These days, it seems like everyone is hoping to become the next darling of Silicon Valley or entrepreneur who has come up with the “next big thing”. And why not? There are plenty of benefits to owning a successful startup: being your own boss, creating something from the ground up and, of course, making money.
However, it may or may not come as a surprise, the majority of startups fail. And it’s approximately 75%, according to research by Shikhar Ghosh, a senior lecturer at Harvard Business School. With three quarters of venture-funded startups failing to succeed, how can you make sure that your new business won’t be one of them?
Here are tips for startup success to help you land in the lucky 25 percent:
Know Your Purpose
What need does your startup address? Why will people care? By discovering a service, product or feature no one else has thought of – or at least effectively pulled off – you give your company a shot at success.
Start With a Solid Plan
Every good company starts with a plan. Your business plan should include short-term and long-term goals. And remember, there is no reason you can’t change your plan later. Markets can be fickle and you may have misread consumer demand. Pivoting is a form of success. The “pivot” is the manifestation of self awareness, objectivity and resolve – the ultimate traits of a successful startup founder.
Take Risks and be Willing to Fail
The best entrepreneurs don’t let the fear of failure prevent them from going for what they believe to be a great idea. Some of those risks won’t pan out, but the ones that do will be the ones that define you.
Networking, Networking, Networking
Professional networking and word of mouth marketing have never been stronger. When you haven’t gotten your business off the ground, connections will help to keep it afloat. When you do, those initial connections will turn into powerful allies.
Never Stop Learning
As an entrepreneur, you must always be a student – willing to take advice, listen to other ideas and learn from those who’ve been there themselves. And that includes studying your competitors and the major trends in your industry.
Don’t Worry About the $$
As the saying goes, “you can’t make money without spending money”. This is especially true when launching a startup. The best entrepreneurs don’t think in terms of how much they make, they consider how much value they can add. That value might be financial, but it might well be social, psychological, or other ways.
Whether it’s outsourcing HR functions, IT, or accounting accounting, the trend of companies outsourcing certain business activities has been increasing over time. Businesses understand that by outsourcing these activities, they can focus more of their time on winning new customers, courting investors, and motivating their employees.
Nothing is as precious as health, which is why you shouldn’t sacrifice your well-being for the sake of your entrepreneurial venture. What good is a successful startup if you destroy yourself in the process? It’s important to maintain a balance between work and life in order to avoid burnout. By tending to your health, you’ll have the strength to carry out your goals.
So what are you waiting for? Let these tips for startup success guide your entrepreneurial spirit. And don’t be afraid to ask for help. From startup to IPO, HRO offers solutions designed to scale with you. Request a demo.