Many people who want to start their own business never do it. There are many factors responsible for this and three main factors are fear of failure, lack of funds, and lack of knowledge of starting a business. Let’s understand how startup failure has become so common nowadays with the help of some statistics by the Smallbusinesstrends.com website:
i) About 50% of startups or small businesses fail in the first 4 years.
ii) In fact, of all the startups or small businesses started in the year 2011:
- 4% made it to the 2nd year
- 3% made it to the 3rd year
- 9% made it to the 4th year
- 3% made it to the 5th year
iii) Leading causes of startups or small business failure are:
- Incompetence: 46%;
- Lack of managerial experience or unbalanced experience: 30%;
- Catchall category (includes fraud, neglect, and disaster): 13%;
- Lack of experiences in the line of goods or services: 11%.
In this blog post, we are going to discuss 5 tips to mitigate the fear of failure. By using these tips, you can easily lead your startup to the way of success. So, let’s start.
1. Start a business which you love
If you don’t love your job, you won’t be able to give 100% to your work. And, after some time, you will get bored with your work. A successful startup needs years of hard work. In initial days, you have to work extra hours, think creative ideas, face some cash crunch and much more. You have to prepare yourself for all of these challenges. Keep in mind that you will not succeed in every plan that you make but you should not lose hope.
2. Raise the right amount of capital
For raising a startup, you need to put enough money into it. You have to do proper planning to raise enough funds. Furthermore, you have to find more funding at some point to keep different types of bills paid and your dreams afloat. You will have to strive to find investors in the beginning stages. You can look for equity crowdfunding which is now becoming an extremely lucrative option for the startups.
3. An efficient budget management
Only getting huge funds does not make a startup successful, but managing funds in an efficient manner do. You should keep a thorough track on all the expenses. If possible, try to opt those channels where you can get the result in less amount expenditure. For example, you can take help of free website builders like Site123.com, that needs no coding or design skills, dragging to dropping anything. Just upload your content and get a designed working cross-platform website, fully adjusted to all devices available on the market to make your business website in very less cost. Furthermore, it’s crucial to know the need for your company to accomplish your budget accordingly. In the case of limited resources, startups need to learn the skill of doing more with fewer resources.
4. Keep marketing strong
An efficient marketing strategy works wonder for any startup. There is much possibility that many people don’t know your startup; therefore, you need to focus more on marketing. You can invest more in developing a good marketing team. You can try direct mail marketing or digital viral marketing which has become the holy grail for startups want to get their business message out and have it spread like fire. Nowadays, search engine optimization, social media marketing, content marketing and pay per click are in trends. You make your marketing strategy combining all these marketing tools.
5. Discipline, Determination, and Ability to adapt changes
For a successful startup, self-control and strong self-imposed personal standard are important. Nothing big can be achieved in absence of discipline and determination. Self-discipline and determination lead to positive work ethic, which further leads to getting simple as well as complex things are done efficiently & effectively. In addition to this, a successful startup should always willing to adapt changes whether it is new challenges or new technologies. You need to offer something different and unique to your potential customers that no other competitors are offering.