Challenges faced by Startups

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A startup can be defined in various ways depending in the time since inception, the total number of employees, annual revenues and more. But to put it simply a startup is a company started around an innovative concept or a problem which can translate into an impactful business opportunity. On hearing the word startup one can quickly recall words like innovation, enthusiasm and energy and most importantly patch breaking technology. We are living in this age of transformational technology wherein technology is impacting our lives in unprecedented ways. Hence it becomes imperative that the startups leverage the technology in the best possible way to execute their concept. In this blog we try to bring out the challenges that are faced by startups from a technological stand point.


This is one of the most important aspects for any startup. Though idea is one of the key components for any startup to do well but timing is also as crucial. We can connect timing to both the time at which the business is being conceptualized and executed and also how quickly it can be done using technology. So for example the timing of the business is great but the timing of the building the solution and taking it to the market is flawed then it would not yield expected results. In the very competitive world of startups, more than one startup business can have the same business idea. Hence the timing of developing the solution becomes critical in giving the first movers advantage to the business which takes it’s web or mobile app to the consumers first.

Rapid changes in technology:

Startups are closely linked to the word innovation. In today’s world innovation is how uniquely you are using technology to solve a problem or bringing an idea to life. If technology is used in the right way it can be a big business enabler and can be instrumental in getting your idea to life. At the same time the pace at which technology is changing has been unprecedented. Customers have become very demanding in the past few years and hence their expectations have also increased simply because of the product and services So it’s important for a startup to choose the right platform keeping scalability of the technology in mind.

“Ideas are easy. Implementation is hard.”

Guy Kawasaki


This is an obvious factor for any business. As startups are competing with each other and trying to get to the goal post first so costs become a very important factor in the sustainability of the business. One cost will of course be required for the business in general but there would be technology cost. Startups have to invest in technology to build their solutions which in today’s times becomes a major cost head for the business. Hence startups should be very careful in investing in tech not only from a short term but also in the long term keeping in mind scalability and growth.

Hiring or Outsourcing:

The big question for a lot of startups is “whether we hire our IT team or we outsource the work?” The most important factor to consider here is the amount of funding available. It’s a reality that 90 percent of the startup businesses shut down after their first year of inception. A lot of this happens because the money dries up. Outsourcing the software development requirements of the startup business like building a website or a mobile app or a customized software application is a good way to keep your company competitive. If a startup hires a team of developers or designers then not only they have to run their payroll and pay them their benefits, the company also has to invest into tools and platforms required for their IT team. This also involves upgrading the skills of the team at regular intervals which means additional cost to the startup business. Hence if startups work with an experienced software development company then these issues are automatically addressed. The software company will have experienced team of software developers and designers, latest software and mobile app development tools and would be using the development methodology which would best suit the startup. The business can get to choose different engagement models depending on the project requirements and budgets.

Startups might be small companies but in today’s times they play an important role in the economy. They also create jobs and with technology developing at such a fast rate, startups spur innovation and create a competitive environment.