Is your startup heading towards failure? There’s nothing to worry about.
Anything between 60 percent and 90 percent startups flounder and fail during the first three years of their operations, according to various studies around the world. There are various reasons for failure of course…
Unfortunately, the majority of startup entrepreneurs never try to revive their startup after a first failure. Often, because they’re unaware of how to bounce back.
Fortunately, several startups also bounce back after failure by using some simple tips and tweaks. In this article, we will be discussing the topmost tips that could help pump fresh blood in your startup enterprise.
The first thing to do is try and analyze the reasons contributing to ‘failure’. That would definitely provide a lot of insights into where things went wrong. Once you have a list of these reasons, the second step is to take countermeasures such as the tips in this article.
As a startup owner, you can safely try these simple tips to revive the enterprise. You might have to adapt some of these tips to suit your specific needs and circumstances.
Now let’s explore these tips.
Trying to copy the business model and offerings of successful enterprises is one of the main reasons why startups flounder and fail. That’s because it’s fairly difficult to compete with established players that are already flourishing in the market and have a wide acceptance among customers.
As a result, most copycat startups always try to compete by undercutting prices. Such a strategy is destined to doom. Offering products or services at lower prices doesn’t really harm an established enterprise. Instead, it starves a startup of much needed funds, leading to financial losses that eventually makes it impossible to sustain the business.
American management consultant and author, Peter F. Drucker rightly says: “A business has two functions – marketing and innovation.”
Therefore, the best way for a startup to bounce back after failure is by innovating its offerings and marketing them aggressively by highlighting features that are missing from the rival’s product or service.
The second tip is to hire freelance talent. Generally, most startups either have too many or too few employees. That’s quite understandable because every startup entrepreneur wants to provide the best services to clients. However, a long or short payroll doesn’t necessarily mean that you’ve got the right talent to steer the startup to success.
It’s fairly easy to overcome this handicap by hiring freelance talent. In fact, hiring highly qualified and skilled freelancers to handle core areas of a startup can prove beneficial since they would be well aware of the problems that plague the business and the necessary fixes.
With nearly 50 percent of the American workforce now engaged in freelancing, it’s fairly easy to find just the perfect talent to revive the startup and help it bounce back. Freelancers don’t necessarily come cheap. However, their skills and expertise would surely justify the expense.
One of the greatest blunders that startup founders commit: they ignore the significance of an online presence for their enterprise. Quite a few startup entrepreneurs falsely believe that it’s not really important to have a significant online presence in the founding stages. This can prove disastrous.
Microsoft founder and CEO, Bill Gates says: “If your business is not on the Internet, soon your business will be out of business.”
Having a mere online presence through a website for the enterprise, social media pages and LinkedIn profile isn’t really enough nowadays. In fact, scant online presence could be the reason that a startup is failing. And to help it bounce back, it’s best to open a blog as well as a YouTube channel for the enterprise.
A blog with engaging content and YouTube channel helps attract clients and create interest in the startup’s business activities. In fact, content with proper digital marketing techniques can help drive a lot of traffic to the blog and eventually, the startup’s dedicated website. These in turn could develop as leads that can convert as customers.
Starting a blog and YouTube channel isn’t really complicated. Moreover, these resources are known to help floundering businesses to revive. And they could prove vital for a startup to bounce back.
And finally, explore new markets for the startup’s business. Very often, the market where a startup operates is crowded with competitors. Therefore, bagging a slice of the market share can prove quite difficult. A common tendency among startup entrepreneurs is to try and cater to an already over-catered market, which eventually causes the venture to fail.
At the same time, they are very lucrative and under-catered or even un-served markets within the country or abroad. These can prove valuable to the startup by contributing the bulk of customers.
Buyers in such markets might have lower affordability. However, this market can provide a steady stream of clients necessary to help the startup to become self-sustaining and eventually, profitable.
Again, it’s possible to hire freelancers to handle the new market until it becomes fully profitable for the startup.
Shortage of funds to sustain a startup is the main reason for failure. The above tips therefore could help a startup to bounce back after failure by ensuring a steady flow of finances to maintain the venture and make it profitable for entrepreneurs and investors.
Guest Contributor: Mitali Roy is passionate about blogging and writing. She fondly calls it “the art of words”. She is unique and so is her content. Blogging about making money and education is something that she loves doing.
Image courtesy of: ben-hershey @unsplash.