When So Many Startups Fail, You Need The Secret To Success

Why do startups fail? It’s true to say that over 90 percent of startups fail within their first year. The question we must now answer is…why? You could say that it’s just the law of averages and for a few to succeed many more must fail. However, there are key reasons why startups come crashing down, and they should not be ignored. For instance, your startup might fail due to marketing. Many business owners have the odd belief that marketing is something you invest in at the start of your company and then you can just let it go. However, if you do this, the short burst of interest in your business will quickly be extinguished, and you will be back to square one.

Of course, marketing isn’t the only issue that can cause a business to crash and burn. So, here are a few other problems that you need to watch out for and some advice on how to get around them.

Poor Support

You must make sure that you are providing your customers and clients with the full support that they need from your business. It is crucial that you do not leave them in a position where they don’t think they can rely on your business. For instance, there may be a problem with the product that they have purchased from your company. In a case like this, you don’t want to leave a client on the phone, left on hold. If you do, you’re probably going to get some rather poor reviews online. Reviews like this will spread like wildfire, and it only takes a few to stop customers buying from you.

So, you do need to make sure you have a strong customer support team in place. However, it’s not just about the team but also how they manage the issues that are brought forward. It will be easier for a team to handle problems with a Knowledge-Centered Support system in place. That way, you can make sure that issues are handled strategically and guarantee a brilliant final result for the client.

Overspending

Cutting costs must be a top priority for your business. You need to make sure that you are spending as little as possible in the first year, if not just for your own personal benefit. Don’t forget that most startups begin life being paid for out of the personal accounts of the owner. As such, it is always going to be in your best interest to keep spending as low as possible. Otherwise, you could find yourself in a tricky situation, not just in your business but personally.

So how do you keep spending under control? Well, it’s worth considering adopting a flexible business model. This means that you should be able to think about working from home rather than from the office. If your business model permits this type of possibility, it is certainly worth considering. Immediately, your costs will be under more control, and you’ll be able to squeeze out some of the heavier bills like rent or property purchases.

You might also want to think about ways to cut the costs of your staff. For instance, you may want to consider the possibility of outsourcing some or all of your staff instead of hiring a permanent number of workers. By doing this, not only will you avoid a massive number of salaries that need to be paid, you can cut the expensive responsibilities business owners typically have for their workforce. For instance, you can cut out health insurance and other expenses that usually come as a package deal with a hire.

Just One Year?

You’ve probably heard a lot about the risks with expanding your business too rapidly or moving far too quickly. When you do this, you open up the possibility of your company failing simply due to the costs growing out of control. But that doesn’t mean you can stay still. Your business must continue to move forward if it is going to succeed. One of the reasons why some businesses fail is because there is simply no plan for the future and no possibility for improvement. As such, there is a limited reason for clients to be invested in the company.

To avoid this issue, you always need to be thinking regarding the five-year plan. It’s not about what’s happening tomorrow or even a year from now. You always need to consider the future of your company and what you need to do to secure that future.

With this information in your hands, you should be able to avoid the problems that cause a business to fail.

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