7 Factors That Can Limit Your Growth as A Startup | 2017


Startups are full of dedication and excitement, but the flip side is, they are full of risk and doubts as well. In reality, most startups fail because early-stage startup founders don’t know where to focus their attention when almost everything demands their attention.

Hitting growth targets and achieving more and more new customers are the goals nearly every startup founder aims to achieve. A multitude of factors influence and determine startup success, including capital, team, technology, product and strategy.


If your startup is struggling to grow, then you need to keep all the factors in mind that can impact your business ability to grow.

Let’s explore some important factors that can affect your startup success:

1.The Idea Behind Your Startup

The idea behind your business might seem to be the greatest factor accountable for your business success or failure. Let’s take an example of Google, whose main idea of web search was already being implemented by a number of competitors. But because the business idea, planning, execution and timing were appropriate, the lack of originality didn’t hinder their business growth.

2. Your Products or Services

Your startup success or failure heavily relied on the products or services you offer. Just because your services or products are perfect in your mind doesn’t mean your customers will have the same feelings. If you are too excited to launch, too enthusiastic to get your product featured in the news, it could cause problems for you in the present or future.

3. Incompetent Leader

Leadership matters most in startups. Great leaders make the right decision at the right time, set the vision and inspire team to work harder to achieve business goals. However, an incompetent leader in place make less effective business decisions that will ultimately put the morale of the team at risk. On the other hand, a skilled and competent leader can do wonders for your business.

Make sure the founder of the company is comfortable with every aspect of the business plan, including the direction your business is moving.

4. Ineffective Growth Strategy

A startup that doesn’t have an effective growth strategy will die out, some more quickly than others. One of my friends owns a web design agency, he was captivated with the sole proprietorship. His agency was his bank account. The money kept rolling in from every side, but he was not feeding the company the way he should have been. He found that paying himself a lower income and investing in his business was simply the smart decision he made to accelerate the growth of the company.

For him, it was a tough decision to make. Though it took some time to get used to the change, from a growth point-of-view it was the smartest decision he could have made.

Your growth strategy should include your goals, targets, operations and more. It is advised to write down everything in your business strategy as it helps you to follow each and every step and increase your chances of eventual success.

5. Imperfect Execution

Your strategy only works best when you execute it perfectly. If you have a great plan but fail in its execution, trust me your entire company could be compromised. Oppositely, if you have a perfect plan and perfect execution, you will have a solid understanding of what worked best and what didn’t from your original plan.

6. Inappropriate Timing

Believe it or not, timing is critical from a competitive perspective. With perfect timing, you can reach your startup to new heights of success. Let’s take an example of YouTube, when it was launched, there were already a number of video streaming apps. But just because YouTube launched at the right time when the high-speed internet became the standard, the brand has successfully reached to heights of success.

7. Funding Strategy

Your working capital is important, so if you are an early stage startup, don’t panic if you can’t find investors. You can consider personal and family investments for your startup. Don’t overlook the possibility of opening a line of credit. Once your credit is secured, keep track of your cash flow, as one wrong step can put your cash at big risk.

When it comes to raise money for your startup, it is advised to get to know your potential investors before you ask for money. As there are hundreds of thousands of venture capitalists and investors present out there, build relationships with those who are a best fit for your startup.

Closing Thoughts

If you carefully look at these important factors and are willing to meet and exceed the demands, chances are you are already geared up for success. Make important tweaks when needed to increase your chances of success and stay aware of all the possibilities that can limit your startup growth.

Mohammad Ali

Mohammad Ali is an experienced digital marketer and a search engine marketing specialist who
is currently associated with Branex, a leading web design agency in NYC.

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