An estimated 75% of startups fail. Some suggest that the data might even be closer to 90%. Patrick Henry, CEO of QuestFusion, writes that more than 50% of start-up companies fail five years after they’ve opened shop and more than 70% fail after the tenth year.
You are now ready to take the company to the next level. You’ve sought advice from friends as well as experts. Some told you to reign it in. Other said to invest in technology or to shop for the latest software while others talked about the power of digital marketing.
Before you make the big leap, below are a few ideas to add to the many that are already swirling in your head.
Covering the Basics
The focus when you started your business remains the same: your product and your customers or users.
These two concepts will continue to be your compass when making decisions about growing your company, whether it’s about opening a new store or increasing your staff.
Building and Managing Your Organization
You’re developing your products. You’re pushing them out the door. Your redesigning products. You need to meet the demand of your customers at a fast yet efficient phase. As a start-up, that is the focus.
The tricky part has always been maintaining such focus while building on the other areas of your operation. Items such as office or personnel policies take the backburner. Sometimes, only when an issue comes up — whether it’s about absenteeism or office items being stolen — that policies or rules are put in place.
Avoid the chaos by giving attention to how you intend to organize and manage your company. A key component of your organizational development is how you grow your staff. Hiring more doesn’t mean getting more jobs done and sending more products to customers.
Recruitment activities, like interviews, are now simplified with the use of digital platforms such as Skype, Viber, or FaceTime. Various on-line services are out there that allow companies to search for candidates quicker. These technologies significantly cut recruiting hours and make efficiency better. It also gives you the opportunity to screen as well as hire the right candidate.
Another area to consider is the management style to use. One of the popular approaches today is called lean management.
Where to Invest
Some would prioritize investing in people by providing the necessary training to build capacity or expanding personnel benefits to increase motivation. Good strategies.
Others would focus on acquiring the latest technology, whether its equipment or an enterprise solution. The latest equipment will address the delivery of your product (e.g., getting the latest digital printer in the case that you have a printing business). An enterprise solution will effectively integrate various components of your business, like inventory, sales, marketing, as well as human resources.
Your priorities as well as your current resources will dictate the kind of investment you need to make. But always remember two things discussed at the top: your products and customers are first.