As a successful British startup we’re aware of all the statistics facing new businesses but we’d like to concentrate on the positive!
Get the habits...
Figures from Forbes published this year make intimidating reading as it said a staggering 90% of new companies fail. Just 10% make it and the magazine points out several reasons why this might be the case, and offers reasons why other businesses go out of operation. We’ve condensed a few of our favourite tricks right here so you can see some of the successful habits of the ten per cent…
1. Find a market
It sounds almost too simple to be true, but one of the main reasons companies succeed is because they have something that sells well. It’s absolutely crucial that there’s a market for your products or services, as this is where the income lies. Quite often it’s easy to see how useful something is after it’s been widely sold and marketed - take mobile phones for instance! - and we might struggle to think how we got by without them.
It’s not so easy to see gaps in the market before you’ve launched a product though. This actually takes real hard work and might involve market research, focus groups and trial runs of items to establish any refinements or alterations that might need to take place.
2. Keep the cash coming…
If there was a simple, straightforward way for money to constantly flow into a business then we definitely think it would have been discovered by now, and we’d like to think we’d be at the front of the queue! Forbes hints at how access to cash can depend on growth, adding that fast expansion may result in greater investment, leading to even more growth and funding. As well as encouraging income this way, it’s also useful to preserve your budget where you can too. Examples include going digital to save on paperwork costs and renting office furniture, as you don’t need to use up your capital to buy it.
We have all kinds of items in stock that work well in business locations, from our varied table hire range, to our desking, pedestals, cupboards and seating too. If you choose long term hire then you can include small monthly payments for our furniture in your business operating costs, which attracts tax savings.
3. Find your dream team
We might all be forgiven for thinking that if we have a great product and a healthy cash flow our business stands a better-than-average chance of success. But figures highlighted by Forbes suggest that the third most popular reason a company fails is down to hiring the wrong team. So how can you find the right team? This is a hard question to answer, but obviously there has to be the right experience and skill mix for the role.
Forbes also explained how people will have their individual tasks but must also think outside of these to see projects as a whole and their wider impact on the overall aims. This can often be a case of learning for all concerned and you might find it helps to rely on ongoing training and mentoring to get the best from your staff.