Challenges to Overcome When Starting an On-Demand Business.
Challenges to Overcome When Starting an On-Demand Business.

With the trend of digitization in all the sectors of the economy, the emergence of utilizing on-demand services has increased. The on-demand services that have been offered in various sectors such as food, transportation, health care, the automobile has become popular due to the increasingly vital role of mobile apps. These mobile applications have made availing these services very easy for consumers and at their doorsteps.

A lot of risks are involved with starting a business. The dilemma of where to start from is one of the major hindrances. However, making the business grow, a lot of barriers would arise that were not anticipated. There might be problems like there is a lack of resources that would be needed to address them adequately. An on-demand business provides quick and safer delivery of goods and services at the doorsteps of the customers.

These businesses provide on-demand services to the customers and works on speed and ease of solutions. Many companies have an on-demand business app. Once the customer places an order on these apps, they deliver to customers in real-time, making solutions available to the consumers with only one click. However, there are a lot of challenges in making an on-demand business a successful one.

The challenges that one should be aware of before starting an on demand business are as follows:


Investment is a preeminent issue that stops entrepreneurs from moving forward. Indeed, money is very much required. Cash flows from investors or stakeholders is an crucial factor and it there is not a proper supply of the same. Issues like delay in rolling out products, hiring key staff, or fitting new offices take place when the cash flows from investors or stakeholders is withheld. Investment is needed to fund the software or product development, office space, marketing, and many more. The most important thing that a startup needs is to cut back costs and shed staff in the initial days because the success of a business would flow from the initial investment.

The way to manage this challenge would be as follows:

  • Improve cash flow to ensure faster invoice payments.
  • It is important to ensure that there is a proper inflow of cash through budgeting and planning.

Hiring employees and managing a team:

Data shows that when startups are started in teams, they show more success rate than solo founders. Therefore, getting along with people who are like-minded, both professionally and personally, with complementary skills is essential to manage a team. Another challenge is to know whom to hire, how to manage the team and evaluate the progress. Also, it is very much challenging to find a trustworthy partner. The first hires of an organization can also become the co-founder later on.  This challenge can be overcome by following these steps:

  • Be specific in the advertisements about the qualifications, job duties, work timings, salary, and benefits or else it appears to be very vague.
  • Bend backward for the employees. It is vital that both parties clear their expectations, thereby laying the foundation for a long-term, mutually rewarding boss-employee relationship.

Marketing Strategy:

Many companies do not build their marketing strategies, which would fetch sales in the long run. Which medium should be chosen to market the products and services is also one of the biggest hurdles. The solution to this problem can be:

  • Placing ads, building marketing campaigns and planning budgets for the same is a good idea to outsource one’s marketing strategy.
  • Know your audience and what marketing activities would be undertaken to increase sales.

Time management:

One of the significant challenges in a startup is the lack of time. There are thousands of decisions that are to be made, but the timing is significantly less. The best way to overcome this challenge is to:

  • Prioritize what is important at the moment and which decisions can be postponed for tomorrow.
  • If someone else can be delegated with the task, then do it.


The challenges that an on-demand business needs to overcome vary from one company to another. However, getting enough capital or investment, hiring employees, building marketing strategies and managing the time are a few of them. Every challenge comes with a solution, and therefore, it is essential to look into it.

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