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Startups – Main Challenges Startups start on a shoestring budget. They are short staffed, strapped for cash, and they have one person performing multiple functions. For instance, the only two sales people might also do double duty as marketing. Startups may have a limited IT budget. Yet they need to get the word out, since they are the new kids on the block. They need to tell the world what they sell and why customers should buy from them.