Rarely is a business so in tune with its niche that it can float along with minimal effort.
Starting a venture is a lot harder than most people think. Every entrepreneur and founder is certain that his or her idea has a very high possibility of success.
Why do most startups fail? There are some common patterns that account for large percentage of new business failures; cash flow drying up and inability to obtain finance from investors, failing to get the right market and right audience, not doing enough homework and researching the market, partnership not working or fumbling through marketing campaign and lack of business skills and real expertise.
Are you paranoid of your established venture jolting in the nascent stage? You have studied the markets and finances, yet the idea of a startup intimidates you. Though a high percentage of the startups fail, let’s get logical and look at rest of the successful ventures. Here are some guidelines, how your startup can avoid a failure
Starting a venture or building a product is easy, sustaining operations or making them grow is the major challenge.
Invest in a robust, well-rounded team
You need to make sure you have the best people from diverse fields so that they can complement your skills. Together as a team you can maneuver any challenges and pitfalls. Do not accentuate on a one-man team. You will need advisors and a board of directors for regular communication, reporting, strategic planning and maintaining discipline. A growing team needs skilled managers and an HR organization. A balanced team builds a great business and helps you thrive in each situation.
Watch: Why 90 percent of Startups fail
Walk in the shoe of the customer
No matter how avidly you believe that everyone needs your product or service based on positive feedback from friends and others, you need to communicate with the end user of the product before you invest in scaling the business. Else, you’re startup is bound to fail. Ensure you lay down and meet good metrics in cost of customer procurement, recurring scales and margin. Be ready to accept negative feedbacks and prepare yourself to solve their problems and struggles. By accepting feedback, you are bound to grow and flourish in every possible way.
Creating a unique brand for your product is a must. The utility of your product and the value proposition have to be communicated loud and clear to the customer. You need to ensure that the product is developed keeping in mind the needs of the end user are fulfilled. What is more important is that the customers understand the usefulness well and realizes the need for it. One unique product can change the market statistics for your company.
Calculate the viability of your business parameters
You must experiment the product viability before launch. Testing, validating and determining the core features of a product are very essential. Based on the feedback from the user, invest on scaling the business. Each parameter has to be logically derived on the basis of calculations and not based on intuition and gut feeling. Every feature of the product should be calculative to meet the market and technical realities if you don’t want your startup to fail.
Enhance leadership skills
You have to enhance your leadership skills and focus on personal development. Acute awareness and sharp thinking are the some of the leadership skills. Never stop learning. You should keep your technology and software updated and flexible. You must constantly communicate, motivate, delegate with your team and channelize their energy.
Watch: How to Manage a Startup Team
Keep up with the changes in the market
Market is volatile. Any new innovations or development need long-term growth and sustenance in the market with less risk. You must have a sharp alertness about culture and environmental changes in the market and tune your radar accordingly. Sometimes the changes in the market come very quickly or take longer than anticipated, you need to envisage the future and focus on the profitability and viability in the long run.
No matter how great of a venture you have, you are going to have doldrums. There will be times when things are dragging along and you question your decision to embark on this path. This is a time to put in extra hours, effort and determination to make it work.
It is a different kind of satisfaction to start a new thing out of nothing and no doubt it is an amazing and exciting ride. Instead of being bystanders, the budding start-up founders and entrepreneurs must get into the game. Do not segment your responsibilities and get involved in every business process. You need to be smarter and harder. Versatility mindset is critical in a startup. The world is looking forward to having more entrepreneurs to envision and create the needs that we haven’t thought about yet.