Practical Solutions to the Top 5 Challenges for Founders in 2023

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The last decade has ushered in technological advances that have won us over. Some successfully offered solutions to the problems they posed to solve the common human. Others took more from the public than they gave. However, none of these advancements have made running a business any less risky.

As we move forward in the year, founders will likely face challenges on several fronts. Although there are several technological solutions available to help solve these challenges, it is quite daunting to find the most effective solution. Also, having to deal with multiple issues at once can make it a bit difficult to keep them together.

Throughout the year, I have seen the following common challenges among founders, and have offered the following practical solutions to ease their transition into 2023 and beyond.

Related: How This Founder Overcame Challenges He Never Saw Coming

Cash is the lifeblood of a business, and many fail when they are unable to maintain it. Also, most startups take a while to start generating cash flow. So they have to find a way to float the expenses before the money starts coming in. This is why many start-ups seek funding from investors. However, this may not be the best direction to take.

Founders often have cash savings when they start their business. It's normal to plan for these money savings, and they often overestimate the chances of the business turning a profit in no time. As a result, founders (especially new founders) are very likely to incur high overhead costs and incur more payroll expenses than necessary. As reality sets in, they can start looking for external funding.

While getting funding from investors is common, it's something you should think about. Founders often make the mistake of giving too much capital to investors in their attempt to close funding quickly. Newbie investors can sense your desperation for money and exploit it to demand ridiculous equity.

To avoid this, you need to limit your overhead costs and keep your payroll expenses to a minimum. Hire talent only when needed. If a position becomes available and you don't see it relevant in a few months, it would be better to work with an independent contractor.

As an alternative to investor financing, consider approaching a local bank early enough for a commercial line of credit. This will give you some level of liquidity to keep your business afloat. Note that financial institutions don't really offer a long line of credit, especially to startups. So, the lower your overhead and operational costs, the more useful a line of credit will be to you.

Marketing, as we know it, is essential to the success of a business, but it is often capital intensive. The majority of startups spend up to $15,000 per month on marketing. If you're the founder of a startup, you're probably amazed at the money other startups are putting into marketing.

Well, higher marketing spend doesn't always guarantee high returns. Almost all startups are strapped for cash. So your ability to find clever workarounds will be extremely useful.

Instead of creating expensive marketing campaigns, you should consider