6 Common Threats To Your Startup’s Success

It’s tempting to think that the success of your startup rests entirely in your hands. As in, if you’re unable to come up with strong ideas, execute them well, and have an inch of patience, then success will come your way. Alas, this isn’t how the real world works. It’s much more complicated than what can be diluted into a simple formula or whatever — there are too many variables, and threats, for that to be the case. Sometimes, the threat is just a sign of the times, at others, they’re more malicious. The important thing is that you’re aware of them. Below, we take a look at six of the most common threats that startups face. Do your best to ensure your business is kept safe from them!

Changing Tides

There was once upon a time when the world was stable. Change came, but boy, it was slow — people would live and die with just a short shift in how things are. Imagine that! It’s inconceivable in today’s age, when things change all the time. What’s fashionable today could be out of fashion tomorrow, and there’s nothing you can do about it. When it comes to your startup, you need to look at through the lens of change — are your products and services something that might be left behind by tomorrow’s world?

Rival Companies

You want your business to be a success, but here’s the thing: every other company wants to be successful too. When you’re in the planning stage of your startup, part of your research must include finding out if there are any similar companies operating in the area. Even if there’s not, that doesn’t mean that there won’t be in the future. Indeed, if you’re successful, you’ll find copycat services popping up. The best way to beat them is to simply do the best work that you can do. If you’re number one, you’ll always be able to keep your customers.

Data Issues

The world is changing. In a blink of an eye, we’ve gone from a society that was based on, you know, real objects, to a world that’s based on code, on data. And unfortunately, this has given rise to a whole new type of crime, one that has developed into something of a cat and mouse game between the criminals and cyber defense companies. What does all this mean for your startup? That you need to take your data seriously. There are a million and one ways you can inadvertently let a potential criminal gain access to your sensitive information. Once that’s done, there’ll be able to cause significant damage to your business.

Other Crimes

It’s not just via things like connecting to public wifi networks that can be dangerous for your company either. The systems you have in place when it comes to dealing with your customers can also cause harm. Instances of fraud have been on the rise in recent years, and are becoming increasingly complex, too — it has never been easier for a criminal to steal the identity of a customer, using information that they’ve got from you. Thankfully, there is something you can. Jumio allows identity verification across multiple devices, enabling you to verify the identity of your customer even when they’re not sat right in front of you. By using this system, you can help protect your business and your customers, which is an essential part of building trust.

Cash-Flow Problems

Sometimes, everything can be running smoothly, on the surface. You’re getting a lot of business, reviews are good, and so on. But there’s an issue — your cash situation isn’t as robust as it should be. Perhaps you’ve grown too quickly, and can’t keep up with the added costs to stay operational, or you’re waiting too long for invoices to be paid. While temporary cash-flow issues can be manageable, there can grow into more serious problems if they’re not resolved quickly. Make sure you’re keeping your cash situation at the front of your mind. It’ll prevent you from running into difficulties that can be difficult to get out of.

Legal Threats

You’re just trying to grow your business. All your thoughts are on trying to make things rosier. It’s fair! But alas, there is a right and wrong way to do this, and many startups end up accidentally taking the wrong path. When you’re running a business, it’s imperative that you’re doing everything legally. That means making sure the media on your site, name, copywriting, and so forth are all legally sound.

Don’t have your success interrupted by a legal challenge.

This is a contributed post.