Startup Businesses, How to Survive In Spite of Grim Odds

Is your startup business doomed to fail? Statistics say yes. According to Forbes and Bloomberg, eight out of 10 new businesses go under within 18 months or less. The silver lining, perhaps, is that entrepreneurs make the same -- avoidable -- mistakes. The odds may be stacked against you, but there are some ways you can fight back and come out on top.

 

Don't Go It Alone
"Only having one founder is the most common reason...startups die. Running a company alone is much harder and more stressful than it seems, and it's especially unusual for a startup to succeed with just one person behind it," Business Insider explains. It is important to combine efforts with a strong business partner and/or upper management team. Also consider hiring an accountant to help with important financial decisions for the first -- and most crucial -- years.

Avoid Unnecessary Expenses Like the Plague
When it comes down to it, businesses are all about profits -- or lack thereof. Do yourself a huge favor, and only pay for things that you truly need to. Well-chosen PLM consulting firms or product lifecycle management systems can help you assess the value of particular products, goods, and services -- and how long that value is likely to last. With a PLM consulting firm, start up businesses can avoid paying for products that will no longer sell and move onto more profitable ventures.

Keep The Conversation Going
It is well-known that customers are the most critical part of any business. Even so, many business owners mistakenly -- and sometimes even unconsciously -- neglect customers. "This is the worst move an entrepreneur can make because complete understanding of your customer is imperative to your success," Forbes begins. "Your customer holds the key to your success deep in their pain, behavior, dreams, values and the jobs they are trying to accomplish." Encourage ongoing conversation with customers and constant customer feedback to stay on the right track.

Beat the odds. Secure success by finding a valued partner, carefully tracking products and services, and encouraging open and frank discussions with customers.