It seems like everyone is keen on joining the startup bandwagon, all thanks to the Start Up India Stand Up India initiative by the Government of India. The trend doesn’t seem to fade either in the distant future.
Though it’s a good thing to see young and energetic people in the startup bubble, launching a startup is no easy feat. Unfortunately, more than 50% of startups end up failing within the first few years of their inception. Growing a startup into a large-scale organization is a frantic task.
This certainly is a huge problem, since most of the slip-ups that lead to the demise of a startup are direct outcomes of the choices made during the early stages of launching a startup. Avoiding the below-mentioned sins will go long way to fostering your startup into a full-grown organization over time.
- Wrong Tool
Though there are various factors that can drive a startup to disaster, the most dreadful mistake that a startup can commit is venturing out there without arming itself with the right set of tools and systems to help grow. It can be anything from an enterprise management system for streamlining critical business operations to a cloud based HR software for workforce management.
Yes, there’s simply no alternatives to it. Thus, a business especially startup ought to invest resources and time in its initial stages to avoid regretting later. Today, there are apps for almost every need and business is no exception. What else could be better than having all your employees on the same page thus, enabling them to collaborate and share data in real-time on the go right from their handheld devices. Business process automation on the other hand can make it a child’s play to manage day-to-day activities such as tracking employees’ time and attendance with an automated HRMS software or managing accounting processes with an intelligent enterprise management system.
Equipping your startup with the right set of tools from the beginning will help your business foster flawlessly.
- A Bad Staff
The people you recruit play a pivotal role in your startup’s failure or success. Yes, employees are the biggest asset for any company responsible for driving a business ahead using the tech/tools you provide them.
Employees of startup ought to be passionate and should perform well with the assigned roles so that you can focus on your organization’s long-term plans. Unfortunately, finding such eclectic employees in today’s era is no easy feat. On the other hand, a startup can never afford to make bad hires only to ruin its time, money and resources.
Irrespective of whether your startup relies on referrals or job postings for attracting potential employees, it is imperative for the entrepreneur to make a lasting and positive impression on all his/her future recruits. Make sure to offer an attractive pay along with a nice benefits package.
- Bad Location
One of the most overlooked yet critical issue is picking the right location for your startup. Many of the successful startups out there had once started from a small garage or basement before making it big. If you plan to reach the pinnacle and make your company sustainable, you will need to increase your workforce. Thus, you’ll have to select the right location for your business.
Avoid office spaces and locations that could hamper your company’s bottom line. For example, an obscure office location can make it problematic for your clients and employees to reach you.
A startup though can’t shoot off to mars during its initial stages, but it can certainly move its critical business operations to cloud to save time, money and resources. Plan and stride carefully in order to avoid these slip-ups and see your startup grow into a sustainable organization. Remember, persistence is the key.