Having your own startup business seems to be all the rage now, even though startups have been around for a long time in all countries. Yet, despite their popularity, according to the Harvard Business Review, 75% of them fail. Failure is due to many factors, most of them under the umbrella of poor planning and not enough foresight to envision the future growth of the startup.
So here are some of the best tips you could use
What exactly is a startup?
A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed,” says Neil Blumenthal, co-founder, and co-CEO of Warby Parker. A problem, solution, and success or failure. But in most cases, you need to fail, as you’ll see in the next tip.
Richard Branson, the founder of Virgin Enterprise, said, “There’s often a very thin dividing line between success and failure… Every entrepreneur usually fails several times before succeeding, and the important thing is to keep getting up and trying again.” With that in mind, it means even if you’re going to fail a few times, don’t let it stop you from trying till you get it right.
“The key attribute of a startup is its ability to grow,” as explained by Paul Graham, co-founder of Y Combinator. A startup is a company designed to scale very quickly, and there are only two ways to go, either up or down. Even if you’re at a standstill, eventually you will either move up or move down.
You need to be flexible and adapt quickly to market needs and swings. Don’t be unwilling to go where the market takes you. “Resist falling in love with your initial idea so you can discover what the market actually wants and is willing to pay for – and then give it to them,” Cherylanne Skolnicki, career coach, told Forbes.
Get your finances in order
While many startups enlist the help of angel investors to get up and running, that’s often not available. If your finances are in order and you have some capital backing, a penetration pricing strategy for startups can help gain market share quickly. Many founders use their own funds, in which case penetration pricing is not a good idea as you need to be profitable sooner to survive.
As quick as you want to hire, it’s really the last thing to rush into. "The best people in the world at hiring still only get it about 70 to 80% right," AJ Forsythe, CEO, and co-founder of iCracked told Forbes magazine. The talents you hire are going to be your backbone. They are the ones who are worth spending on. "For me, if this person is amazing, I never want to lose them, and I'm going to pay this person whatever they need," Morgan Knutson, chief product designer at Dropbox, said.
Startups don’t fail
Startups don’t fail. People fail when they don’t know enough about the startup industry, their niche, and many other factors. It’s a consuming business but its benefits are numerous. Armed with a good plan for now and the future, you won’t become a statistic.
Published by Johanne Cosihan