In a fast-paced world, if you’ve got a good business idea, you need to move fast. And what better way to do it than launching a startup? After all, major tech giants like Apple, Google, and Amazon all started in a garage. But how can you ensure that your venture will make the leap towards success and not suffer the fate of countless startups that fail every year? For starters, you need to identify the things you should never compromise on – and these are the three most crucial.
Never skip the planning phase; you need to be able to pinpoint early on what your roadmap to success will look like. 75% of venture-backed startups fail and the number one reason for that is that they discover – after launching – that there is no actual market need for their product. Before deciding to launch, you need to make sure that you have outlined your trajectory beyond the initial customer experience – if you just focus on selling a product, that will be over soon. Instead, focus on what further services your startup can provide after the initial purchase and make sure that your stakeholders are on board.
You will find more statistics at Statista
Also, have the plan ready for the long run: according to a survey, 53% of tech and healthcare startups are aiming for an acquisition and 18% hope to stay private – having a plan early on will help you choose the best next step when at a crossroads. A whopping 13% state that they “do not know” what the long-term plan is – do not be one of those.
One practical thing you should definitely never compromise on is cyber security. Most startups rely heavily on software and technology and you need to be in a position to guarantee that everything will be working smoothly and not be disrupted by external threats. You might be thinking that hackers have bigger fish to fry but you could not be more wrong; as the recent cyber attacks (think WannaCry and Petya) against all types of companies and individuals demonstrate, everybody is a target.
It’s worth remembering that ransomware attacks happen in various ways, including through phishing, the opening of malicious email attachments, and the installation of infected programs. The attacker then locks and encrypts the victim’s data, demanding a ransom to unlock it – a figure that can be as low as $500, which means that financially low-level targets like start-ups are definitely game. Besides, hackers can also use your server as a proxy to launch further attacks – in which case, it will be precisely the lack of cyber security that will draw them in.
When you are finally beginning to see your brilliant idea turned into reality, it is easy to focus on the exciting – yet hard – work that needs to be done, and neglect the boring logistics. 46% of start-ups cite incompetence as their reason for failing, including no knowledge of financing or setting prices and minimal experience in how to keep records.
While you may be the best programmer around or know how to come up with novel ideas, you still need to hire experts to make sure that the slightly less fun stuff is getting taken care of, too. Legal and tax issues, as well as record keeping, will prove pivotal in the long run, so never compromise on these – hire the best professionals available and make sure that you get regular updates on the state of your startup.
There is one thing that you absolutely need to have in order for your startup to succeed: a stellar concept. But do not let a great idea go to waste by not investing time and resources on the practical aspects of your company.