Starting up a business can be a little easier if you have the capital to back it. The tricky part is making your startup business successful and sustainable after launch. To do that, we all know it will require more than just money. Numerous factors affect a business and its likelihood of success.
A significant number of entrepreneurs have undoubtedly experienced failure. According to statistics, nine out of ten startup companies usually fail. As some people say, business is not for the faint-hearted.
One reason for a failed startup is the market. If you choose to launch a business in a market that is too small you have limited room for growth or sustainability. A sign of a market problem is evident if there is no compelling event or cause for a buyer to purchase your product. It can also be a case of wrong timing or poor execution. For example, Uber was far from the first ride-share companies established.
The reason that Uber succeeded and its predecessors failed is the next reason that other businesses fail; a flaw in the business model. The most common flaw in the models of entrepreneurs is that they become too optimistic with acquiring customers to the point that they do not have any backup plan in case there are no customers.
For some entrepreneurs, they fail to estimate the cost to sustain their business in the event of a shortage in customers. Because of this, most of them are forced to close their startup business since the lack of capitol is too large to sustain. As they say, when it rains it pours. You need to have plans B, C, and D ready before you launch A because businesses rarely launch as expected.
Build on your network. A good network foundation can help your business, especially when you are just starting. For me, even 10 years into SEO, referrals is still the #1 source or leads for me and my team at SEO National.
Lastly, learn to adjust. Though you have a goal, you should learn how to react to certain situations and adapt. To be nimble and to be able to pivot quickly, you need to be educated. Make use of all your resources to improve your product and your business. Read books. Analyze your market. Educate yourself on all levels.