Axis Capital Business Finding Review: Realities of Business and Economics for Startups

Axis Capital Group Business Funding - When we are thinking of successful enterprises, the first thing that comes to mind is the big companies like Google, Nestle, Goodyear, Apple etcetera. We instantly inspire ourselves to follow their lead. What new entrepreneurs do not actually understand is that these companies have been in the industry for a long time, sometimes, experiencing more downfall than we could imagine.


We recognize the penetration of small businesses in today’s market but we are often unaware of the struggles they go through to integrate their service and products to follow the demands of the complicated customers. What these entrepreneurs often thought of as a smooth flow after surpassing pre-business stage to the first two years is a reality of continuous challenges and hindrances that should be defeated even in the long run.


Analysts estimate the time needed to create visible revenue would only be after five years. Some small business startups do not have the perseverance and resources to withstand for that long time. Those who manage can even barely get through and maintain.


It gets more challenging in developing countries where competition is fierce and the market is elusive. Most of the time, external forces affect economic sustainability of a business. The changes of government regulations, complaints and lawsuits, constant evolution of new technology and global recession can hit any startup companies.


Jake had just started his business of clothing retail in northern Jakarta in Indonesia when the recession hit the world in 2008. Moreover, clothing line and related business also started to boom, adding to the competition. With the expensive cost of branded clothing and the economic status affecting almost every household, customers tend to buy fraudulent designs from fly-by-night markets which also began increasing in Jakarta during that time. With a huge amount of debt and a family to feed, Jake had almost lost his mind. The imagination which he pictured would be perfect business stability with little challenges he could handle was like a bubble burst by the realities for startup companies.


Jake’s was only a small business using small capital. Imagine how it is for startups who invested big amount of money, loaned and in the expense of a house or a car. Since these challenges may seem severe, it is high time for new entrepreneurs to steel themselves for the inevitable potholes. Managing startup companies means not only managing expansion but also understanding how to manage downturns so as to increase the likelihood that the company will return to the growth path.