You are ready to open your startup business. But, you have been scared about startup fails. More than 50 percentage business fails in the first four years. Startup requires some passion, luck, hard work, and thoughtful planning. But I have seen some fails, some achieve success and some make it big.
Here are some guidelines that will help you to avoid Startup failure.
Business goal and plan
- Do have a business plan that includes every aspect related to your business like- anticipated cost, marketing, technology, staffing, location, production, financing and so on.
- It includes how you will market and sell your product.
- The great idea and great product are not enough. Sometimes it may happen the great product and ideas will fail due to not properly implement in the business.
Research and development
- This is one of the key elements for the startup business. R&D of your idea and product.
- Do research before you spending your money. As a consultant, I have on three separate occasion been asked to help with a business plan for a startup, where I discovered almost exactly what they are doing has been tried before and failed. In two of those instances, we were able to learn from the previous mistakes and actually make a successful run.
REASON FOR STARTUP FAILS
- No market need
- Lack of knowledge
- Bad location
- Lack of passion
- Poor marketing
- Disharmony on team
- Poor marketing
- No financing interest
- Product mistimed
- Ignore customer
- Don’t assume you will get great funds from investor, family, and friends. Only a very small number of startup get Venture Capital funding (VC) and in fact, the funding bubble has burst. And that means early stages are business is getting very less outside equity firms.
- Do assume the initial funding you have you have got, so the goal is to have the cheapest burn rate possible.
- Don’t assume that technology will be easy or constant. In almost every startup, the need for technology advancement was crucial to success, which leads to unanticipated issues and problems
- Do assume that there will be delays in technology deliveries, therefore you have to solve that buffer in your business plan.
- Do have a competent team and if they are not performing well then replace them without wasting a second.
- Don’t think you are doing the nine-five job for the easy and flexible life of being your own boss
- Do plan to work hard and achieve a little return on your efforts. To be honest, because reputation will ultimately a key to your success.
- Don’t think you solely achieve all the goals.
- Do select the team member carefully and give respect equally to all the member of your business. Because of the main reason for the startup fails is that they have a wrong team.
TO HAVE A SUCCESSFUL AS A STARTUP YOU WILL HAVE TO MASTER ALL THE GUIDES ABOVE.