According to The Fortune, a shocking 90% (nine out of ten) of startups fail within the first few years. The figures to support this analogy comes from failure post-mortem essays that founders of failed businesses write, to share the reasons for their businesses’ failure.
I’m going to share ways of increasing the likelihood of your startup’s success, and I hope that an entrepreneur somewhere will be able to turn things around.
How to ensure that your startup doesn’t fail
Do market thorough research
What service or product do you intend to sell? Is there any market for it? Statistics on the same Fortune article show that 42% of startups fail because they have a product or service that no one wants to buy.
Most of these business owners introduce the new products into the market hoping that their selling skills will convince customers to make purchases. The truth is that if people can’t see how your product can help them, they will not buy it, which can decrease your startup’s shelf life.
Hand-pick a strong team
Your employees can make or break your startup. Ensure that you have professionals working for you to help you navigate areas you don’t excel in with expertise. Having the right people, for instance, in accounting, human resource or sales will enable you to concentrate on other areas of the business.
After putting together a strong team, remember to nurture a good yet professional relationship with them. Most employers don’t always treat their employees well, which may lead to them feeling like they don’t have to put their best forward to help your startup succeed. Treat your employees well, and you’ll notice an upsurge in productivity.
Delegate duties to capable employees
Feelings like you have to perform every single task for your business comes naturally to a lot of people.
As much as you might imagine that doing everything for your business will help you identify the weak points, this could be detrimental to your business.
You already have a great team in place, so why not make use of it? Let every team member specialize in their strong areas, and start seeing how synergy can propel your company to greater heights.
Reduce overheads
Your overheads could end up eating into your business’ profits, leaving no funds for growth and expansion. For instance, you can choose a smaller office instead of renting a big office right away. A smaller office or co-working space can help you save money that you can direct to other facets of your business such as marketing or advertising.
Set your business apart from the crowd
What makes you different compared to your competitor down the road? Introduce things like discounts, coupon or freebies to make your product or service more appealing than the rest. When starting out remember that you have to work harder to attract customers compared to established businesses in the same niche.
There is a common misconception that freebies can eat into a firm’s profits. The notion couldn’t be further from the truth. Freebies can help you increase your profit margins. Focus on volume sales rather than a few highly-priced sales.
With thousands of new startups entering the market each year, yours doesn’t have to be among those that face an untimely death. Adopt a few best practices like; doing market research, delegating duties, overhead reduction and having a strong team and watch your business experience sustainable growth.