Tag Archives: business startups

Top reasons for Startup failures

Success and failure

Do startup companies have all the fun? They create new markets, disrupt old ones, receive enormous amounts of venture capital, have the best office building – and more. Is it really that easy to start a business and reach stardom.

Statistics show that the vast majority of startups fail. Reasons for failure could be because of premature scaling or for doing things correctly but in the wrong order or at the wrong time. There are many opinions and experts who will provide different advise and reasons as to why startups fails and how to keep a new business afloat in the perilous waters of the entrepreneurial sea.

All entrepreneurs have made mistakes, are making mistakes, and will continue to do so. Generally, it is not one mistake that sinks a startup, rather multiple reasons. There are, however, some key factors that can certainly weigh down a business and possibly sink it forevermore.

Research by CB Insights highlight the top reasons for startup failures:

Startup failures

Tips and advise for first-time entrepreneurs

Entrepreneur Advise

What does it take to enter the world of entrepreneurship today? It is very easy for first time entrepreneurs to easily be overwhelmed with the plethora of advice, books, blogs and ideas out there on how they should be, look and feel about their startup.

Starting your first business can be an extremely stressful experience—you’re exploring new waters and you’ll soon have to take risks at a level that you’ve probably only ever dreamed of before. Managing that stress and staying productive during your first entrepreneurial adventure is key to the success of every business owner.

Here are a few tips and words of advise for any entrepreneur:

  • Start a business you are passionate and knowledgeable about.
  • Pick a business idea that has a big market opportunity.
  • Nail your mission and vision.
  • Raise as much startup funding as you can.
  • Constantly monitor your finances.
  • Find a solid teammate asap—two brains are better than one
  • Don’t be afraid to ask questions—it’s the only way to learn.
  • Look for patterns in advice—then filter, prioritize, and take action.
  • Research the competition
  • Commit to a regular workout schedule.
  • Use Linkedin and other social media to spread your personal and business brand.
  • Ask for advice from other entrepreneurs.
  • Eat healthy and exercise on a regular basis.
  • Build your personal brand—authenticity is key.
  • Surround yourself with inspiring people—avoid naysayers.
  • View all feedback as a compliment—time spent is a gift.
  • Be open to advice.
  • Work with people you like.
  • Develop a great elevator pitch.
  • Hire the right people.
  • Never stop networking.
  • Provide great customer service.
  • Hire an experienced startup attorney.
  • Get comfortable with public speaking.
  • Focus on building a great product or service—but don’t take forever to launch
  • Market and then market some more.
  • Hold yourself accountable.
  • Find the fun—in even the most menial tasks.
  • Just Do It

How to take a start-up to the next level

Business StartUp

Taking your start-up business to next level and becoming a market leader is a very challenging task. Start-ups that are able to get off the ground have a long way to go before they become a leader in any industry.

Does this sound familiar? You are an entrepreneur with a small business that is growing nicely and brings in a nice cash flow but there is enormous potential to do a whole lot more. You are currently doing most the business operations yourself – marketing , sales, accounting, social media, perhaps with the help of one or two full or part-time employees assisting you. You have a whole array of ideas on how and where you would like to take and grow your business but are only able to act on a few of these ideas before taking on the next one.

All start-ups will have problems along the way. Here are a few ways and steps to take your start-up the next level.

Your business plan is not cast in stone – As your business grows you will see that your business plan will also change and evolve. Always go back to your plan to re-assess your goals, vision, and  objectives to see what is working and what is not.

Make sure to create good operation manuals – Make sure you documents every aspect and activity of your business with an operations manual or even  checklist. This will come in handy when you have hand over responsibility of certain operation to another person.

Start a blog and connect with your target market – Only do this if you are able to post at least 3 articles per week. You can also choose to outsource this to a top writer. A blog will take time to show results, so keep an eye on your analytics.

Assemble a good team of employees – You will never grow your business all by yourself, so make sure to employ a good team of people who can function together.

Find a mentor – Find someone who has been there, done that, and learned lessons the hard way. It is important to have someone to talk to and discuss any idea or issue you have for free.

Be frugal with your expenses and trim the fat – There are a number of things you can do from downsizing your commercial space or even converting to a virtual office, or even moving from permanent employees to freelancers for example. The more you save the more you can manage your debt and spend on things that will grow your business.

Monitor and practice good SEO techniques – Without good SEO you might as well not be online. See what your competitors are doing and then do it better. It is critical that you understand what you are doing with SEO and that it will take time to see results.

Be sure to hire the right employees –  Everyone will make mistakes when hiring, so it might be a good idea  not to do it on your own. Remember if you cannot fire never hire. Don’t keep an employee because you don’t want to hurt their feeling. This is not good for your business or the employee.

