Everyone is talking about what the ideal leader should be like, how they should think in order to be successful – and what the all the booming startups have in common. What they tend to forget, though, is that an increasing amount of startups today tend to fail. By looking at what many of these lost potentials had in common, we might be able to steer clear of the pitfalls, avoid the steep tumble downhill and make our chances of success more likely.
Here is what some of the most promising startups who didn’t make it had in common and what their owners wish they knew before kicking off their new business.
#1 They thought they could do it on their own
As a business owner, the first thing you need to understand is that all leading companies are composed of teams. It’s not just about the qualities of the leader and whether or not they are determined enough to build a successful career; an exceptional business owner and respected leader knows the importance of teamwork.
Their specialities are found in listening to the team members, enabling them in doing their very best – and making sure the dynamics of the team is working.
The last part is an important one; by making sure your team features a variety of skills, you’re ensuring that your company is able to handle an ever-changing market. They need to complement each other’s strengths and work to make each other better – a business owner who neglects the importance of a team is, usually, destined to fail.
Select your team based on what your company needs and continue to build it based on what your team requires to be strong.
#2 They handled their resources poorly
The sad truth is that, beneath the surface of thriving startups and decent businesses, lay an ocean of sunken treasures. Many startups face failure not because their idea was poor or due to a team that lacked strength; they simply ran out of money.
Although money isn’t everything when it comes to starting a business, there is certainly little you can do to build it when it first runs out.
Have a proper plan in order, make sure your finances are sorted out, and get started on creating a realistic budget as soon as possible. This stage should include reading up on business taxes, so look at ways to get the best tax lawyers deal with the Internal Revenue Service. It’s the tedious work and the planning that brings a lot of startups to their knees – even those that could have grown large and strong.
And when your business does grow, don’t hold it back by clinging on to your portion of the pie when you’re in need of increased revenue. Do what you can to keep it afloat, cut down on the expenses, and safeguard it from failure when it’s time to upscale.
#3 They forgot about the market
It sounds downright silly to the ears of any marketing expert, yet twenty percent of failed startups in a survey said it was due to not understanding what the market was looking for. They might have thought that they knew what the market wanted – or they may have skimped on the research and misunderstood just how tricky it can be to make customers try a new product.
It’s a typical pitfall, and the planning stage is essential to make sure you’re able to get ahold of enough early buyers. When you’re the creator of a new product or service, you’re likely to love everything about it – your customers, on the other hand, are sceptical and biased towards change.
They don’t like changes unless they know for a fact that it’s for the better, and your customers are not going to adapt to your new business idea.
Research, use technology to your benefit, and get in touch with marketing professional as soon as possible. They know a lot more about the market than you do and can help you with making your idea suitable for what your potential customers need – that’s the kind of stuff that makes businesses survive.
It would have been more comforting if only the lousy business ideas were doomed to fail. Unfortunately, great startups are pulled down with the rest of them when its owners neglect to plan, underestimate the market, and try to pull off a one-man-show. By avoiding these relatively simple hiccups, you might just increase your chances enough to succeed – and grow your startup.