3 Of The Most Potent Threats To Your Startup Business

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potent threats to your startup business

It’s no secret that for every successful startup, there are several that fall by the wayside. In fact, research shows that nine out of ten new businesses fail.

If you have a new company, and you’re desperate to beat the odds and join that exclusive club, it’s imperative to be aware of the most potent threats out there.

Cash flow

To run a business, you need to have money. It can be expensive enough to get a company off the ground in the first place, but to keep it going, you’ll need to ensure that you’ve got cash coming in.

If you’re not selling, customer numbers have stalled or dwindled, and you’re not actually making any money once you’ve paid wages, your business won’t be sustainable. To achieve success, it’s essential to make sure that your business is properly financed and that you have plans in place to keep the company afloat during those all-important first few months.

Keep a close eye on your books act quickly if you do spot a shortfall. If you have a seasonal business, it’s particularly important to monitor your cash flow and identify ways to cover costs and outgoings at the same time as trying to bring more money in.


To survive, you need to make a profit. Generating profits isn’t just about closing deals. While it’s incredibly beneficial to try and boost sales and bring in new customers, it’s equally important to focus on efficiency and cost saving.

If you’re making a huge amount of money through sales, but it’s already accounted for via your outgoings, your business isn’t going to be successful. Try and identify ways your company could be more efficient and reduce your overheads.

The less you spend, the more profit you’ll make. Take a look at the IT systems you use, your staffing structure and the deals you have in place with suppliers and distributors. Liaise with IT support agencies to identify ways to streamline the way you work, try and negotiate better deals with suppliers and consider hiring freelancers or offering temporary contracts rather than recruiting full-time members of staff. Take advantage of technology to speed up business processes and save money.


It’s highly unlikely that your new business will be operating in a market where there are no competitors. As a startup, you have to work even harder to lure customers away from bigger fish.

If you can’t compete, you’re going to get swallowed up very quickly, so make sure you understand the market, you have a USP, and you know what you’re facing in terms of rival firms and companies. Outdoing the competition isn’t just about pricing policies and promotions. It’s also about offering that customer something that others can’t.

If you have a startup, there are myriad hurdles to overcome in order to reach safety. If you’re aware of the threats, this can help you plan and prepare and ensure that you give yourself and your business the best possible chance of survival.