Tips for Avoiding a Startup Failure
There are many thousands of new businesses started every year and within the first 12 months, more than half of them will fail. Over the next three years, half of the ones left will cease to trade, leaving just a quarter of all new businesses successful. Success does not have to mean making you a millionaire; it is a venture that you enjoy that provides you with some extra income. Most businesses fail for similar reasons and here are a few tips to help you avoid being one of them.
Not Enough Finance
The main reason startups fail is because they are underfunded. People do not always realize the outlay that is needed, and although it is not always huge, it can be a stumbling block when you are living on a tight budget. If you are offering a service or intend to start blogging, you will still need to have a great website and a hosting service that is reliable. These involve laying out money, even if you build the website yourself.
Often, all that is needed is a quick injection of cash for a short period while you get your venture off the ground. As with any short-term financial problem, the answer could be a payday loan. This is because they are easy to apply for, you get a quick decision, and if you are accepted you do not have to wait weeks for the funds to reach your bank. One of the largest short-term lenders in the UK recently ceased trading but if you are looking for a loan alternative, you will find lenders who offer similar services, which are sometimes better.
Poor Security Measures
If you’re setting up a business, it’s vital you protect your digital data. Without the right measures in place, it’s only a matter of time before you lose your data or it gets stolen. This could mean months of work out of the window or even reams of personal data lost to identity thieves. To protect your data, use cloud services to store and secure it. There are plenty of hybrid cloud engineering services out there you can use to help with this, so even if you have no idea what the cloud is, you should still be able to benefit from it.
Lack of Awareness
No business will succeed if no one knows it is there. You cannot leave it to chance that people will find your web page, you have to promote it. In years gone by this could have been costly, but now there is social media, which can be time-consuming but is also free of charge.
Open a business page on any of the social media platforms and make posts to it regularly. Always be positive in what you say even if someone is complaining. This will help to build trust in your brand, and you will be surprised at how quickly the number of followers can grow.
Social media has billions of users every day and this makes it a very powerful marketing tool.
Choose Something You Enjoy
If your new venture involves something you know and enjoy, it is far more likely to be successful. Any new business takes hard work and determination, and you will have the motivation if you have chosen a business that you find enjoyable. This is the reason why many new business owners opt to turn their hobby into a money-making venture.
Facing the Challenges
You will face many challenges when you first start your business, but you need to face them head-on if you want to avoid being one of the many startup failures.