Knowing whether your startup will succeed or fail does not require a crystal ball. In fact, successful entrepreneurs do not rely on luck or chance when they open a business. There are many steps to prepare for success long before you even start.
With proper preparation, their growth is less likely to be left to chance and more likely to be inevitable. How can you tell if your startup will boom or bust? Here are 6 important signs to indicate that your new firm will be the next big thing.
You will not have any business if no one is willing to pay for your service or product. However, there are startups out there that just decide to launch and expect that the customers will start coming. This is the wrong strategy because successful entrepreneurs make sure first that they will have that income before they take the leap.
A similar mistake is to expand too quickly without making sure that the business has a steady flow of income and controlling expenses. A startup grows as the paying customers also increase. Plus, a steady and continuous growth is better than unpredictable sales booms that are followed by lulls.
When successful entrepreneurs start a new firm, they have a strategy in place to slowly build the business. On the contrary, a startup that is spiraling downward is simply operating in survival mode, without looking too far into the future.
This is why a sign of a startup that is on the way to success is a good strategy for growth, with goals for the next 1, 5 and 10 years. They should also be meeting important targets, showing that the business is progressing well.
Unfortunately, the recession has made it tougher for startups to find funding, in contrast to the internet firms in the early 2000s who seemed to have it easy finding money. This is why these startups have to be smart about the funding they find. Operating in a lean way is one of the ways to do it, as even founders of the biggest companies now have started running their business in their garages or dorm rooms. Unnecessary company purchases, like a private jet, play no role in the success of the startup, so smart entrepreneurs know to invest their money elsewhere.
While secret recipes or formulas should never be revealed as a company’s proprietary information, everything else about the business’ operations should be transparent. A successful startup, in fact, has nothing to hide, especially as to how it operates.
Moreover, this keeps employees engaged and loyal to the business. They do not want to be involved in a startup that has shady practices, especially if there is a chance they will get caught up in an embarrassing expose in the future. This is why transparency is a very healthy sign of a successful business.
Despite the need to save money, a startup needs dedicated people with the expertise to execute the plan and see the company grow. Even the best entrepreneurs are never able to do everything from marketing to accounting, and also making the product itself. They know the value of partners or employees who share the vision and are capable of bringing it to reality. Moreover, by delegating these tasks, they can focus on more important tasks like finding clients or expanding the startup.
A successful startup is able to communicate well with customers, employees, and all oth
er partners. This is vital when there are bad news or complaints because the company’s success is dependent on how it addresses such situations. When they are able to do so, they can keep clients longer. Employees are also more committed when their bosses communicate the goals, celebrate their wins and discuss areas they have to work on.
Entrepreneurs who are also charismatic communicators
can sell their ideas and products to clients and potential sources of funding. They can use this skill to grow their company and make it successful.
Being an entrepreneur involves taking risks, they either become successful or they fail. There is no way to 100% predict that they can make it big. However, there are ways to ensure that the risk of failing is lower. These 6 signs will tell you that you are on the right track and that your startup has all the ingredients to make it big.