We’ve all heard the phrase, “Slow and steady wins the race”. But did you know that this phrase can apply to entrepreneurship? With the overwhelming success of created start-ups like the “yo” app and Facebook, it’s easy to forget the importance of employing a methodical approach and building a strong foundation for a start-up.
According to Forbes, 50 percent of all small-businesses fail within the first year, and 95 percent fail within five years. This statistic can be frightening for those either looking to start their own business or who are currently within the first couple years of creating their start-up business. However, this statistic demonstrates the importance of building a strong foundation for one’s business. Here’s what you can do to lower the chances of your start-up becoming a statistic:
- Don’t expand your start-up too soon-Your business should not take on more than it can handle. Approach growth slowly and place more emphasis on building a solid foundation for your business instead of a riskier get-rich approach.
- Don’t forget to brand your start-up– It’s important to take the time to figure out how your business differs from your competition. By identifying the brand of your start-up, you can carefully identify your target audience and find a profitable niche for your start-up which will help you sell your products/services more effectively.
- Carefully build your team– A great team of individuals who possess the skills and talents is essential for the success of your start-up.Without a great team of people who identify with the brand, visions, and values of your business and/or start-up, it will be hard to sustain your small-business in the long-run. Use great caution when assembling your team of people and make sure everyone is on the same page.
- Don’t neglect the importance of marketing-It’s a great myth to think that once you build your start-up,consumers will automatically come. A well-though-out marketing campaign can be effective in developing brand awareness with your target audience through word-of mouth, which will give increased sales for your start-up in the long run.
- Think Twice before making a quick decision– When making crucial decisions for your start-up it’s important to always keep your start-up’s brand in mind, because any decision made in haste may damage your brand’s reputation. Always take the time to identify potential risks and weigh out decisions carefully.
While it’s true that most start-ups fail because of a lack of cash flow, most start-ups fail because of not enough attention is placed on building a strong foundation that will sustain a small business for years to come. By utilizing the ‘slow and steady approach’ to running your small-business and keeping in mind these tips, you can minimize the chance of your small-business becoming a statistic.
Image: Via Snarf.org