Surviving Your First Year As a Business Startup
Some people equate the first year of starting a business to completing a marathon, but this is far from accurate. A better metaphor would be comparing a business startup to being dropped in the middle of a desert with nothing more than your wits and a small backpack full of essentials.
Surviving your first year alone as a business is commendable and takes a massive amount of skill, determination, and perseverance. However, as a business owner, it takes more than just that to continue down the road to success. According to Investopedia, the following are the most common reasons that small businesses fail:
- Faulty business model or infrastructure
- Lack of funding or capital
- Inadequate management team
- Unproductive marketing initiatives
We would be doing ourselves a costly disservice by not learning from the previous mistakes of others. Let’s see how you can be better equipped to survive the first year as a business startup.
Faulty business model or infrastructure
You may have a brilliant business idea, but it won’t be adequately monetized without a well-thought-out business model. Banks and venture capitalists will insist on excellent, thorough documentation, but self-funded startups often skip this step. It might seem like you’re putting on the breaks just as you get to the race, but a well-laid business model can save countless hours and lead to an increase in investment.
Lack of funding or capital
Many business startups fail repeatedly simply because they don’t have the capital to keep going until they turn a profit. Getting to the point of paying yourself a fair wage is one thing, but you also need money for overheads, stock, and other unforeseen expenses. The situation can be even more nerve-wracking if you are starting with a poor credit rating. Luckily, access to bad credit title loans is straightforward online and can get you through the initial pinch.
Inadequate management team
You might scoff at the thought of an inadequate management team since often a startup only has the owner as the only employee, and certainly as the only senior member of staff. However, remember that your time is valuable, and you will be expected to fulfill many different roles. As your business becomes more demanding, ensure that the management of staff and their responsibilities are given priority so that your business can grow.
Unproductive marketing initiatives
Marketing can be a never-ending expense if you don’t reign it in. It’s true that in the early stages of a startup business, you need to market yourself; however, ensure that you have set realistic figures for this expense. Whenever possible, aim for word-of-mouth marketing and think outside of the box. In times where you might feel inclined to stretch your budget, remember that Tesla is now one of the world’s most successful companies, and their marketing budget is zero.
Business startups take an extreme level of determination and perseverance. Regardless of how well you might plan, there will always be bumps along the way. Having a solid, workable plan and learning from others is your best road to success.
This article has been published in accordance with Socialnomics’ disclosure policy.
