Understanding Business Challenges in Startup Investment

February 16, 2013

Good Investors & liquidity of capital are two major pillers of successful startup.Its make your organisation from Zero to Hero position.But while dealing with this circumstances we have to be careful & have to  analyse forthcoming challenges  Following points will help startup's to explore more about their business strategies

Challenges in Investment Banking Sector

Ever since the subprime crisis and the consequent economic meltdown, the banking sector is still to recover from the challenge that it faced. The investment banks took the worst hit during the time due to the uncertainty in the market and it seems like their rough patch will continue even in 2013. The changes in the investment regulations are bound to have both short and long-term implications and the challenge lies in comprehending them fully and planning accordingly to maximize business. Moreover, following multiple regulations in multiple jurisdictions is likely to complicate matters for investment banks and require them to accelerate their efforts to respond and adjust to these changes.

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Introducing new modules of operation

In addition to the challenges mentioned above, most investment banks will have to restructure their operations in response to the changing regulations and market demand. Many of them will have to introduce shared services and reinvent their product and service portfolio to suit the needs of their customers. This will require a humungous effort from the human resource, administration, and operations department that will have to coordinate with the accounts department to factor the variable cost.

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Challenge in capital management

In order to manage their capital effectively, investment banks will have to spend considerable resources, both human and financial, for cleaning and managing their data. This will be both capital and labor intensive and will put additional pressure on investment banks’ resources. Apart from handling data, efficient capital management also requires putting an end to any unethical or rogue trading practices and taking all the necessary steps to prevent abuse of sensitive market information by any employee. Again, this is easier said than done and will test the mettle of the organization and its management team.

Reinventing for growth and business development

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Entry of foreign players in the market has necessitated reinventing business strategy for all investment banks in the country. In today’s highly competitive market, the motto is “get new or get out”. Thus, investment banks need to do an in-depth market research and study their competition closely to get an edge in the market. They need to tap new markets and develop strategies to expand their client base in the existing markets. In addition to that, large investment banks need to optimize the performance of each of their department to survive and thrive in the current market.

Career in this sector

Even though investment banking is a challenging career choice, it can be highly rewarding as well, especially if you feel that you are cut out for this industry. The two main skills that can propel you in this industry are analytical and interpersonal. Even if selling is not your forte, you can carve a niche for yourself in this sector by the virtue of the above-mentioned skills as well as a high level of motivation and creative ability. If you count these among your core skills, you should browse through the openings listed under Fidelity India careers and send in your new new jobs application today!

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Post Tags: #business startup #challenges in capital market #investment in business
Saurabh Mukhekar
Saurabh Mukhekar is a Professional Tech Blogger. World Traveler. He is also thinker, maker, life long learner, hybrid developer, edupreneur, mover & shaker. He's captain planet of BlogSaays and seemingly best described in rhyme. Follow Him On Facebook

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  1. Investments generally are good , especially , investment banking.Investments banks assist individuals and government.I like the motto"get new or get out".

  2. I like the following development and changes from zero to hero , i wish it is really right not only words.

  3. Yes we need to take necessary precautions for a business challenge we need have future enhancements for a business its a great ideal to have a future knowledge.

    1. Yes ganesh, proper steps at proper time is more important ! It will create short term goals for your business,which will help you to create long term goals

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