In a world marked by geopolitical uncertainty, unstoppable inflation and the technological maelstrom, entrepreneurs in 2024 face a series of unprecedented challenges.
From turmoil on war fronts to shifts in consumer preferences, every step toward business success seems fraught with obstacles. Here are the 10 challenges we have to face in 2024:
The war in Ukraine, the war between Israel and Gaza or the Houthi conflict in Yemen that threatens to block the passage through the Red Sea, are just the main examples that 2024 is being one of the most geopolitically turbulent years of the last decades.
In an increasingly globalized world, any conflict, no matter how distant it may seem, ends up directly affecting Spain, whether due to rising prices for raw materials, delays in logistics or the financial uncertainty they generate.
Faced with all these unforeseen events, startups are always more vulnerable, since our capacity to react is very limited (compared to the big ones) and we tend to be “always on the wire” so any sudden change can mean the difference between life and death. death of our company.
Emerging businesses are much more sensitive to price increases in raw materials caused by inflation, since they have little room for maneuver and cannot make large stockpiles of raw materials while waiting for things to stabilize.
Furthermore, as we are just starting out, the margins are much lower, so we have no choice but to pass them on directly to the end customer. If we are not able to properly justify these price increases to our clients, we run the risk of losing them.
Advertising online – at least in the big giants – is increasingly expensive. Until not long ago, advertising online was pioneering, but today almost all companies allocate part of their marketing budget to these channels. The massive entry of companies has made the competition to appear in online advertising increasingly higher with the consequent rise in prices.
In addition, we must add that the new privacy policies make it increasingly difficult for large advertising companies such as Meta or Google to collect information about their users, therefore, advertising campaigns have lost effectiveness and the results are worse. Faced with this situation, entrepreneurs must look for new innovative strategies to make our products known.
Whether or not you are a technology startup, in 2024 it is crucial to stay up to date with the technological changes that are occurring at breakneck speed. If we are not able to add the latest advances to our business models, we will soon become obsolete and will not be able to compete against new companies that do use them. The clearest example is the revolution that AI will bring to any type of sector.
Unfortunately, technological advances are also used by “bad guys” and AI and automated bots make cyber attacks more frequent and indiscriminate. One of the new challenges that entrepreneurs face is trying to protect themselves from the beginning against this type of attacks that can completely block their business.
The disruptive business models that allow the birth of new startups require qualified labor and this is very difficult and expensive to obtain. Entrepreneurs have to compete to attract talent against large multinationals and founding partners are going to have to increasingly focus their efforts on recruiting said talent as if it were about attracting financing.
Any entrepreneur who wants to start a new project in 2024 has to analyze it on a global scale. Opening markets in new countries is no longer so difficult and this is a huge advantage to be able to scale and grow your business, but it must also be taken into account when analyzing your competition. The leader of a neighboring country may very soon become your competition in your home country and you have to be well prepared for this.
Consumption habits have changed a lot and customers are looking for the products and services they consume to adapt to the needs and preferences they have at all times. Therefore, entrepreneurs must adapt our offer to the maximum possible channels, both online and offline. The pandemic allowed many people to try the comforts of online commerce for the first time, but at the same time it taught us how much we enjoy live experiences and once it was over, offline has returned stronger.
The slowdown in international investment combined with economic uncertainty has produced a change in investment preferences. Investors are increasingly looking for profitable companies from the first minute and much more realistic projections. It is key to understand this new market trend to be able to obtain external investment. Furthermore, we must be aware that we have just seen very inflated valuations of startups and it will take a lot to reach those figures again.
Gone are the times when customers were loyal to a brand for life. Today's consumer is much more demanding and is not afraid to try new products. You have to keep in mind that you will not hesitate to change brands if you find another that offers you something better, no matter how small it may be. It is crucial to continually improve your product and minimize your mistakes as much as possible, because any small mistake can cause you to lose a customer forever.
The path of entrepreneurship in 2024 is presented as a journey in the desert, full of challenges and challenges, where resilience and the ability to adapt become more necessary than ever. Of course, in the midst of any tumult, unique opportunities also arise for those who want to take the risk. So let's go for it boldly.