Cherish those good reviews and testimonials – The best form of marketing are good reviews via word of mouth. Engage with your clients and find out why they like your product. their reviews with boost your credibility and market reach.

Stop being a control freak – In order to succeed you have to let go of wanting to control everything and be able to delegate different roles and tasks to your team. Proper documentation and operational manuals will help you to delegate tasks.

Take into account the location of your business – Take into account the location of your business especially when it comes to income tax, corporation tax, cost of living, and property tax.

Things to ask when starting your own business

Business Startup

Being self employed and your own boss is a dream of any entrepreneur. Before you decide to leave your stable 9 to 5 job, you need to think if you have enough cash saved up before your new venture will be able to support you.

Statistically stating your own business is a risky affair and only around 50% of new status will survive through 5 years. It is always a good idea to accept that starting any business is a risky affair.

Before you leave your job make sure that you are financially prepared for the road ahead. Here are a few things to think about before you take the leap and start your own business.

Make sure you have healthcare insurance. If you leave your job this might also mean that you will also have to give up on your health insurance plan. Once again, it is a good idea to have enough funds saved to cover your health insurance plan knowing that it might take six months to a year before your new venture produces enough cash flow to cover your medical insurance.

Ask yourself if there is a Plan B. Starting any business is risky and if you fall into the 50% that fails, you will need a Plan B. Make sure that if you are in an industry that requires state licensing, make sure you keep this up-to-date.

Make sure you can cover all your fixed expenses. When leaving your stable 9 to 5 job will still mean you will have to continue to cover all your fixed monthly expenses. Before leaving make sure you have enough money to cover things like your mortgage, utilities and transportation expenses. When starting your won business the last things you need is to more stress and a whole lot of unpaid bills hanging over your head.

Have save enough money for emergencies? Before leaving the security of a stable job and income, make sure you have an energy fund stashed away somewhere. This emergency fund is notably for a true emergency but also might come in handy if your venture goes through some hard time or even worse fails.  before starting your own venture it is a good idea to have at lest six months of savings stashed away to cover any sort of emergency.

Make sure to factor in a savings plan when you start your venture. When starting your own business make sure you factor into your business plan a retirement plan. Saving money for retirement when you are no longer an employee is a whole lot harder.

To improve your chances of success make sure you ask yourself all the right questions honestly and prepare a realistic business and financial plan. Ask yourself the following questions:

Can you persevere and get through tough times?
Do you have a the desire to be my own boss?
Do the judgments you make in life generally turn out well?
Do you have an ability to conceptualize the whole of a business?
Do you possess the high level of energy that is sustainable over long hours?
Do you have significant specialized business experience?
Do you have the qualities like willingness to sacrifice, interpersonal skills, leadership ability, and optimism to succeed in your new venture.
Why are you starting a business?
What kind of business do I want?
Who is my ideal customer?
What products or services will my business provide?
Are you fully prepared to spend the time and money needed to get my business started?
What differentiates my business idea and the products or services I will provide from others in the market?
Where will my business be located?
How many employees will you need?
What types of suppliers do I need?
What will your start-up costs be?
Will you need to get a loan?
How soon will it take before my products or services are available?
Who are your competitors?
How will I advertise my business?

Starting your business and entering the world of entrepreneurship can be the best thing you will ever do but it can also the biggest nightmare.

Questions to ask about Starting a Business

Start up Questions

When you decide to start a new business it is exciting however very daunting. Where do you begin? Here are a few questions you should be asking and seeking answers too.

  1. Should I make my business a private or public company or partnership or  a sole proprietorship?
  2. Where should my business be?
  3. How much should I capitalize my business?
  4. How likely will it be that I can get financing?
  5. How much in share ownership of my company should I give up to investors in my business?
  6. How big should a stock option pool for employees be?
  7. How can I get a venture capitalist to listen to me?
  8. How do I choose a great name for my business?
  9. What are the biggest challenges with starting a business?
  10. What kind of business should I have?
  11. What are the biggest mistakes made by entrepreneurs?
  12. How can I protect my ideas?
  13. Do I need a lawyer?
  14. How can I obtain the name I want?
  15. How can I drive traffic to my website?
  16. What do I do to check that someone has not already started my idea?
  17. How do I create a business plan?
  18. Where can I get money for my business?
  19. What permits, licenses or registrations do I need?
  20. What do I need to worry about in hiring an employee?
  21. What kind of records do I need to keep for my business?
  22. What kind of insurance does my business need?
  23. How should equity be divided?
  24. What online resources are helpful for learning more about starting a business?

Now you are ready to start that fabulous business of yours! You are armed with all the right information; you have done your research. Now have fun!