Startup success rate: Learn from true stories
The Editorial Staff
It is important to understand your niche market and also listen to your customers to ensure a thriving startup success.
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A relatively new Bloomberg study reveals around 8 out of 10 entrepreneurs fail within 18 months of starting their business. An infographic published in a Mashable post brought out some key reasons that affect the startup success rate.
The problem is, many aspiring entrepreneurs think sprouting business ideas are the only keys to success. But that’s just the stepping stone. There are many experienced startup owners who believe that besides the macroeconomic factors, the startup success rate also depends on good or bad business decisions.
Cash crunch is not the only reason for failure. There are a lot of opportunities in the global market where you can do well as a freelancer or a consultant. So you see, you don’t need to have a startup business to succeed in life. But if you do, you must be diligent. If your business is falling apart, you must investigate the reasons for the failure.
Your initial years will be too important for your startup success, so wisely choose your management team
You, as an entrepreneur, need to dig deep and find out what’s going wrong in your business besides the financial difficulties. A multitude of factors can affect the success rate of your startup. We pick these stories to define what can change the direction of your business.
Connect with customers for a positive startup success rate
Connect with your customers to get product or business ideas. You really need to see if your customers like your idea, or have any requirement for it. Having customer focus will also determine your startup success rate.
As an entrepreneur, you will need to focus on customer expectation and not on investors to survive. It will be a mistake to put investors ahead of your customers.
Don’t end up investing too much
You should monitor your initial investments for success or failures. You really need to have a valid justification for the money you intend to invest. Startup entrepreneur Ben Yoskovitz described why his startup, Standout Jobs, failed.
He said they didn’t have enough understanding of the market and the product development process. Also, they raised too much money too early. They didn’t need the money.
But, we could use the money later when it becomes more important. Therefore, business planning is required for investment projection and improving startup success rate. You must also have a solid entrepreneurship guideline for your startup.
Being aggressive is not so bad
It is not terrible, as people think, to become aggressive as a startup. An aggressive attitude will be required, as you will need to engage your potential clients and investors. Remember, a major push will help speed up your startup success rate.
Understand your niche market by embracing the uniqueness of your trade area. You must start customer and investor engagement approach to give customers what they want.
Start your journey with the right partners and employees
Your start up success rate will depend on you. The initial years will be too important for your startup success rate. Choose the co-founders, partners, and employees wisely. After all, you can’t do everything alone.
Pixloo.com was doing amazingly well. The entrepreneur co-founded the company with a talented developer. Everything went well initially, as both of them worked hard and started creating lots of customers. But soon disagreement started over raising investment fund. They ended up selling Pixloo just for pennies.
Also, know how to measure business success rate. The first few initial years might not be rewarding financially. But you’ll need to develop. When your business startup is still small, generate weekly or monthly report of income and see customer response.
Your startup success rate will depend on how quickly you evaluate your present performance and make major changes and corrections for improvement.
The Editorial Staff
The Editorial Staff at The Business Frontal is a team of writers dedicated to bringing seasoned news stories and how-to business articles to our readers and patrons to help maximize their entrepreneurial potentials.
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