Startups require more than just an idea or money to invest. Startups are hard and smart work combined with a dash of good decision-making skills and being able to handle the pressure. There are a lot of reasons why many startups fail. Some have it worse by going down as soon as they’ve been started while others do well for some time before taking the hit. Though the reasons are case sensitive, we can list out common mistakes and find ways to avoid those to become a successful start-up entrepreneur.
Purpose of the Startup
- Why do you want to start a new firm or a business?
- What needs does it address?
- Do people require those products or services?
These are some of the questions that need concrete answers before venturing into a startup. Having definite answers to the above questions will help in creating a comprehensive plan for the startup.
Take Risks, Accept Failure
- The best entrepreneurs have failed and not just once. Don’t be afraid to take risks but keep in mind that it has to be calculated. Let a risk be worth the effort that goes into it. Understand that failures happen and be prepared to accept the setbacks.
Manage Cash Flow
- Finances are a major part of any enterprise. Handling the investments, cash inflow and outflow can get overwhelming in the initial stages. Maintain a detailed accounting book. Always keep track of the amount of money being spent and earned. Consider the cash flow while taking decisions. Keep some amount aside for unexpected situations. It is always better to be prepared.
Do Not Stop Networking
- One mistake most startup entrepreneurs do is to stop networking once the startup has been established. There is no guarantee that the customers would remain loyal to one business. Spread the word about the startup, meet new people, talk about the startup, listen to their ideas, encourage them to try your product or service.
- Focus on customer needs. Know what they prefer and try to give them that. Think from their perspective when trying something new. Picture how customers would respond to an offer. Network online and offline. Balance the virtual and real world customers and overall target audience.
Planning is a Continuous Process
- Planning is a part of the business. Right from deciding on the idea, implementing it, finding a name, registering the startup, promoting it, handling the finances, planning is something that has to be done to minimize the risk and stay focused.
- Always have short-term and long-term plans. Ensure that both are in sync with each other. Have clear goals. Work to achieve them systematically. Find new opportunities to grow.
Anticipate and Adapt
- Anticipating the future is crucial. Even if the circumstances get adverse, be prepared for all sorts of possibilities. Consider both the positive and negative outcomes when making a decision.
- Adapt to situations and changing trends. Be flexible enough to adjust the plan when things do not go as planned.
- Being dedicated to work is definitely important. After all, you put all your efforts into making it a big success. At the same time, ensuring that you don’t have burnout from overwork or exhaustion is crucial.
- Having a calm mind goes a long way in helping taking better decisions. Make sure that you have set aside enough time to unwind and relax. Come back to work with an energized body and mind.
- Remember the rule that there is no harm in asking. Ask for a discount, a better price, quote another amount, when transacting deals with clients. One never knows which of these may prove to be beneficial to the startup.
Protect the Startup, Have Perfect Paperwork
- Paperwork may seem boring and can be never-ending. But it has its advantages, especially when it comes to protecting a startup. Have the legalities discussed with professionals, secure and safeguard the startup with insurance, get the parties involved to sign officially drafted contracts and get the contract assessed by a lawyer before signing them.
Protect Intellectual Property
- Ideas, thoughts, words can be easily stolen if you are not careful. Do not discuss important plans with everyone. Identify the ones who will not steal your ideas. Do not give detailed explanations about how things work to outsiders.
Employ Capable Staff
- Having a capable staff can make or break a startup. Many businesses have failed due to irresponsible employees. It falls on the entrepreneurs’ shoulders to hire the right kind of people who suit the job and have the zeal to work.
There will always be exceptions to the rules. Be smart, be alert, and work hard to get what you want. Read this blog for tried and tested strategies that Jeff Bezos follows for his giant empire Amazon.
Awesome tips for Successful Startup