According to Statistic Brain, 46 percent of startup companies will fail through general incompetence. Another 30 percent will fail due to inexperience or a lack of managerial experience.
Many startup business owners are struggling make it work but with the right team and a strong leader you can make it past the first year and still be in business. These are a few ways you can get your startup from the struggling phase to a business on its feet.
1. Spend time cultivating your team.
Most new hires will either be fired or will leave your business within a year and a half. A year and a half is a critical amount of time for a a growing startup. Your team is the backbone of your business.
Bring in people who are better at their jobs than you could ever be. They need to know where the business is headed, what you want to achieve, how to achieve what and the time frame you are working with. Provide every resource they need to get the work done.
2. A CEO’s job is not to do everyone else’s job.
Stop interfering with everyone else’s job. Whoever you hired to get you to your destination is smart enough to accomplish what they are assigned to do.
Delegate efficiently and allow your competent employees to deliver on time. Every unnecessary meeting is a distraction to your growth. Your job is to help everyone else do their jobs better not to take it from them.
3. Spend at least 75% of your time on your Product.
Your company is only as good as its product. Put your stamp on it. Concentrate on getting your product better and not talking about making it better in meetings. A great product is easier to recommend by loyal customers who can help you get new customers.
4. Run the numbers.
Send a weekly email to your team summarizing all the key data that drives your business. What they did right the previous week that got your business closer to your goals and vision. Keep employees in the loop about growth, no matter how small the progress.
5. Ask for feedback.
You are building a product for others and their comments should not be taken lightly.The best way to know what could be wrong with your product is by using it yourself. Encourage your employees to use it and report interaction problems
Ask your employees, customers, partners, etc. for regular feedback. You don’t have to necessarily implement every feature request, but it’s important to know what works and what is frustrating.
Get out of the office and talk to real customers, partners, bloggers, press, etc. Listen to what they have to say and make changes where necessary. Actively solicit feedback from third parties: friends, peers, associates.
Share your issues and how you’re handling them, and ask for an honest assessment. Create systems for gathering feedback. Interview customers, competitors, analysts, and others in your industry to know how your company and products are perceived.
6.Hold yourselves accountable.
If you don’t meet your goals, withhold your bonus, take no raise, and treat yourself exactly as you would treat an employee who missed their targets. Be a leader not a follower and that should be obvious.
Make sure people within your business know your goals and know who can be counted on to do what. Once a day, go talk to one of your low-level employees—someone more capable than you in their area of expertise—and learn from them.
7. Friends don’t make good employees.
Never hire friends as employees. Many startup companies begin as groups of friends because it just seems easier. Friends may be trustworthy, but it can also be very difficult to manage someone you know and trust. Be careful you don’t run into role conflicts if your friend is your co-founder. Role conflicts stifle growth if not managed well.
8. Cut out the dead weight.
A startup usually doesn’t have a lot of funding, and one of the major reasons a startup will go under is through expanding too fast. Analyze your company’s current positions and cut the extraneous titles and make room to grow your customer base instead of adding to your payroll.
9. Bring in people who believe in the dream.
The only way an employee can really be driven to succeed is by truly believing in the company and enjoying the business atmosphere. When hiring employees, you should focus on bringing in people who are passionate about the product. Otherwise, they could potentially destroy your business from within.
10. Churn is distracting and defeating.
Even established companies will often have difficulties training new hires. If you hire a subpar employee, and they quit within the first year, this could severely damage your startup’s operations.
What are some of the effective strategies that have brought significant growth to your business?