When you’re about to embark on the journey of becoming a business owner, you’ve probably heard all about the various pitfalls already. There is a real risk, after all, that all of your hard work will be for nothing unless you manage to steer clear of them – and many startup owners before you have tried and failed within the first couple of years.
If you’d like to survive through the famous five year period, it’s a good idea to read up on on all the dangers before you get started. That way, you’re making your chances of making it just a little bit bigger and can look forward to many more years of business prosperity.
It is, after all, why you started on this journey to begin with so you might as well give it your best right from the start.
First: Consider your competitors
When you don’t have any competitors, you have the luxury of starting up something brand new and filling a huge gap in the market. Unfortunately, startups have most likely been there before you and, while your business probably has a lot to offer, it is just another small fish in the ocean.
In order to make it through those first all-important years, you need to take a long and hard look at those you’re up against. If you’re simply going to offer the same as them or less and hope for the best, there’s not really any good reasons for your potential customers to use your services instead seeing that they probably know and trust the services they’ve already been using.
Try to figure out where their strengths and weaknesses lie so that you’re able to outperform them – or at least have something to strive for. That way, your business might be able to provide something which your competitors have been lacking which again, of course, gives your customers an excellent reason to choose you instead.
Next: Watch your cash
As a relatively young startup, you need to keep an eagle eye on your money and your business budget. The difference between a startup that experienced success and growth during its first five years and one that had success, to begin with, but crashed before it made it to its fifth year is, of course, that the former managed to watch its budget.
While it’s easy to get carried away with your initial success and buy props to your heart’s content, this isn’t really going to do your business any good – and you risk spending more than you can afford. Try to expect every single unexpected financial hiccup and have some money ready at hand in case something should go wrong.
Keep in mind, however, that there are ways to keep your business afloat even when you’re running short. Find a short-term loan such as this salary loan, for example, but try to only use this if your business is in dire need. It’s a solution to avoid a business crisis, in general, and should only be used for emergencies.
Treat your team right
Finally, there is no surer way to success than investing in your brilliant team. As the ones who carry your business, provide excellent services and build your great reputation, you need to make sure that they know just how much you appreciate them.
Go out of your way to accommodate their needs and remember to get to know them as well. Employees who like their leaders tend to stay put at their jobs for a bit longer, you know, which again means that you won’t have to go out looking for a new employee anytime soon.
While there is no bulletproof way of making sure that they never jump ships, you can at least make it a bit easier for them to only say good words about your business in case they should choose to leave. Plus, you’re also making it a lot more likely that the next employees you attract will be just as bright-minded and good at their jobs seeing that you treated your previous team member so well.
Startups definitely have to go through quite a lot during its first few years but, when you manage to take care of these crucial points, it’s going to be a bit easier to make through to the finish line. Stay stingy with everything except for the care you show your employees, keep an eye on those competitors, and you’ll be able to run this show without too many business hiccups.