How to Avoid Business Failure For Startups
You run a startup with lots of dreams. To see the dream idea taking real shape is exciting. Most of the startups begin with a lot of confidence from the entrepreneur. Later these end up as failures because of ignoring certain important aspects which may seem trivial. Get more info here on avoiding startup business failures:
- Come out of illusions: When we work in an office atmosphere, we naturally have all sorts of issues like a troublesome boss, bullying colleagues etc. But when owning a startup, we assume that there would be no problem because we are our boss. As a result, we do things in a leisurely manner. We procrastinate critical issues. We reduce the speed at which we wanted to achieve targets. People have to come out of this illusion.
- More Networking: Creating a huge network will spread a good word about your startup. Keep making new friends. Voluntarily speak with more people. Stay in touch with old friends.
- Collect contacts: When your customer steps in, it is not only important to serve him properly. But know who he is. Get his contact details. You can offer points on purchase to make him keep coming. Keep in touch with regular customers. If the frequency of visit reduces, enquire the customer and find out the reason. The reason will give you facts which you are missing out.
- 4. Budget planning: When it comes to own business, people get lethargic about daily accounting. It is impossible to maintain things in mind. You will miss something important. Keep records updated at least once in four days. Also, compare with the previous month to find out whether there is growth or backlog.
- 5. Specialize in areas: Specialization is what startups tend to ignore thinking that it is related to big corporates. But it is the startups which have more potential for specialization.
- Contingencies: Plan for unexpected expenses. Maintain reserve fund to tide over the situation. Out of the profit earned each month, have some reserve. Do not spend or reinvest the entire sum.
- Aware and tackle competition: Just because it is a small business (or) unique idea it does not mean that competition will be very little. Know how you might get competition. Find out what your rivals are doing and have plans to tackle them.
- Cash flow and asset utilization: These are not only related to large-scale firms. These are required even for start-ups. Be aware of income leakages and seal them.