Creating a startup can be daunting, to say the least, and it becomes scarier when you view statistics. According to studies, only 50% of startups survive up to the five-year mark, and about 65% of startups fail between the ten-year mark. So, for new entrepreneurs, how can they prevent failure before they even start? For that they must be willing to consider a few things:
Startups come with their own set of risks and uncertainties for the one who is starting it. But being an entrepreneur means being a risk-taker and taking initiatives for the good of the business. Entrepreneurs have to learn to deal with discomfort in new and challenging situations and not to be afraid of failure. Rather, they should be working to “fail fast and fail forward." No success is achieved within your comfort zone so, new business owners should accept the fact that failure is inevitable but it will be able to teach them a lot.
Step one of being a good leader is to have proper management skills. Your employees must feel like they have a leader who knows what he/she is doing because if they have confidence in your abilities, they are more likely to trust your vision. Making strategic management decisions, supervising staff, and taking charge are all qualities one must learn before they begin to manage a business. To avoid leadership failure, it may be helpful for the business owner to first learn some skills in financial management, employee motivation, crisis management, and other related topics for business management. Training under existing business owners and examining business and leadership techniques are the best ways to learn and develop these skills to fend off management failure.
The entrepreneur must be knowledgeable of market needs and what the customer wants. Often, the reason for startup failure is when they offer a product or service, they think the customer wants, but it does not address a market gap or a unique way to fill that market gap. As a result, the product/service lacks desirability. The best measure of success for a product/service is the willingness of the target audience to pay for it. Understanding what the consumer wants and solving their biggest problems should be the main aim of the business at any stage, but especially when it is starting. Giving time at the start to research market trends and gaps can prove to be helpful at later stages of the business.
To avoid getting lost in the sea of business ventures, it is important to differentiate your business at the very start. Your brand identity should be recognized by the customer and they must be able to identify with it as well. To do this, you need to have a marketing plan that encompasses different elements of your business such as your logo, tagline, product/service range, and your business aesthetics as well as your business’ vision and goals. Luckily, several companies are providing digital marketing solutions to help your new business get on the right track. They can help you with creating and maintaining an online presence, creating high-quality content, helping with lead generation development, and getting information from your contacts. Letting your customers know that you exist is the first step of standing out of the crowd.
Once you know what your target market wants and you have designed a product/service to fulfill those needs, now you need to sell that product. The best way to create excitement around your offering is to generate pre-launch hype. This can be done to not only create a buzz but also help get funding by attracting investors to your business early on. The best way to get pre-launch hype is to create a coming soon website. There are several website platforms that you can make use of to develop a coming soon website, such as WordPress CMS, DIY platforms such as Wix or SquareSpace, or you could hire a web agency such as Hul Hub to first create a coming soon website, and then later a product website for your business.
Using these tips, you can set your business in motion on an upward arc and prevent business failure from its root.