The Challenges of Running a Startup Company

There is no doubt that running a startup company is indeed challenging. This is because you need to start from scratch. You need to set up all the basics and fundamentals of your business. You need to make a name for your company. To understand this reality, we suggest you continue to read on.

Low Profitability

The number one thing which makes a startup company challenging is that it has a low profitability. However, you don’t need to worry about this or get too stressed with it. It is because this only happens during the early years of startups. In the long run, the profitability rates start to increase slowly. You just need to work hard, have the right people by your side, and know the different things about running a business, such as managing the financial matters, working on your marketing campaign, and efficiently hiring the right people to work for you.

Chances of Bankruptcy

The truth about startup companies is that these have a high turnover rate. What we mean by high turnover rate here is that the possibility of it being bankrupt is high. This is due to the low profitability and undeniably stiff competition in the market. The more established brands usually have the upper hand when it comes to competition, which is why newcomers in the industry usually don’t stand a chance against the big corporations.


The truth about running a startup company is that everything is unstable. From the accounting and financial side, to the marketing campaign, and to the people that are working for you, everything is unstable. This is because everything is just starting. You are still building up your experience, as well as the experiences of your employees. It’s all a learning process, which is why you don’t have to worry about this. Time will pass and everything will be stable.

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