It’s a sad fact that nine out of ten startups don’t make it past the second year. But it’s not a fate that has to befall your startup by any means. If you’re starting a business, the line between success and failure is preparation. Here, we’re going to look at the kind of preparation you need. At the risks that can kill your business and how you eliminate them.
It’s easy to spot an idea that sounds great and pour all your heart and soul into it. To be so invested in making your idea a reality that you haven’t prepared yourself for the potential that it could fall totally flat on its face. If you’re new to business, you need to understand just how much market research matters. Not just to make sure that your idea is viable. But to make sure there’s a niche in the market for you to fill, and the audience you’re going to need to fill it.
Lack of a Competitive Strategy
Even if you’re going into a market with plenty of competition, you can still succeed greatly. But not just by plugging on and hoping that you prove better than them. You need to be able to state why you’re better than them. To do things that they don’t and shout to the rooftops about them. Find what’s unique about what your offer and use it to stand out.
Indeed, being able to stand out is important, but to stand out you have to make sure that you can be seen, period. Search engine optimization is an easy way to make yourself more visible on the internet, if you can do it. As is networking and enlisting other businesses to help signal boost your business. But you need to go out into the real world, too. To trade shows, to demonstrations of your product. People need to see you.
Bad Work Environments
You can be presenting the best face to the world and receive all kinds of warm reception and still do terribly. You have to make sure that things are working well behind the scenes. That you have a good work environment, dedicated staff and efficient methods.
It might be a surprise that growth is what will eliminate 7 out of those 9/10 startups that fail in the first two years. Scaling can be difficult, as Hampton Creek CEO Josh Tetrick can attest. Complexity and bigger numbers are a reason for concern. Bigger numbers of distributors, customers and demand. Businesses need to prepare for their growth and have a scaling strategy, not just assume that all growth will be good for them.
It’s not just success that you need to prepare for. You also need to have the right plans in place for when disaster strikes. Particularly if it’s something like employees getting injured or damage to your property. Having the right insurance is the key to make sure your business can keep going after these kinds of problems strike out of the blue.