This statement communicates very well the world of start-ups, especially in Kenya today. It’s about survival for the fittest. The most flexible, the one who has a strategy and is constantly evaluating it, vis-à-vis the reality on the ground. Some of the challenges start-ups need to reckon with include:

1 . Unrelenting competition :

Start-ups get into very vibrant environments and are more likely to be punching above their weight more than ever before.

2 . Winning the trust of customers :

Customers are the power behind a business’s success, and more so start-ups. Word of mouth and online engagement with the business pushes its visibility. Gaining customer trust will definitely win their loyalty.

3 . Creating a sustainable culture :

While many start-ups fail due to lack of development of a viable strategy and all that goes with it, some go astray because they’re missing a clear, unifying purpose and the right environment for people to perform their best. “Great companies are built by great people” – not great ideas, says serial entrepreneur Rob Kornblum.

4 . Picking suitable partnerships :

Partnerships are important for start-ups because they give them the chance to bridge the expertise and knowledge gap. They are also good for bringing in more cash, reducing costs, creating more business opportunities and giving moral support as well as new perspectives as the business grows. Some are also opportunities for potential tax breaks.

5 . Having unsustainable or unrealistic expectations :

This happens due to lack of knowledge and understanding of how businesses work. Starting a business isn’t easy, you don’t simply copy the success of other businesses, which is what many people tend to think. Failure to plan, knowledge gaps, ineffective marketing and financial management are a few of the challenges that new businesses may not put into consideration. This failure by the leadership means expectations are not met.

6 . Financial Management :

Control of expenses is important so the business can reserve money for important growth initiatives. The profit and loss statement is very important for start-ups as it summarizes the revenue, cost of sales, gross margin and operating expenses incurred in a specific period of time.

Start-ups remain important for the experience and opportunities to learn, and there are no challenges that are insurmountable with the right support and strategies well developed and laid out.

The author is a Partner Consultant in the Strategy Division at BI. You can reach her on joyce.waithira@brandintegrated.com