Several start-ups go bust, but others scale dizzying heights of success. This article examines the thin red line between failure and success – and how to ensure the latter for your company.
The country is in the grip of a start-up revolution like no other. There are millions of great ideas and scores of entrepreneurs bringing those ideas to society. But there are also several other start-ups going bust after just a few years.
What are successful start-ups doing differently, and how can your company benefit from it? Consider these effective habits for successful start-ups:
* Get funding when you most need it.
Most start-ups begin operations with a little money and lots of prayers. But the first year of operations is often riddled with challenges, because there may not be a lot of business right away. But you can improve the company’s prospects by pitching for business using a business loan. Leading banks offer online business loans even to new companies, provided there are distinct possibilities of cadging revenues in the coming days. Timely funding can keep your goals on track.
* Be a business that people need.
In a competitive working environment, it is either a startling new idea that succeeds, or a business that fulfils a long-standing want. Tesla and its range of driverless buses falls in the former category, while a paid tiffin service catering exclusively to single people falls in the other. Be a business that does something unique that people need, instead of doing something that another business is already doing. The chances of success are higher with originality!
* Be prompt about billing and receivables.
The challenges of the first year of business are compounded by low revenues – which may, in turn, be the product of clients not settling your payments on time. Several clients are notoriously slow in clearing bills, while some may have a policy of paying only after a few months of receiving the invoices. Get smart – offer a discount on the final bill if the client will settle their bills early. Or a free service for every bill that is settled within a month of receiving your invoice. Getting paid on time is crucial for maintaining working capital.
* Cut down on wasteful processes.
You may certainly borrow a business loan to pay for daily office working, but you will find that curbing areas of unnecessary expenditure can save a lot of money. Take stock of monthly outgoes – have you hired more staff than necessary? Will basic laptops be better than Macs? Is the pantry buying expensive food items? Pare down the expenses to save money – and you can have sufficient working capital on your hands.
* Stay the course.
The daily challenges of running the company can wear you down. There may be times when you may feel like quitting it all. At these times, it helps to remind yourself why you started the company in the first place – and that persistence and daily motivation will help you achieve your dreams.