Starting a business is often risky and studies show that nine out of ten start-ups fail in their first five years. Nine out of ten of the survivors will fail in their next five years. What makes a successful start-up business and what do you need to do to make sure yours does not fail?
Be a Great Leader
Leadership is the name of the game here. A leader with a clear vision of how the business will run from the ground up is necessary for success. This strong vision needs to run from start to finish. A good leader will know how to lay the groundwork, raise the money, run the company, and give up or step back, if necessary.
A company sometimes fail when the leaders are too stuck in their way of thinking that they cannot see that there is a better way. If the leader is not personally ready to start a business, is accustomed to having a day job, and cannot function outside of their comfort zone, that can be troublesome.
There is no certainty as to when a company will turn a profit, as it depends heavily on market timing. As a business owner, you need to have a flexible mindset. If things need to change, then do so rather than trying to force what worked before.
Be Bold with Marketing
Another reason start-ups fail is the lack of sales. This means there was not enough marketing involved. The typical reaction to a slowdown is to turtle up and spend less. Spending less usually means cutting down on the costliest aspects of the business—usually marketing and advertising. This is a mistake that starts the downward cycle.
When nobody knows you and nobody’s buying from you, you should not hide in your cellar. You go out there and tell the world what you are about. Effective marketing can be done by running online ads or hiring a company that offers custom promotional merchandise. As long as people know you and your product, the sales will come.