By Lisa McNair
Everyone has a dream of owning a lucrative business. However, it’s never an easy process. About 75% of all startups fail within the first few months. It makes one wonder if it is possible to have a startup that is successful. No template guarantees startup success. As a matter of fact, it’s quite evident that all startups that are successful have a few things in common. There might not be a foolproof business strategy to follow, but these six tips can help boost a newly established business in the right direction and elevate its chances of survival.
1. Knowing Oneself
The main resource and asset in any startup is the person who starts it. To start a startup, that person must know his/her strengths and weaknesses as this is a vital requirement when choosing a team. It helps him/her choose the right team members that would fill positions regarding skills and expertise required for the startup.
2. Focusing on Work Ethic and Not Only Intellect
The team the business owner hires can help make or break the business. While academic qualifications are important, work ethic is also an important factor to consider. It’s essential for startup entrepreneurs to have a strong work ethic if they want to succeed. That means the owner should be the first person to get to work and often the last to leave. Moreover, they should hire a team that shares their work ethic.
Most companies find themselves having too many employees since they are trying to make up for the lack of work ethic from the current employees. When it comes to hiring, entrepreneurs should only strive to hire employees who will help boost the business.
3. Proper Management of Finances
No business can run without money. When raising funds for the business, business owners should ensure they only take what they need. It’s important to note that investors have expectations when it comes to business investments. The more the owner asks from investors, the higher their expectations. Regarding that, entrepreneurs should shun promising unrealistic returns to investors because things can backfire.
There are many costs involved in starting and running a business. That doesn’t mean that money should be spent on everything. Minimizing operational costs is likely to yield a larger profit margin. Entrepreneurs should learn to manage their budget and spend only when they need to. Hiring employees who are not needed is highly discouraged.
4. Viability of the Business Plan
It’s crucial for an entrepreneur to have a viable business plan. There’s need to evaluate a startup idea and find out if there is a market for the business before jumping into the market with it. One of the major reasons for startup failure is lack of viable prepositions.
One should analyze and learn more about their target market and the needs of their customers. They should find out if there are products serving the needs of the customers and if there is something missing. The business should provide a unique solution to the market needs.
Conducting surveys and looking at what competitors are doing is encouraged to establish a viable project. But this will require a skilled team, and fortunately many online services now exist that will not just conduct market survey but also provide tools for startups.
5. Restructuring the Team
As much as having a team is valuable, the team should change as the business scales. It can be hard, but it will help the business progress. Each stage of growth needs a different set of skills and restructuring might be the answer.
There is a difference between a million and billion-dollar company. A million-dollar team cannot deliver results for a billion-dollar company; otherwise, the business will stagnate. As the needs of the company change, so should the organization of its team.
6. Learning and Improving the Business
Learning is a continuous process that can greatly benefit any entrepreneur who wants to be successful in his or her business venture. For example, new players in the field can learn by looking at other corporate giants in their field and see what they did to succeed. Participating in industry events that bring different people together could be of great assistance and it can get you to know your strengths and weaknesses. Most individuals get inspired to try out new things by learning from these inspirational people. For entrepreneurs, smart move would be to ensure that they review mistakes of prior failures and look at all possibilities to avoid repeating those mistakes. That being said, through learning, reviewing and implementing creative marketing ideas, entrepreneurs can be successful in their startups.
While there is no foolproof template for success, these tips can increase the chances of a startup business being successful. However, success does not come on a silver platter. There is a lot of hard work involved, and entrepreneurs should be willing to roll up their sleeves and get down to business if they want to be at the cutting edge of their niche.
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