The Challenges of Starting a Small Company

1.

The Challenges of Starting
a Small Company
A guide to the most common obstacles for new business
owners

2.

PART
Financial Hurdles
ONE
Managing money is the biggest challenge for any new
startup. Without cash, the business cannot survive.

3.

Money Matters
1. Limited Capital
New companies often start with very little money.
You must decide carefully where to spend.
2. Poor Cash Flow
Sometimes you have customers, but they pay late.
You still need to pay your bills and salaries on
time.

4.

Where Does the Money Go?
Estimated breakdown of initial costs for a standard small office business:

5.

PART TWO
People and Team
Your company is only as good as the people who work
there. Finding the right talent is a major task.

6.

Recruiting Talent
Salary Competition
The Right People
Small businesses cannot always offer high
In a small team, one "bad" employee can
salaries like big tech companies. You must
hurt the whole company. You need people
offer other benefits.
who share your vision.

7.

The Startup Spirit
Multitasking is Key
In a big company, you have one job. In a small
company, you might be the accountant, the
cleaner, and the salesperson all in one day.
Everyone on the team must be flexible and ready
to learn new skills quickly.

8.

PART
Market Pressures
THREE
The world is full of famous brands. How can a small
business stand out and win customers?

9.

Fighting the Giants
Price Wars
Brand Loyalty
Marketing Budget
Big brands buy in bulk, so
Customers often buy what
A small business has a
they can sell cheaper.
they know. It takes time
tiny budget for ads
Small shops have higher
to build trust with a new
compared to global
costs.
name.
corporations.

10.

Standing Out
Focus on Quality
Small businesses can win by being better, not
cheaper. Personal service is your best option.
Word of Mouth
Happy customers tell their friends. This is the
most powerful (and free) marketing for a
startup.

11.

The Entrepreneur's Journey
Phase 1
Phase 3
Idea and Market
Open day
Research
Phase 2
Phase 4
Finding Funding and
Sustainable Growth
Team

12.

Q&A
Thank you for your time. Do you have any questions about starting a
business?