Let’s face it, every businessman fears the failure of their startup business. At some point, the marketing strategy doesn’t cooperate well. The excessive effort, time and hard work are necessary and you have to be consistent at all times. According to a study commissioned by the U.S. Small Business Administration (SBA), one out of three startup business fails after the first two years. The same study showed that more than half (56 percent) fail after the first four years. Starting a tech company comes with its share of risks, and therefore, the chances of failure are considerably high. So it is really a tough challenge to keep your business on the torch but how will you do it?
Here are a few aspects you should keep in mind to join the league of startup business entrepreneurs:
Conduct a Study or Research
First of all, you have to conduct market research. It is really important to know the terrain of your business as well as potential customers. Through this, you can gather factual data that can suffice your strategies and methods for a startup business.
You can begin by conducting surveys, analytics, connecting and networking for in-depth data gathering. Be smart and assertive in thinking of the methodologies that you will use. Moreover, always fit your shoe of the customers. You can communicate with the customers through all forms of media and the data gathered from them will be the basis to build, modify and restructure your startup. You have to ensure that everything is research and logical driven.
Build Your A-Team
“Talent wins games, but teamwork and intelligence win championships”.
You have to ensure that you have the right people who are proficient in their respective fields. Your ideal startup team will maneuver your plan together and collaborate for the effectiveness of every strategy made. The team should compose of people who are open-minded, dynamic and easy to work with. Your founding team requires a combination of balanced skills that are relevant to your company’s goals and mission. Hiring people for your team with ideal skill, so take the time to choose and be critical in looking for your partners wisely. Thus, if your team has issues, the most likely your business will fail. A good team builds the organization and helps you to overcome in each situation.
Develop an Effective Business Plan
“If you fail to plan, you plan to fail.”
A business plan is very vital to become successful in business. From the research conducted, you can architect your potential business plan. Through the factual data, you can identify what are the necessities of your potential customers and how you can provide it. Here are some of the factors and problems that will be your basis to develop a strong business plan.
- Model Failure
- Management Team
- Running out of Cash
- Product Problems
Focus On Marketing and Customer Relations
Know that the customer is queen and that you shouldn’t make the queen wait. Many startups don’t focus on being responsive, and if you do you’ll have an edge over them. Without your customers everything is useless. Always remember that the dice is on them and you have to connect to your customer to make them aware of your products. Basically, respond quickly to everyone involved in the business in any way.
After all the strategies plotted and team- building, you have to consider the needs and wants of your customer and people who can be potentially interested in your product needs to know that your product exists for them to be able to buy it. You need to create unique marketing of your product and the fresher and unique it is, the more it will fascinate the interest of your potential customers. You need to make sure that the product is developed keeping in mind it fulfills the need of the user.
Personal and Leadership Development
To improve your startup business, you need to enhance and develop your leadership skills and personal development. As a leader, you need to communicate, motivate, delegate and motivate the team to be successful. But always remember that you cannot manage it all. Majority of startups fail because leaders think they can manage all aspects of the business by themselves. If your business needs detailed attention, you will need to disseminate the task to your members. Even if you are really a jack of all trades, killing yourself with workloads can burn your energy out.
Also, you have to instill the personal development of each member and some of the leaders underestimate this aspect. Attitude matters the most.
Manage Your Finances
Utilizing funds is a great milestone for any startup, but it should not be your primary goal. Carefully think about when it’s time for you to start seeking funds because when you run out of cash, you’re out of business. It is that simple.
Also, avoid high debt. Loans other forms of debt can be fatal for a small business. Although most companies rely on some level of credit to get the capital they need to launch, the disadvantage of credit comes when the time to repay the loans arrives.
Entrepreneurship isn’t about taking endless obstacles; it’s all about how you overcome it. If you are about to launch your first company, hopefully, these tips have prepared you to build a startup without making easily avoidable mistakes.