5 Tips for Increasing the Chances of Your Start-up to Succeed
Behind start-ups are bold people who want to disrupt the world with their idea. Venture capitalists (VCs) that fund these kinds of companies have named start-ups that will boom this year.
However, not all start-ups become successful or get off the ground. The reasons can be incompetence, having little to no experience, and personal problems, according to Failory, a website that specializes in this subject.
If you have a start-up business in the works, you won’t let it be a statistic among start-up failures or be filed under “Failed.” Stop whatever you are doing now, and make sure you have the following pointers in your notes.
- Foolproof Your Idea
Research, test, and talk to people to see if your idea can stand and scale up as a business. In cultivating your concept, think of these:
- Pain point/problem you want to address
- Target customer
- A solution to the problem and how it will be any better than the current solution or competition.
- Ability to generate profit
Some companies launch without a product, doing the research, development, and deployment, later on, to ensure they have a market for their product. If you intend to follow this route, at least have a plan of action.
- Prepare for the Biggest Role
What does being a founder or CEO of a start-up entail? Someone who has been there likening the role to that of a jack of all trades. You handle one post until you hire someone to do the work, then you move to the next like a game of musical chairs.
- Learn from fellow business leaders. For example, find a mentor with relevant experience.
- Improve your skill set, including, but not limited to, financial management, leadership, decision-making, and communication.
Networking is a skill and an advantage that you can use to get ideas for your new role.
- Raise the Money
How much money do you need to build and grow your business? Crunch the numbers so that you can line up the funding necessary to operate from:
- Personal savings.
- Business loans may be difficult to qualify for a company with limited to no operating history but check with government agencies like the Small Business Administration for loans and grants.
- Personal loans can be an alternative to business loans; they often require high credit scores for qualification.
- Credit cards can take care of some business expenses, but be wary of high interest rates.
- Financial backing from angel investors and VCs is in exchange for ownership equity.
- Brand It
Another start-up business may share your idea for a product, but the execution will set you apart. Trite or not, branding is everything. Here are the key elements of customization:
- A logo that is present and consistent across all company materials, websites, and products and their packaging
- A tagline that is true and easy to remember
- A voice that is effective in communicating the message
Custom packaging is also the safest bet for shipping fragile items. The boxes should be in the correct size to ensure the items, which have to be properly packed, should arrive dent-free and intact. Customers know and appreciate the attention and care put into the package.
- Hire the Best People
You can’t do everything all at once. You will have to delegate and leave the work to people who specialize in that field. The typical lineup for a start-up consists of the following:
- Chief marketing officer
- Chief technical officer
- Product manager or developer
- Office manager
- Customer support representatives
You may have to fill positions in marketing, business development, sales, customer service, content, and social media as you move along. There’s no shortcut to hiring people as you want the best for your team. You also have to be upfront with them about your expectations and policies, including pre-employment drug testing.
Indeed, some applicants may opt-out, while others may push through to get the job. The latter will surely do everything to pass the drug screening assessment. However, they have to take extra care to ensure their efforts lead to a negative test result and secure the offer.
The thing about start-ups is that they don’t stay that way forever; they want to be a large company. This growth intent separates them from small businesses.
May the ideas above lead your start-up business to greatness. Here’s to your success.