Starting a business is difficult; launching a start-up is even more challenging. Aside from facing the challenge of attempting to build a company from the ground up, many entrepreneurs have little prior experience in the business world. Even when they have an incredibly awesome idea, complex problems arise, such as managing the young enterprise, handling finances and hiring employees on a budget.
Due to a lack of experience, many start-ups endure the misfortune of failure, if they launch at all. So as not to be added to the statistic of the 75% failed start-ups (based on a study of 2,000 start-ups that received VC funding from 2004 to 2010), here are a few needed information:
FEASIBILITY STUDY: It is very important to conduct a feasibility study as a start-up that is looking for similar businesses in towns of your size and makeup, check their mode of operations, mistakes and areas of improvement ,then evaluate if it is a good idea
STAY FOCUS: When you first launch a company, it’s very tempting to get distracted by shiny objects —those opportunities that beg for your attention even though they may not be part of your core business. Start with own capital, pick a way to make money, and stick with it.
OVER PLANNING: You need a business plan, right? Maybe not. Spend too much time dithering about the details of your idea, and you just may plan yourself out of business before you even start.
UNDER PLANNING: In as much as you do not need to over plan, you also need not to under plan because a business plan is always used as referral when making tough decisions; sometimes a business plan might be altered even before the doors open. Try as much as possible not to overlook anything.
PUT ALL THINGS INTO CONSIDERATION: An everyday scenario is the use of the phrase “wing it’ in business. Many start-up underestimate the amount of start-up costs needed for inventory or expenses, always put all aspect into consideration during planning.
DO NOT SHY AWAY FROM COMPETITION: It takes great courage to leave the business idea phase into a real business but many entrepreneurs still sit in their comfort area for fear of the “big boys”. Apple Inc. stepped into mobile phone manufacturing and beat out the “big boys” like Samsung into becoming world number one. Do not be intimidated!
SLOWNESS TO LAUNCH: Start-ups make all kind of excuses for delaying launch. Most equivalent to people’s everyday procrastination. Stop waiting for perfection, launch and perfect it as you grow.
LAUNCHING EARLY: Launching too slowly has probably killed a hundred times more start-ups than launching too fast, but it is possible to launch too fast. The danger here is that you ruin your reputation. You launch something, the early adopters try it out, and if it’s no good they may never come back.
CUSTOMER FEEDBACK: Talk constantly to customers to learn why they buy your product or services and improvements or changes they will like you to make because whether you believe it or not they are your best marketing team.
HANDLING MONEY INCORRECTLY: When it comes to start-ups, having money is very much a big deal and it needs proper handling. One of the biggest mistakes is spending too much, which may occur when a business owner or founder becomes overly eager and hires a ton of people. At first, the entrepreneur may believe all the new employees are needed. But this will just mean burning through the start-up’s finances faster. To avoid this, hire only those truly needed and take staffing up step by step. Without proper management and use of its finances, a new business may never set sail. Be sure that someone good with numbers can help out with this.
What are some challenges you have had as a start-up or an intending one?
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