Every budding entrepreneur embarking on a startup journey must grapple with the stark reality – it’s an uphill climb littered with countless obstacles. The harsh truth is, about 90 percent of startups eventually fail. The conflation of risks, mistakes, and failures can seem disheartening. However, understanding this grim statistic is crucial for strategizing the future of your young company.
Longevity should be paramount to your startup’s success, given no entrepreneur dreams of creating a business with a pull date. Every startup aspires for growth and wishes to cement its footprint for decades. The key to enduring success lies not only in launching your startup but also in building a business that withstands the test of time. Building with a future in mind requires the right tools, mindset, and people to steer your startup towards success.
One critical aspect of securing a startup’s future is to select an optimal business model — the lifeblood of your enterprise. This roadmap defines how your business conglomerates to generate profits. In essence, it projects accurate revenue predictions, offering the flexibility to tweak the business plans if the forecasted outcome isn’t favourable. However, one common pitfall that startups plunge into is acquiring the wrong business model, resulting in their downfall. It’s imperative to underpin your business with a repeatable, scalable, predictable, and lucrative business model.
While planning the future of your enterprise, considerations should extend to the prospects of your exit. While an exit strategy may embody the endgame for most, it surprisingly underpins stability and smooth transitions for your startup. Whether you decide to retire, transfer ownership, or sell off, an exit strategy offers a fail-safe blueprint for your business, safeguarding your startup investments while limiting losses.
A startup’s lifeblood lies in cash flow — whether it is paying suppliers and employees or investing in business expansions. Maintaining a vigilant eye on your business’s cash inflow and outflow becomes vital. Any cash flow issues could result in the collapse of your startup, as having a brilliant business idea is futile if there isn’t enough monetary resource to sustain and grow your business.
An entrepreneur cannot be a master of all trades. The need for professional, technical, legal, and other sorts of expert advice will invariably arise during the course of your startup journey. Surrounding yourself with the right individuals — lawyers, accountants, insurance professionals, and bankers — can be an invaluable asset in supporting and guiding your business growth.
The foundation of a successful business doesn’t only lie in strategies and numbers but also in its people. Building a competent team with a solid work ethic resonating with your business vision is crucial. Fostering an emotional bond and instilling value recognition are keys to maintaining this human resource, thereby propelling your startup’s success.
Building a startup involves a fair share of excitement and uncertainty. The path may seem tedious, fraught with stumbling blocks and predicaments. But remember, an intelligent blend of exit planning, choosing an appropriate business model, surrounding yourself with the right people, and keeping a strict eye on cash inflow and outflow may be just what you need to defy the gloomy statistics and emerge successfully. Adding to that, always bear in mind that you’re not just launching a startup; you’re building a future enterprise.
