Startup Success – 5 Key Differences Between those That Fail and Those That Succeed

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Startup Success – 5 Key Differences Between those That Fail and Those That Succeed

Watching a business close its physical or virtual doors is never easy. It shows that an entrepreneur or new business owner tried everything they could, but were unable to succeed on their journey to self-employment. 

In saying that, you need only talk to any successful startup owner, and they will tell you that there are several differences between a failure and a success. It’s not so much the tenacity of the business owner, but how they establish themselves from the beginning. Startup Success – 5 Key Differences Between those That Fail and Those That Succeed

1. The Support of Others

It can take the support of many to help a startup succeed. Everyone from friends and families to customers, and even small business IT support and other complementary companies can make or break a new business. 

They say it takes a village to raise a child, but it also takes a village (or city) to help a startup succeed. For anyone looking to open their own business, make sure you have the financial and emotional backing of as many people as possible to hit the ground running. 

2. Goals and Plans

A photographer may start a new photography business because they like to take photos and are pretty good at it. An owner or a lawn moving company might start his or her own lawn care service because they have a passion for making properties look outstanding. While you might like your hobbies enough to make them a job, you can’t let that passion be the only thing that guides you in business. It’s crucial to have a plan and see the value in goal setting.   

Having a goal and planning for a business can be the difference between success and failure. Instead of floating blindly through each day, you can have clear financial targets and aspirations for growth. These can help you survive and thrive. 

3. Meeting the Market

You might think your product or service is the best thing since sliced bread, but does it meet the market? Over 40 percent of businesses that fail do so because they weren’t able to satisfy a need for a product or service. An example of this would be selling snow shovelling equipment and machinery in Texas. If you can’t meet the market, you may end up having to close the doors. 

4. Premature Expansion  

Watching your business survive and thrive can be quite exciting. You may not have anticipated that profits would be this high, or that there would be such a demand for your offerings so soon. However, one way to put that “closed” sign on your door permanently is by expanding prematurely. 

The best time to expand is when you have regular customers, your industry is growing, and your customers are demanding that you do. 

5. Calculated Business Decisions

One of the more prominent differences between a successful and failed startup business is the business decisions that are being made. Passion can take your business to new heights, but a business head can skyrocket it even further. 

Sound business decisions can include making sure your company or business has proper insurance, is paying the right taxes, and has expert advice and a helping hand from accountants and financial advisors. Smart money management can make a world of difference. 

There will not always be a way to prevent the closure of a startup business, but there are certainly business management methods that can make a difference. From having defined goals to seeking the support of other people and enterprises, you may be surprised at the vast differences between a startup that fails and one that succeeds.

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