There is no denial in the fact that nine out of ten startups fail within the first five years of existence. This does not account for the million and one startup ideas that die before hitting the light of day. In such grueling circumstances, running a successful startup requires determination, strategy, the right alignment of stars, and a touch of fairy dust too!
The sunrise stages of the business life cycle are undeniably the most formidable years. Successful navigation through the initial stages may seem like an extraordinary feat, but in truth, it is a game of strategy and survival above all else.
Are you a startup owner weighing in on the pros and cons of giving in to a passion?
Have you been wondering what it would be like to take the plunge in the world of startups?
Or even if you are just wondering about the survival statistics of an early-stage startup, then this article is just for you!
Now take a few deep breaths, and let’s dive right into survival mode!
Ideas may be the foundation of startup culture, but at the end of the day, it is the implementation that truly matters. You may remember your Archimedean Aha moment of coming up with a unique idea, but at some point, you must realize that an idea is like a free bird. It’s not yours unless you catch it.
If implementation was not significant, then Jeff Bezos might still be selling books from his garage instead of running a multi-billion online label that we happily depend upon. This is why we believe that the most common reason for startup failure is the lack of objective planning those analyses the practical logistics of running a startup.
There is nothing wrong with being ambitious, but a viable plan of implementation is a necessity in the ideation phase. Slow down and ask yourself about the pitfalls that may happen. To keep positive cash flow at all times, remember that comes at zero cost to your personal financing by choosing a resource that is motivated by low-risk factors and lower capital requirements.
Everything is in a Name
If you are a Shakespearean fan, then remember, literature does not always work well in the practical realm. This is why you must name your startup according to what it actually represents. Just like Facebook started as a medium to connect people and Kleenex became a big cleaning brand, similarly, your startup name must also represent what it stands for.
Case in point; Skin Outfit, the company sells leather jackets and accessories. Since leather is extracted from the skin of animals and it also adds little something to the brand image, the name works perfectly well.
After all, the name of the company will be splashed across marketing copy, advertisements, stationery, packaging, and whatnot. It is an appellation that will be used as a label for your brainchild and you must feel proud about it!
Remember a Soda named ‘cushion’ will not make sense, and if the name needs a few minutes of explanation, then your odds may not be as good as you’d like them to be!
Be Mindful of the Economic Problem
We were all taught in economics that scarcity arises due to the infinity of desires and the limitation of resources available for exploitation. This means that when it comes to finances for your startup, try to be frugal from the beginning.
If you have a solid strategy for practical implementation throughout your business journey, you will be able to have a clear picture of your financing strategy. Critically analyses the financial resources that could lead to long-term damage to your personal finances in the unfortunate case of failure. This means that you must remember the equation ‘money in = money out.’
There is a straightforward chance of your startup not breaking even to the initial investment, but that does not mean that you won’t have to pay off investors. Try to make most of your financial decisions by the value of returns on investment.
Try to cut costs through outsourced operations from cheaper markets abroad so that your finances down drown you under the weight of your business expectations. Keep in mind that minimum viable value is necessary for you to stay afloat in the early stages of a startup.
Keep your Eyes Open
When you try to pursue an innovative idea, the lack of extant literature on the subject could lead to a few inherent challenges. Whether you are trying to develop a prototype that breaks the barrier of time and helps people teleport, or if you are trying to start a drone-delivery system, the regulation and legislation applicable to the product must be fed to your memory at an early stage.
The exponential growth of technology-driven products equates to the exploration of uncharted territories. This has led to many pit stops in the development of appropriate legislation and has hence thwarted many ideas from taking root.
Remember to make your product resilient enough to stand the ground in the tempestuous waters of changing legislations. Research is the key. And you must continue to do it until your prototype is the Martian that the regulatory authorities absolutely adore!
Make a Collective Effort
The co-founders of a startup carry the true essence of the ideology the business carries. This is another reason why it is necessary for early-stage startups to stay together before toppling to the ground due to the competition in the field. It is the collective strength of the team that makes a business compatible.
Diversity of opinions and thoughts can help you with the management of the multiple layers involved in running a successful startup. Before going ahead and advertising for recruitment opportunities on LinkedIn, your cofounding team should develop a rhythm and company culture.
The one thing that matters most to keep a startup alive is the commitment to serve the target audience. Remember your product is the success story of your blood, sweat, and tears. It deserves to be appreciated and expanded into a full-fledged production unit, but thoughts don’t work unless you do!
So go ahead and carefully craft a strategy that defeats each contingency. When your investments are within your means and your intentions are right, you will succeed without any challenges.
Perseverance matters most!
Originally posted 2020-10-21 17:07:28. Republished by Blog Post Promoter