5 Essential Tips to Prevent Startup Failure
Being a new entrepreneur can be challenging and nerve-wracking but also incredibly exciting and rewarding because you are taking your business from an early idea on a scrap of paper to a growing, and thriving business entity. The allure of being your own boss can be reliable and robust, but it’s important to remember that starting a new business is a roller coaster ride.
There is no end to the many legal, financial, staffing, customer services and marketing issues that will come up as you launch your business in the competitive market. Well, managing a startup can be a minefield, especially when the pull of entrepreneurship clouds your business idea and when you go it alone with no business experience.
According to a recent report by SBA, about 50% of all small startup business had failed within just five years. As a matter of fact, ups and downs are always there with any company, but your hard work is needed to make it significant. If you are willing to start your own business, it’s a great idea to learn from other’s mistakes and set yourself up for success.
As it is well-said by the renowned entrepreneur that “It’s fine to celebrate success, but it is more important to heed the lessons of failure.” Here are five essential tips that you need to follow in order to prevent startup failure.
Tip-1 Your Proposition Should Be Unique
The first and foremost tip that all the aspiring entrepreneurs need to follow in order to prevent startups from failure is to create a unique brand proposition for their products or services. Whether you’re a service provider or starting a tech company, you are required to figure out precisely what your offerings should entail.
You also need to discover the targeted audience for your products or services. As it is well-said by the famous entrepreneurs that “One single product can be life-changing, or game-changing.”
Hence the need for the utility of the product has to be created, and the value proposition has to be communicated loud and clear to the customers and users. Through proper research for the brand proposition for your products and services in advance and with the right strategy put in place, you wouldn’t lose focus on what should be done next.
Tip- 2 Enhance Leadership Skills
The second tip that entrepreneurs need to follow is to enhance their leadership skills and focus on personal development. Launching a startup is not like having a regular 9 to 5 job, you have to be prepared to fit your life around work in order to stay away from the failure.
So, if you are seriously willing to experience your startup grow and gain more profits in the long run, you have to believe in your idea, and you should be passionate about everything you do. As a matter of fact, a great leader can steer the radar smoothly in all stormy times. You are required to keep your technology and software flexible and updated.
In addition to it, you need to motivate, communicate, delegate and channelize the energies of the team to be successful. The ability to communicate effectively can be critical to landing customers, inspiring employees, and pitching to investors to raise capital.
Tip-3 Making The Buyer’s Decision Easy
Once you are done with the creation of a unique proposition of your products and polishing the leadership skills, the next tip is to gain the loyalty and trust of your customers to prevent startup failure.
When you are coming up with a new product or service, you should focus on fundamentals like solving a particular issue or addressing a need differently or uniquely. It is also at this point when you have to identify the individuals or the businesses who are going to buy your product which is also known as the targeted audience.
So, if you want to gain the trust and loyalty of your targeted audiences, make sure that you know how to pay importance on their feedback. Whether it is positive or a negative one, reassure them that your startup will do its best to improve the service to provide them the highest possible level of satisfaction.
Tip-4 Hire The Right Team
As a matter of fact, talent wins games, but the intelligence and teamwork win championships. Having a quality team of people to work alongside you is pre-eminent to the success of your new business. You need to make sure that you have the best people on your team from diverse fields so that you can maneuver any challenges and pitfalls comfortably.
Well, recruiting the right person for your startups requires careful consideration in order to ensure that each employee is bringing a new skill to your small business. The same concept goes for your business partners or members; they should be as passionate and determined as you are and have the skills and knowledge that complements yours.
Tip-5 Effective Calculations
Well, all the solo-entrepreneurs are required to test the viability of their products or services before launching them into the competitive market. A great product can fail if adequate marketing efforts and effective calculations do not back it. Everything should be obtained from calculations and inevitably driven.
Marketing is not limited only to making more and more people aware about your product’s core features, but it is also about creating marketing elements within the products and exploring unexplored venues like retargeting, influencer, marketing, and much more.
Starting a company or building a product is a straightforward process, but sustaining operations or making them grow is the biggest challenge for the entrepreneurs. Just because the market is volatile and 80% startups shut down, you don’t need to worry, all you have to do is to retain your calm, invest wisely in your team and go step by step.