES
Planning - this is salient in the conceptualization process of a startup – according to a popular phrase: “failing to plan is a plan in itself to fail”. Planning is critical in the lifecycle of an entrepreneur. Indeed this is a recurring decimal. Why is planning germane? It is critical to plan, by articulating the vision and idea which can be regarded as raw [unrefined]. Most individuals come up with a buzz, a sensation and immediately want to hit the road. The reality is such that there is need for adequate planning. This planning entails, charting a course or direction for an identified need or needs. This challenge is mainly in the process of coherently gathering the thoughts and imaginations associated with an idea to a business plan which needs to be done through a proper feasibility. Another area where startupers experience challenge is FINANCE. In fact for most people this is the most important. Finance is pivotal to the growth or actualization of any idea; it is critically necessary and poses a major challenge for entrepreneurs. I would classify this into two [2] categories i.e. * Lack of startup capital / initial capital
* Lack of access to finance
The lack of initial capital is when there isn’t any fund available for the business particularly a la planning and feasibility which will ultimately lead to other sources of finance. The other category is the lack of adequate structures / enabling systems which make access to finance easy. Thus making most entrepreneurs stuck in the middle having garnered robust implementable information. STRATEGY AND IMPLEMENTATION
Most people assume that this is an easy ride, whereas, strategy and implementation having gone through the stages of planning and access to finance is essential. This is where the thoughts on papers need to be adjusted and appropriated accordingly. This phase portends the ability to make or break any enterprise. Inadequate and improper strategy and implementation are the bane of most startups and this is a major topic of discussion amongst business students and practitioners. OTHER ISSUES:
* Lack of entrepreneurial infrastructure
* Legislation
* Government regulations
* Social cultural factors and intentions
Having articulated some of the challenges which business people face, one begins to wonder what the solutions are. Alas! Unlike the challenges outlined, there are a plethora of solutions which are unique and exclusive to the individual or group concerned. There are also various available resources online, discussion groups, entrepreneurial development schools...
Planning - this is salient in the conceptualization process of a startup – according to a popular phrase: “failing to plan is a plan in itself to fail”. Planning is critical in the lifecycle of an entrepreneur. Indeed this is a recurring decimal. Why is planning germane? It is critical to plan, by articulating the vision and idea which can be regarded as raw [unrefined]. Most individuals come up with a buzz, a sensation and immediately want to hit the road. The reality is such that there is need for adequate planning. This planning entails, charting a course or direction for an identified need or needs. This challenge is mainly in the process of coherently gathering the thoughts and imaginations associated with an idea to a business plan which needs to be done through a proper feasibility. Another area where startupers experience challenge is FINANCE. In fact for most people this is the most important. Finance is pivotal to the growth or actualization of any idea; it is critically necessary and poses a major challenge for entrepreneurs. I would classify this into two [2] categories i.e. * Lack of startup capital / initial capital
* Lack of access to finance
The lack of initial capital is when there isn’t any fund available for the business particularly a la planning and feasibility which will ultimately lead to other sources of finance. The other category is the lack of adequate structures / enabling systems which make access to finance easy. Thus making most entrepreneurs stuck in the middle having garnered robust implementable information. STRATEGY AND IMPLEMENTATION
Most people assume that this is an easy ride, whereas, strategy and implementation having gone through the stages of planning and access to finance is essential. This is where the thoughts on papers need to be adjusted and appropriated accordingly. This phase portends the ability to make or break any enterprise. Inadequate and improper strategy and implementation are the bane of most startups and this is a major topic of discussion amongst business students and practitioners. OTHER ISSUES:
* Lack of entrepreneurial infrastructure
* Legislation
* Government regulations
* Social cultural factors and intentions
Having articulated some of the challenges which business people face, one begins to wonder what the solutions are. Alas! Unlike the challenges outlined, there are a plethora of solutions which are unique and exclusive to the individual or group concerned. There are also various available resources online, discussion groups, entrepreneurial development schools...
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