New businesses spring up every day, in every location and every industry. While this is a good thing for the economy, it also means that these new entrepreneurs have their work cut out for them in an increasingly crowded marketplace.
It is no longer news to any of us to learn that about 40% of new businesses don’t make it past their first five years. New businesses experience a high failure rate, either as a result of inexperience, mismanagement or cashflow problems. But that doesn’t mean you should lose hope in your dream to launch your own business. It simply means that your start-up should be backed by solid research.
There are many factors that contribute to the success of start-ups, and when you know what they are, you will find that launching and making a success of your business is more likely. Ready to get your start-up off the ground? Then these three tips will come in handy:
Make wise money decisions
Every start-up needs an infusion of cash, but you need to be careful about how you spend your capital. Many start-ups fail as a result of lack of cash, not because they didn’t have enough capital in the beginning, but because they spent money on things that could have waited until the business is strong enough to handle those type of expenses.
For example, rather than spending unavailable capital on personal computers for your workers, encourage them to work with their PC for some time. You can still track their work by using screen monitoring software. This money can then be channelled into research and development that will bring out products and services that can buy dozens of computers in the future.
Get the right resources
Apart from capital, there are many other resources start-ups need to succeed. For example, you need to partner with the right people in order to have a network that will benefit your business.
Also, don’t underestimate the importance of mentorship during the early stages of your business start-up. In your industry, look for industry leaders that have gone ahead of you and ask them to mentor you. Rather than making experiences that will hurt your business, you can learn from theirs and make the right decisions.
Finding the right support for your new business is easy. The key is to know where to look and be willing to pay the price for success.
Understand your marketing dynamics
Your start-up is only as successful as the number of people that know about it. This is why you should understand the dynamics of your business and how to reach the people that matter.
There are many ways you can market your new start-up, including via your website, online directories, bulletin boards, and guest blogging. The key is to build your brand as an authority in the field; thankfully, the internet is full of resources that can teach you how to do this.
It is also important that you build up a strong social media following, even before launching your new business. Pay attention to the trends that draw the crowd and find ways to make them work for your business.
As long as you have great products and services and can identify great ways to reach the people that matter to your business, you will have a start-up that does not fall into the 30% of short-lived businesses.