A startup is a formation of a new company by one or more entrepreneurs who aim at providing a unique product or service in the market. Startups mainly focus on unsettling markets and making huge profits at a fast pace.
Start-ups have various intrinsic windfalls that most established and bigger businesses typically lack. Big companies usually tend to stuck in structure and bureaucracy whereas start-ups have more flexibility and creativity when expanding business plans and decisions. Do not fear to take risk, being a startup you have not much to lose but you can gain a huge chunk of profit if you take the risk.
However, the majority of new startups fall prey to certain traps due to a lack of planning and knowledge of the market and as a result fail to succeed in the long term. Nearly 70% of start-ups think of expansion too early, increasing the risk of collapse and 90% of new companies fail to achieve the 5 year mark.
Here are five Key Factors to keep in mind for launching a successful startup:
1. Create and follow a business model
To make the business successful, you must train and make your employees understand their work and how they must perform them and goals and objectives of the company. You need to keep everyone on the same page and work together.
A company has to adapt certain process which will help the employees to work in a organised way. A system is required for a team to work together efficient and productively. Your team must know how to address a problem or respond to situation.
The early days of startup you must concentrate on developing your industry processes. This can be hectic and time-consuming but with proper strategy it can increase workplace morale and productivity of the business.
2. Weigh the funds
Whether start-ups or small businesses, both has to struggle with arranging funds and finances. Shortage of cash flow can delay the rollout of products or services. Cash flow issues also prevent founders to take business decisions such as growth of the business, hiring staffs, purchasing tools and equipment, market research, investment in technology etc. that can facilitate business development.
However, there are many options to arrange funds such as taking loans and credits from banks and other financial institutions. Being a entrepreneur you can plead to venture capital investors, apply to local investor groups or start a fundraiser events or campaign.
3. Build a strategic team
Making a business successful is not a one-man job. You need a well-trained team with a proper strategy to use their potential in the right direction. Hence, hiring strategically and employing the right man at the right job is the primary component of creating a successful startup. Delay in building a team can waste a lot of time and will hold up your work.
Analyse what is required exactly to get the job done properly. Create an attractive yet realistic program for employees to motivate than and boost their morale.
Only product knowledge is not enough to succeed inyour business. You need to appoint the right people for the right job role so they can use their expertise to get the work done.
4. Know when to scale
The more your business progress and your product is in demand in the market, it is the perfect time to expand your business. You need to scale up your business to handle the increasing demand and to maintain enough supply. During this peak point being the owner you should not miss the opportunity to grow and earn by doing nothing. Scaling up is not a big deal for startups as they are usually small businesses.
Before you decide to expand your business, it’s important to anticipate the risks as well. Scaling up mostly requires employing more workers, shifting to larger office space, acquiring new markets to maintain growth. All of these risks are labour-intensiveand require substantial investment. Proper strategic planning is required to maintain the growth of the business.
5. Know what’s needed where
With growth and expansion of start-up in new markets comes new responsibilities for the existing staffs and workers as well. Your role in the business becomes crucial and you need to acquire certain skill sets to keep your work productive.
It’s usual for team members to perform multiple functions. It’s difficult for a startup to appoint roles necessary for an ideal fit. Sometimes being part of a team you have to perform roles that is not your area of expertise.
Appointment of new staff for short term projects may not be reasonable initially but if professional skills are necessary then you must spend some funds to get the job done. It’s important to be aware of the skills and knowledge necessary to perform certain task of your staffs and team members.
Conclusion
It is extremely important one must do all the required due diligence before starting a new venture to make it successful. This can be done by knowing both your product as well as the market. You must have complete understanding of the common challenges founders face and make appropriate plans and strategies to overcome them when building a company from scratch.
