OK, so you’ve got a new business idea and are running with it. Good for you. Focus on your goal, and you can achieve whatever you want. But it’s certainly worth heeding some advice to stay afloat early on as there are so many new businesses that do the basics wrong.
What happens to those startups? They fail more often than not. Carry on reading for tips to help you land on your feet but first, let’s bring you a couple of examples of very promising businesses that have greatly and unexpectedly failed just because they did it wrong. Smart people learn from the mistakes of others, hopefully, these below will be a good bit of a lesson to all of us.
Poor Business Ventures
Compaq. Remember them? They were around for a while but their downfall came when they branched out and tried to have too many fingers in too many pies. They wanted to dominate the computer industry but they spread themselves too thin. Too much inventory and an incredible price battle with the rest of the computer industry saw their profits gobbled up. They never recovered. The lesson here? Never get too greedy and focus on what you’re good at.
If you’re looking at starting a business that requires a lot of money, please, please, please, ensure you do all of your research beforehand, get second and third opinions, and be ready to adapt to the changes in your market.
Juicero is another one. Their top-of-the-range juicer took the market by storm initially, it was juicing perfection. They managed to raise $120M of funding but that hype soon stopped. And everyone soon realized that they could squeeze juice and vegetables for nothing. Instead of Juicero accepting this and lowering their prices, they failed to adapt and respond to customer feedback, keeping their juicer at a ridiculously high cost, thus ending up penniless as nobody bought them.
If you want your new business venture to succeed, we move nicely on to…
Startup Success Tips
You’re already well on your way to success if you understand the purpose of your venture. If you know people will care about it, you’re on to a winner. Make sure it’s something you love, too. If your heart isn’t 100% in it, you’re more likely to bail down the line if things get tough. With that comes self-belief. You need to have plenty of that in the tank. If you’re putting 100% in, self-confidence often follows.
Remember, the customer is always right. Make sure you’re serving them and not yourself. Keep that vanity away from your business and keep the customer in mind with every single decision you make. Furthermore, never assume what the customer might want from your business. It pays to do a little bit of research to understand the needs of those you’re targeting.
One area many businesses ignore is the future. Keep learning as you go along and ensure you adapt to change. There are always surprises hiding around the corner, so it’s worth staying in touch with the latest technological trends. Otherwise, you’re at risk of being left behind. Just ask Blockbuster. Who? Exactly.
Negotiate absolutely everything.
Money is what’s going to keep you going or see you go under at the end of the day. If you’re tasked with purchasing things for your business, remember that whatever you are buying will have its own profit margin worked into the price. Negotiate. All they can do is say no, but if you don’t ask you don’t get. Think of the savings you could make down the line if you follow this philosophy.
What’s the most important thing to remember?
Never give up. Did you know most startups that fail do not fail because they ran out of money? They fail because the person steering the ship gave up. If you’ve got a never say die attitude, you’re going to be alright. Well, make sure you also take in the above tips, otherwise just having a never say die attitude won’t be enough.
The most successful entrepreneurs and business owners have learned to show their passion without being blinded by it. If you take on board all of the above, you’re on the right path to your business being a success. Don’t be afraid to ask for help either. If the going gets tough, ask for advice, listen to feedback, adapt, change and keep on moving forward.
