Startups germinate as a result of the passion and enthusiasm of an entrepreneur who wants to start something on his own. Tens of thousands of businesses start up every year, and a lot of them close down within the same year. A vast majority of the remaining companies that do make it through year may fail over the next four years.
According to business experts, entrepreneurs don’t cite a thousand reasons for their failure. There are only a few crucial mistakes that seem to plague every new business.
Let’s take a look at 3 of the main mistakes that your business can avoid in order to not become just another statistic in the list of failed startups.
1. Short-Sighted Objectives
It is true that short-term goals are necessary for the company to assess whether it is heading in the right direction or not. But more often than not, startups make the mistake of not aligning their short-term goals with their long-term objectives.
The success of your business is not the same as getting funded. Yes, funding brings in a lot of money that makes it look like you’re already on the path to success, but it’s a misconception that can kill your business. Getting funding doesn’t mean your objectives have been met.
Getting big investments can help you make the headlines in the papers, but it can also give you a false sense of achievement. Funding is just the beginning of a long journey. You need to develop products and services to attract customers.
Never lose sight of your goals. Even after you get the funding you need, keep focusing on the bigger picture, and the long-term goals and objectives. Make sure your company never forgets its vision. Creating products, providing services, increasing your customer base – these should be your constant goals.
2. Inefficient Hiring & Over-Hiring
Hiring the wrong kind of employees or hiring too fast can sometimes spell the end of a business. Employees are the most valuable asset of any company. They form the backbone of every organization, but inefficient employees can bring it to its knees.
Hiring is a crucial activity for any startup and needs to be done with a lot of planning. Set up the parameters based on which the employees are to be hired. List out the qualifications, experience required, etc. so that people who don’t match them can automatically be ruled out.
Testing new employees for updated skills will tell you how long they will take to integrate into your business. You don’t want too many people in training for too long. You need individuals who can learn fast, take up initiatives, and start contributing to your business.
Don’t over-hire! This is a common mistake that many startups do, resulting in a massive drain on their finances all too soon, leaving them strapped for cash.
According to Kevin Harrington, an entrepreneur, and speaker for over 30 years, consistency is one of the key characteristics of any good business. As an entrepreneur, it is your responsibility to make sure that you never procrastinate. Why put off until tomorrow what you can do today?
Procrastination makes a business miss deadlines, ignore customer calls, and delay deliveries. This leads to a whole lot of work piling up, so much so that it can feel very overwhelming in the end.
The key to being successful is to be consistent in what you do. A startup that focuses on being consistent in its activities will be able to achieve its goals regularly, resulting in happy customers, enhanced brand image, and a steady stream of revenue.
Procrastination is a horrible habit that you must steer clear of if you want your business to succeed. It helps you plan better, executes the plans, and achieve the results you desire for the growth of your company.
You’ve put so much energy, time, money, and other resources into starting your business. Don’t let it all go to waste by making the same mistakes that others have made. Or if you are contemplating starting a business, following the points listed in this article might help you avoid failure.