4 Tips to Protect Your Startup from Common Pitfalls - HotThemes

4 Tips to Protect Your Startup from Common Pitfalls

Launching a startup is never an easy process, even when you think your business model is so basic that it will require very little effort. There are always unexpected steps and obstacles along the way, and some of them might have you second-guessing the endeavour altogether. However, with the right preparation and approach, you can remain resilient and continue to persist and progress through even the most challenging circumstances. Luckily, most business problems can be easily solved with a bit of research and the willpower needed to do the work. Knowing that, here are 4 tips you can use to safeguard your company from the most common pitfalls that affect startups.

1. Use an Online Brand Protection Service

Online brand protection services will keep watch over your company's web presence as a whole to instantly recognize and notify you when someone has published potentially defaming content about your business on the internet. Utilizing these services will keep you from having to continually run brand-related searches on various platforms in order to keep track of your startup's reputation independently.

2. Have Multiple Payment Processors

While you might not want to think about the possibility of having your financial accounts frozen or suspended, this is an unfortunate occurrence that plagues some startups. You may believe that you won't have anything to worry about as long as you're operating legitimately, but fraudulent complaints, false flags, and other unforeseen issues can lead to payment processors like PayPal freezing your funds for anywhere from 21 days to 6 months. Safeguard yourself against not being able to accept payments by having open accounts with a few different payment processors.

3. Create a Budget that Allows for Adequate Cashflow

Cashflow problems are another common issue that startups face. You can prevent this problem by creating a detailed budget that accounts for every possible expense. You could also apply for financing to lighten the out-of-pocket expenditure that you're burdened with on a monthly basis. However, be careful not to overburden the business with debt early on, as that could create a stumbling block in and of itself.

4. Invest in Promotion and Expansion

One step every startup should take to build maximum momentum is re-investing in advertising and promotional efforts that will increase sales and profits. By generating more revenue, you can increase available capital, persuade investors, and use the power of social engineering to capture the attention of more consumers through sharing.

Don't Forget to Optimize Your Processes

Finally, another step you can take to ensure your business faces a low chance of failure or hardship is to optimize and refine all of your operational processes. Conduct thorough comparisons to choose the right software tools and study the art of process mapping to really dive deep into the inner workings of your company. The more efficiently and proficiently you're able to operate on a daily basis, the less likely you'll be to face deficiencies that could bring down your bottom line.