5 Tips to Survive as a Vulnerable Early Stage Startup
Starting a company (startup) is a lot more work than it looks. You pour your years of motivation and inside struggle into a brand after taking millions of decisions. Some turn out beneficial but some of them are a disaster too. However, after struggling with all criticism and financial insecurity, you finally open a company. Well! Let us tell you that was the easy part.
It takes a lot to keep it alive. A company can fail to survive because of so many reasons such as internal destructions, lack of product knowledge, lack of leadership but the major one is lack of funding.
We understand It is difficult to swim in the entrepreneurial ocean, however, good planning and management can prepare for most of the hurdles you are going to face on the way. Here are a few points an entrepreneur should keep in mind.
Employee Retention in Your Startup:
This is the only section where you can do cost-cutting. A core team is the backbone of any startup. They are the pieces you need to complete your puzzle and win. Choose your people wisely. You can’t manage each and every department by yourself. Add people around you who have an understanding of your product, ideology and you. You have transformed your idea into a company but without a good team, you would never be able to convert it into a profitable business.
A startup is as fragile and fickle as a baby, only right people on board can help you raise it well. In the beginning, you won’t be able to hire employees who are expert in their field but you can hire a person with knowledge, willing learn more with an attitude to make it big in life and eagerly waiting for a chance. Try to find people with knowledge if not experienced. Make sure to maintain a healthy work environment. A quick and dedicated learner under your guidance can outrun an experienced employee in the long run.
One of the most effective ways of cost-cutting is letting go of 9-6 office culture. Hiring a freelancer can not only save you from electricity, meal, transport, internet bills but also will work extra within the comfort of their home.
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Customer Retention Strategies:
Your poor customer service skills can cost you a lot sometimes a fortune. Whether your company is service-based or product-based, your consumers are your assets. Handing consumers is the most happening department. Your customer, even the difficult or never coming back ones, are your potential assets. Getting a new customer is easier said than done but don’t underestimate the potential of old ones.
They are the seeds you rowed last time if watered properly they will fruitful for you even more than you expect. Treat each and every customer of yours as your investor and train your team to do so as well. This will change the whole mindset of dealing with them. Try to encourage more and more people to give you feedback on services too, and keep a close eye on feedback. You might not notice but poor customer service might be hindering the growth of your business. Acquiring a new customer can cost 3x more than retaining an old customer.
Always Have A Backup Ready for Your Startup:
The first step of your entrepreneurial journey is to make a well-elaborated business plan. A business plan is the written layout of the present and the future of the company you have in mind. Your business plan is read by many important people such as money lenders, angel investors, big investment contributors, and CEOs etc. This should reflect each and every good thing about you, your product and your core team.
Your business plan is the reason people will give you the opportunity to speak about your product. Start by explaining about your product, why you think it should be launched in the market, what are the industry needs right now, about market trends you have researched, about your competitors, elaborate your financial plan, marketing strategy and back that with sufficient data. Here you can tell what you are expecting out of it. You can also show portray a well-managed picture by showing your organization structure and your strong team.
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The world of startup sound interesting but only a true entrepreneur understands how difficult the journey is. One needs to have a backup plan ready, a good pool of early and effective employees and of course a good amount of cash flow to make things work. When 2 out of 3 startup fail miserably, it becomes very important for early-stage startups to have an effective plan in action.