Every day you hear another new startup launch in news. With the growing trend of Entrepreneurship in the professional world, start-ups have gained pretty good momentum. If you have a bunch of people with great ideas that can solve a problem - Boom! There comes your own start-up.
But do you know many of these start-ups fall as quickly as they originate? In fact, according to statistics, almost 90% of start-ups fail within a few years of their launch.
Now, you must be wondering that start-ups are a risky business and one should avoid them as much as possible. But the truth is - it’s not so.
Most of the start-ups fail because of a lack of planning, ineffective strategies, and bad execution. One of the biggest mistakes that these start-ups make is that “Underestimate the power of planning and overestimate the strength of their idea!”
No doubt, you might have a mind-blowing idea for your business but if you do not have a plan twice as good as your idea, chances are your start-up is going to collapse.
But hang on there, my purpose is not to discourage you but to equip you with some good tips and strategies that will help you avoid the common mistakes that led to startup failures.
1. Plan Every Step
I cannot stress enough on the importance of planning in business. A great plan with a mediocre business idea surpasses a great business idea with a mediocre plan. Your plan defines the future of your business. Break your journey into small measurable steps. Quantify your progress. Focus on achieving smaller goals first and then aim for big ones.
2. Ensure Cash Flow
Every great business idea requires money for execution. Of course, there is no set amount that you need to have before you go all in. But you need to secure enough funding that money does not interrupt during the plan execution. On average, around 82% of start-ups drops down due to financial issues.
So, you need to make sure that you have the required funding for your start-up. Also, take your investors into full confidence beforehand to avoid future clashes which are pretty common reasons for start-up collapse.
3. Gather Good Team
Initially, you might work as a one-man army on your start-up but sooner or later you will need people in your team. Be selective about your team. Hire people who believe in your idea even if they lack certain skills. This will help you in the long-term. Measure the progress of your team regularly and lead them in the right direction.
4. Focus On Communication
In this information-driven society, you have to be at the top of your communication game. Often the lack of proper communication hampers the progress of your plan and delays its execution. Make sure that your messages reach the right audience in the right manner. Communication is such a powerful tool that can either make your business or break your business. So, use it wisely.
5. Timely Strategies
In the business world, things change within seconds. So, you need to constantly keep updating yourself with time. There is no one fixed formula for success in business. No matter how perfect your plan is but if you don’t update it with changing time it can kill your business. There are a lot of examples of this before our eyes. Many well-established businesses went down because they didn’t update themselves with time. Don’t commit the same mistake. Learn from it.
6. Play Long Term
A good business is all about patience. Many new start-ups originate with the thought of making it big in no time. Remember, “Rome was not built in a day”. You need to take it slow & steady - One step at a time. Don’t try to do everything at once. Plan one thing, execute it, and measure its results. If it works continue it and if it doesn’t work on it first before you jump to the next.
Business is all about solving a problem. If you have a knack for identifying a problem and have a solution for it, go build your start-up. But do it only with a proper plan in place.
Entrepreneurship is a culture that stands for hard work, determination, and persistence. Focus on the values that you bring to the table. Use accurate tools and strategies to make your plans foolproof.
All the big companies started small. Remember the early days of Google, Facebook, and Amazon. They all made it big with time through the right business strategies and execution.
So what are you waiting for? If you have that awesome business idea and want to make it big, just put a good mix of effective planning and execution in it and there you go!
Keep hustling harder. Who knows when your start-up gets you on the list of ‘Forbes Top 100 Entrepreneurs of the Year.’
Showering the best all your way!