In the 21st century, millennials have been more and more inspired to build their own startups. Entrepreneurship has become the cool and trendy topic of this age.
The problem, though, is that most startups fail within three years. So, why are so many startups failing? The truth is that most startups overlook a lot of things as they expand their business, which usually leads to their demise.
Here are eight things that most startups overlook when trying to expand and grow their business.
1. The Right Employees
There is nothing more important than the people on your team. Business is a team sport, after all. If you don’t have the right players on your team, you won’t be making it to the playoffs.
“One of the things I overlooked was how important it was to hire the right people. Several times, we kept people around too long that weren’t contributing to the business.
We were much happier when we got the right people on the bus and the wrong people off. It helps set a precedent for a good company culture.” – Marcin Kleczynski, founder and CEO of Malwarebytes.
2. Market Research
Remember your parents telling you to do your homework? It was and still is good advice, especially in the business world.
If you dive in without doing your due diligence, you can lose a lot of money or maybe even all of it.
“If your business is not competitive in your home country, problems will be magnified in all other countries. Start by visiting local retailers and watch consumers. We continually improve by honing in on the local shopping preferences.” – Philip Rooke, CEO of Spreadshirt.
3. Company Culture
Employees are attracted to companies that have a culture. It is a way for them to identify whether they will be a good fit for the company.
The quality of culture will positively or negatively affect employee retention.
“The main thing that we didn’t want to overlook is our company culture as we grew. Our strategy to not overlook this very important matter was to implement an organizational structure, we call Entrepreneur-ocracy.
It is a corporate structure with no managers and allow employees to make critical decisions because they are empowered to do so.
Instead of managers, we have weekly team meetings that are overseen by elected moderators. By allowing managerial duties to be divided among the team members, we are on pace to save $1+ million dollars in operational expenses this year.” -Jessica Mah, CEO of inDinero.
4. Hiring The Services of Appropriate Professionals
Sometimes, startup employees will try to save money by giving more of their time to do other things. However, there are certain matters that should be left to the professionals.
“The most important thing that we overlooked was to get people that were competent in doing what they do best, specifically a CPA. I wish we hadn’t tried to do it ourselves. All we ended up doing was wasting time.
It would have taken 20 minutes for a CPA to do it. Yet, it took us 4 hours and we still weren’t doing it correctly. My advice is to reach out and ask other entrepreneurs for recommendations”, says Kim Kaupe (Co-Founder of Zinepak).
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