The time when having one great idea and will to realize it was almost all it took for a sure success has unfortunately passed, and new entrepreneurs can easily find themselves in a serious binge and crippling disappointment. This does not mean that new fresh ideas are not needed and appreciated, but the reality is such that nowadays many more factors determine whether the road a certain startup will take is going to be ascending or descending.
Unfortunately, success rates of new startups are putting people off when it comes to stepping into the uncertain territory of owning a business. As it happens, almost 92% of startups fail immediately after their launch while 50% of those that succeed can meet a devastating end after approximately five years of management. In order for this picture to change, the world of independent business needs more people to dare and take up the challenge of starting something from the scratch with solid awareness about how much hard work this endeavor is going to take.
Most startups fail from the start due to the poorly planned distribution of money. People who want to be entrepreneurs badly can rush things and get overly immersed in the process of creating their new business thus easily becoming the victim of premature scaling. This usually means that a lot of startups fail because the money is spent too fast on marketing, hiring, equipment, etc. without proper brand establishing in the demanding market.
Balanced team work
People who try to do everything on their own are less likely to achieve success. Similarly, disorganized and unmotivated team work will do more damage than good. Therefore, it is important to find people who are willing to go through the best and the worst of times for your new idea.
Some teams feel strongly about the business until it is successfully launched but their energy, commitment and devotion can drop when it is time to invest even more work for a business to stay strong and keep going. Putting together a team of trustworthy people who will be able to support you as well as each other is an essential part of even hoping to discuss the question of success.
Importance of good management
Even if you are off with a great start, there is never a time to relax because one of the biggest business enemies is mismanagement. Thorough research and constant will to improve can decrease the risk of failure but the truth is that no one knows what the life might bring.
Still, there is no success without trying. There are many aspects of mismanaging that can cause an abrupt end for a business so always make sure to do everything properly. Price your products and services according to the market analysis and not your own feels, pay taxes regularly, always preplan at least a year ahead, keep detailed records, use budget smartly, etc.
Learn, create, work and laugh
In order to accept a new business as something worth trying and coming back to, society wants uniqueness followed with the promise and delivery of quality. Therefore, always think outside of the box and, as Rich Litvin says, do not be afraid but strive to be different and do things opposite from your competition. Moreover, paying attention to the quality of the product is much more important than the quantity and it is something that the clients are bound to value more.
Instilled positive values that move the team further and keep them busy, creative and hardworking is as important as being able to make your team happy and relaxed in their working environment. Basically, there is no one sure road to success – you have to take all of them, turn every stone along the way and surround yourself with people who will not just blindly follow you but show you the right direction from time to time.
There is no guarantee for young entrepreneurs that their startup is going to be successful. Still, hard and demotivating as it may be, the approximate success rate of 8% is still a bigger number than definite 0% chance of getting anywhere if you give up before even trying.