Surviving and thriving as a new startup
You may have probably heard about horror stories of business failures among startups. According to Cambridge Associates, the percentage of startups that fail has topped out at a whopping 79% during the dotcom bust. But before you start to get dissuaded and feel doomed to fail, there are some things that you can do to survive and thrive as a new startup.
- Create a business plan – While it is tempting to skip making a business plan, creating one is an effective way to hone your vision. You don’t necessarily need to write a document with over a hundred pages, but your business plan must outline your business model, the problem that you aim to solve, your target market, and an achievable timeframe to launch and reach your desired level of profitability
- Limit your expenses – A lot of new startups fail because they run out of money. Regardless of how much capital you can shell out, it makes sense to keep your expenses at a minimum until profits start coming in.
- Focus on the core business functions – One common mistake that entrepreneurs make is that they tend to juggle all tasks. However, not because you are always busy doesn’t mean you are being productive because not all these tasks actually propel your business forward. Hence, it is important to weigh how you spend your time especially in the first few months or years of your business.
- Measure and improve – It is essential to ensure that your time and resources are directed towards the right places. To know how well you perform, it is good to back everything up with actual figures.
- Provide value to customers – Helping clients is as important as creating an awesome business. Strive to deliver their needs and modify your offerings based on customer feedback. Moreover, you can also achieve customer loyalty by providing strong customer support.
- Grow your network – The more people you have in your network, the better. Reach out to professionals in the same industry, as well as other relevant people who can become your potential client or business partner. Remember, the more people you reach and connect with, the greater the opportunities that await you.
- Don’t be afraid to try out other feasible means of achieving greater efficiency – Don’t be afraid to test out other effective approaches to reach a higher level of profitability and cost-savings. Keep in mind that it can take more than a year before a business takes off, so give your business up to about 24 months to get off the ground. While doing this, you may also analyse and implement different approaches that may work for your business.
Starting your own business can be risky and frustrating, but once you get the right business model and adopt various strategies based on your business’ needs and current status, you will find this a rewarding endeavor.
Most small- to medium-sized businesses face the challenge of limited in-house staff, but as business leaders try to minimize costs, they make the typical mistake of doing everything by themselves. Good thing, with the advancement of technology, the outsourcing model has been made possible. Through outsourcing, startups can get more experienced professionals into their team and gain access to their specialized skills at a fraction of the regular costs.
Direct Sourcing Solutions is a global outsourcing innovator that provides various services ranging from software development, accounting and finance, market insights or lead generation, virtual assistants, and digital marketing. What makes DSS different from other service providers is that the metrics-driven and technology-enabled solutions delivered are tailored to the unique requirements of each client.
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