Startup Success: Clearing Common Hurdles In The Difficult First Year
Launching a business is a wonderful thing that can potentially change your life forever. However, nobody ever said the road to success would be smooth, and that’s especially true in the first year of operation. After all, you’re essentially trying to create something out of nothing.
Here are some of the most common problems you’re likely to face, along with what can be done to overcome them.
#1. Struggling For Capital
Investments will be required throughout every stage of the venture. However, the costs – at least in proportion to revenue – are greater than ever in year one. Without that cash, though, it’ll be very difficult to progress. A line of credit loan is a fantastic option that can enable the business to grow. That’s not an excuse to start wasting funds, but it can be the safety net required to truly get things off the ground. Unfortunately, a lack of financial power is the chief reason behind so many failures. Do not become a statistic.
#2. Poor Customer Reach
Essentially, the success of your business comes down to whether you can gain sales. The formula for success is clearly more complicated than that, but you can’t achieve anything without those clients. Branding elements will give audiences something to relate too. Moreover, these marketing techniques will guarantee that you build familiarity and excitement. Meanwhile, teaming up with other non-competing businesses can cast your nets even further afield. If you still fail to see those sales figures, perhaps there’s a problem with the products.
#3. Low Retention Rates
Sustained success isn’t simply about gaining the first sale, though. Loyalty and repeat custom are crucial factors if you want the company to keep pushing forward. If customers aren’t coming back for more, this is something that needs to be rectified ASAP. Offering freebies and using other relationship-building techniques will help. After all, when a consumer likes the people behind the brand, they’ll be far more likely to shop. Incorporate special deals for valued clients to show that appreciation while using soft sell tactics. You will not regret it.
#4. High Staffing Costs
There’s absolutely no question that employees play a vital role in the business blueprint. Having said that, they need to offer value for money. If they aren’t currently providing this, you need to reduce costs or improve efficiency. Outsourcing can be a fantastic solution for new companies. Meanwhile, running work experience and intern placements also offer cost-effective productivity. Finally, some jobs can be completed by technology with greater efficiency and accuracy. It’s a tough call to make, but sometimes you have to do what’s right for the business.
#5. Loss Of Direction
The road to success can be quite a bumpy one, and you may veer away from your vision at various stages. However, losing sight of your targets and strategies will only make things worse. A clear mission statement is essential for any modern business, and you must hold it dear at all times. Support this with great internal and external communication to ensure great results. You’ll never choose the best path if you don’t have a clue where you’re headed.