July 1, 2016
4 Guiding Principles Every Startup Should Master
Today’s startup is faced with lots of challenges, from excessive competition to lack of marketing funds. The decisions that the startup founders make go a long way towards determining its success or failure. Statistics suggest that 90% of all new businesses fail. It’s important that the founders or management of young entrepreneurship align their business with some proven success principles.
Any successful entrepreneur will tell you that resilience is one of the key qualities that guarantee the success of a new business. If the firm isn’t able to expect change and learn how to welcome it, it goes without saying that it’ll fail whenever things go south. Changing environments should be seen as new opportunities to invest in new services and products. A successful business is able to redefine, reinvent, and reposition itself based on how its environment changes. Have an open mind and think of new ways in which you can move the firm to the next level.
2) Know your Business
It’s a constantly changing and challenging business world. Many a time, organizations will lose their sense of identity, value focus, and strengths. In order for an infant business to outstanding bad weather, it must be aware of its purpose. It should clearly understand its core strengths and focus on improvement. All employees should be educated on the purpose and mission of the business. If you don’t know the facts, you can’t be able to tap into existing opportunities. Ask the following questions:
- What is value do you provide? Who needs who you do?
- Are you doing anything better than anyone else? What and how?
- What are your core strengths as a business? What are the main qualities that separate you from any other business? Are these things that your customers or employees could perceive as valuable?
- What are the key weaknesses of your business? Are these things that could negatively inhibit reliability, consistency, and delivery in your firm?
- What threats does your business face? Do these threats have real potential to degrade or even floor your business?
- What opportunity areas are there in your business? What sectors or areas can be improved?
3) Eliminate Obstacles
There are many obstacles that face a new business, and one of them is a lack of communication. New businesses that are able to remove the obstacle of communication will easily be able to create new opportunities. As a firm, your information sources should be your employees and your customers. You need to know what they think what they hear from others, what moves them, and what they share. Great businesses are constantly in contact with their customers. They need to get new ideas. Consider the following questions:
- How well do employees share internal information?
- What methods do you use to share critical information in a timely fashion?
- How does technology help with communication in your firm?
- How your employees are held accountable for making good decisions and sharing information?
- Do you involve your employees in the gathering of information?
- Do you regularly assess your customers to find out what they think about your business, as well as learn about their future needs?
4) Utilize Opportunities
Many startups complain that they have limited opportunities, and this success principle can be essential. Ideally, a firm that’s well versed in its strengths, weaknesses, and threats will very easily invent high-value opportunities. Brainstorming on the available opportunities and then selecting the right one to go with based on the business’s current situation is the right way to go about it.
If you’re a startup founder or management-level employee, these four principles can make a whole lot of difference!