A relatively new Bloomberg study reveals – around 8 out of 10 entrepreneurs fail within 18 months of starting their business. An infographic published in a Mashable post amazingly brought out the key reasons that affect startup success rate.
The problem is, many aspiring entrepreneurs think sprouting business ideas are the only key to success. But, that’s just the stepping stone. There are many experienced startup owners who believe that besides the macroeconomic factors, startup success rate also depends on good or bad business decisions.
Cash crunch is not the only reason for failure. There are a lot of opportunities in the global market where you can do well as a freelancer or consultant. So you see, you don’t need to have a startup business to succeed in life. But if you do, you must be diligent. If your business is falling apart, you must investigate what could be the possible reasons.
You, as an entrepreneur, need to dig deep and find out what’s really going wrong in your business besides the financial collapse if there is any. You’ll be surprised to know that there are almost dozens of factors which can drastically impact your startup success rate.
We pick these stories to define what can change the luck of your business.
Connect with Customers for a Positive Startup Success Rate
Connect with your customers to get product or business ideas. You really need to see if your customers like your idea, or have any requirement for it. Having customer focus will also determine your startup success rate.
As an entrepreneur, you will need to focus on customer expectation and not on investors to be able to survive. It will be a mistake to put investors ahead of your customers.
Don’t End up Investing too Much
Keep an eye on your initial investments. You really need to have a valid justification for the money you intend to invest. Startup entrepreneur Ben Yoskovitz, described why his startup, Standout Jobs failed.
He said they didn’t have enough understanding of the market and the product development process. Also, they raised too much money too early. They didn’t need the money at that time.
But, the money could be used later when it was more important. Therefore, business planning is required for investment projection and improving startup success rate.
Being Aggressive is not so Bad
It’s not really bad as people think. An aggressive attitude will be required as you will need to make lots of calls to your potential clients.
Remember, a major push will help speed up your startup success rate.
Start Your Journey with Right Partners and Employees
The initial years will be too important for your startup success rate. So wisely choose the co-founders, partners and employees. After all, you can’t do everything alone.
Pixloo.com was doing amazingly well. The entrepreneur co-founded the company with a talented developer. Everything went well initially as both of them worked hard and started creating lots of customers. But soon disagreement started over raising investment fund. They ended up selling Pixloo just for pennies.
Also, know how to measure business success rate. First few initial years might not be so rewarding financially. But you’ll need to evolve. When your business startup is still small, generate weekly or monthly report of income and see customer response.
Your startup success rate will depend on how quickly you evaluate your present performance and make major changes or corrections for improvement.