While a lot of startup companies are built around interesting concepts and products, their owners often fail to anticipate other critical business-related issues that must be addressed to ensure a startups sustained viability in the marketplace. Without careful consideration of these often overlooked issues, a company could be in serious trouble long before it even starts. The following are five keys for building a successful startup and some lessons to be learned along the way.
The Bills Will Not Pay Themselves
To get a startup company on the right footing, a business owner must be aware of every aspect of their startups financial ebb and flow. There must be enough capital available to support every aspect of a startups operation and eventual growth. The lesson to learn here is that failure to account for the mounting expenses will lead to bills not getting paid on time. This, in turn, will drive a new startup right out of business. For this reason, every entrepreneur must respect the fact that businesses must operate by the numbers. This is because the numbers do not lie.
Leadership Is Critical
Every successful company has a real leader at the helm: someone who possesses a vision that encapsulates their company's future. A leader provides direction and knows how to keep everyone else focused towards achieving the goals they set forth. Success is not simply a skill they develop, but it is a habit they live by as their reputation and track record improves over time. The lesson deserving attention here is that without a proven leader a startup will waste time and money following the whims of a leader whose inability to identify a profitable direction will lead the startup right into the ground.
A Startup Must Look Professional
Whether you are trying to impress customers to buy your product or convince a venture capitalist to invest in your startup, it is absolutely essential that your business exudes a professional air. From staff that dresses properly to the grout cleaning job of a company's floors, every aspect of a new startup should let others know the company is serious and professional. The thing to note here is that how clients and other business associates perceive a startup will weigh heavy on its success.
Failures Lead to Successes
Where a new startup has an 18-percent chance of succeeding, entrepreneurs who have failed at a previous startup have a 20-percent chance of succeeding. The idea of interest here is that failure provides entrepreneurs with the necessary experience to know what to look out for the next time they try to build a startup; however, this insight also tells new entrepreneurs that it might be smart to ask other startup owners about things on which to keep a close eye. Just because an entrepreneur has little experience going into their startup venture, that does not mean they cannot learn from the mistakes of others.
Get Into Business for the Right Reason
One of the most important keys to startup success is derived from a person's reasons for putting a startup in place. One of the reasons people often site is a desire to not have to answer to a boss or be accountable to others; however, owning a business is all about taking on massive responsibility and accounting for what happens to the business. The lesson here is that the right reason for creating a startup will ensure that the entrepreneur is dedicated to do what is necessary to make sure their startup has a fighting chance.
Putting a startup in place is serious business. No matter what you think about the business world in general, all successful businesses had to start somewhere. Whether it was in someone's garage, or it was an idea formulated around someone's kitchen table, how that idea was put into action ultimately determined if the startup's path was one that leads towards success.