It’s no secret that creating a successful startup is a challenge. Entrepreneurs are up against established brands with limited resources in a tough economic climate and many seem destined to fail from the very get-go. In fact, a whopping 50% of all new businesses cease trading by the end of their third year.
However, for all the doom and gloom, just as many startups are thriving within such a competitive landscape. This isn’t down to pure luck; getting the rub and green can help when taking a new idea to market but so does careful planning and there are many different approaches you can adopt if you want to futureproof your startup business. Here are our 5 top tips for bolstering the success of your startup business.
Do thorough market research
Before getting carried away with a premise that you think works, check that there is actually a gap in the market for your startup idea. While some of the most personal business ideas can still relate to universal needs and experiences, it’s crucial that you understand the viability of your idea within a wider market context.
Thorough market research will provide the real-life insights you need, encompassing your target audience, their needs, and what possible competitors are currently doing to meet said needs. With this wider understanding, you’ll be able to appropriately position your own business and offer something your prospective customers or clients actually want that is differentiated from the rest of the market.
Have a solid business plan
Genuine passion and customer understanding are key to running a successful startup but these personal touches should not come at the expense of a solid business plan. Your business plan is the foundation of any successful startup as it serves as a roadmap to guide your decisions and help you stay focused. With your goals outlined from the very inception of your startup, it’s much easier to stay focused and rationalise the inevitable successes and failures that will arise as soon as you start doing business. Having a thorough business plan will also help to make your business more attractive to potential investors should you want or need to secure additional funding.
Maintain accurate financial records
Another important component of creating a successful startup is to maintain accurate financial records. This is not only crucial in terms of ensuring that you meet your financial obligations and can pay bills on time but also in terms of your ability to make accurate and informed decisions.
With this in mind, keep accurate records of your income, expenses and cash flow and make the time to review your financial statements on at least a quarterly basis. This gives you the opportunity to monitor your performance, celebrate successes and identify any potential issues early.
Hire well
In most cases, you’ll need to build a strong team to successfully grow your startup. The number of people you employ will always vary depending on the type of business and your goals but you should always focus on hiring the right people rather than aiming to increase your headcount as quickly as possible. Hiring individuals who align with your company’s values and culture helps to build a team that can work together effectively and this will play a huge role in your long-term success. Remember to also provide ongoing training and development opportunities so that employees can grow alongside the business.
Manage your risks
Businesses big and small will always face setbacks so you should never be too disheartened if running your startup isn’t plain sailing straight away. However, it’s still vital that you balance optimism with realism and manage possible risks appropriately with strategies in place to mitigate the impact of unexpected setbacks.
Work with people you know and trust as much as possible, have contingency plans in place for identified risks and be prepared to adjust or shift your business model in response to changing circumstances. This kind of flexibility will always help you to navigate risk and uncertainty more effectively and therefore increase your chances of startup success.
Following these top tips should give you the best chance of running a successful start up business. However, if things don’t go to plan or you find yourself starting to spot signs of business failure, make sure that you act quickly and get professional business rescue advice. Speaking to an expert as soon as possible will bolster your chances of navigating a successful rescue plan and guiding your business towards long-term success. If you need advice about suitable next steps for your startup, get in touch with the team at Ballard Business Recovery today.
