Problems are going to occur when it comes to a startup as all businesses tend to have growing pains in their infancy. The ways that founders and staff react to these issues can have long term implications on the business and its brand.
There are some issues due to growth while others can be out of control of the staff and founders. The most important thing that a business can do is to learn from mistakes or missteps and ensure that they do not happen again. The following issues are common to startups and tips on how to deal with these issues.
Cash Flow Low Due To High Order Numbers
Those businesses that are producing products might have problems with cash flow if their payment system is not structured properly. Most companies doing business with a startup will pay half up front when asked as cash flow on a huge order can be a huge problem.
This cash flow can be used to pay employee salaries as well as other bills that occur on a monthly basis. Another option is taking out a loan but there are plenty of misconceptions about these small business loans.
Cash flow issues can cripple a business quite quickly as most manufacturers and other contractors will not be willing to get paid later.
A Culture That Plays Too Hard
The startup world has been inundated with the phrase “work hard and play harder” but this can become an issue. A company happy hour getting out of hand can cripple production the next day at work and increases the chances of HR getting involved.
Alcohol increases the number of harassment claims in an office so keeping the party to a reasonable amount of wildness should be considered. Substance abuse can become rampant in an office with a party hard culture and this can be dangerous for a startup.
An addict could sell company secrets or client information which can destroy long standing business relationships. Substance abuse of any kind cannot be tolerated so enforce a strict policy regardless of how productive an employee might be.
Employee Turnover
The startup world can be extremely stressful with long days and tight deadlines. This can end up becoming a problem as employee turnover is an issue with any business. All new employees are going to need to be trained before they are productive at all which means a few thousand dollars being spent up front.
This does not guarantee in any way that the employee will be as productive as the person they have replaced. Perks of working a job can reduce this turnover with things like daily lunch being provided for staff. A office gym is another great perk that will cost money up front but will reduce turnover thus paying for itself.
Staff is Resisting Change
A growing company will be constantly changing in its procedures as well as other processes. There are going to be staff that are extremely opposed to change as their role might be reduced or their job description could have changed. It is important to thwart complaining in the office about these changes.
One person bringing negative energy into an office can have devastating impacts on the morale of the staff as a whole. Give a verbal warning to offenders and the next strike means they will be written up. Negative opinions about your job or the company should be kept private.
As you can see these are just a few of the many issues startups face daily as well as options you have to deal with them. Proactive thinking can help reduce the number of issues encountered but cannot prevent everything!