Going into business for yourself is an experience unlike any other. Now that you’ve jumped feet first into a startup, you probably know that it can be wonderful. And that it can also be stressful.
And it’s really easy to fail at. According to recent surveys, 46% of startup failure is attributed to the following specific pitfalls-
- Emotional pricing
- Living beyond the means of your business income
- Lack of knowledge or experience in business/management/etc
- Poor record keeping
With so many ways to fail, it’s important to plan extra carefully for success! That means paying attention to details like those listed below.
6 Sure Signs of Startup Failure
The following are the most common; and easily fixable; symptoms of an imminent startup failure.
You Aren’t Sure How Your Business is Doing
It’s critical that you know how your business is doing at all times. Metrics, revenue, social response, etc…
Your Runway is Coming to a Close Without New Funding
Before you reach the end of your runway you have to secure additional and/or new funding. Without cash flow, your business is doomed.
You’ve Stuck to the Original Plan to the Point of Stagnation
It’s important to have an actionable/easy-to-follow business plan in place. However, it is equally important that you’re prepared to revise the plan as needed.
People Aren’t Really Talking About Your Product/Service/Company
If your customers aren’t communicating with and/or about your company, you aren’t reaching any new people. This leads to stagnation.
Your Plan Doesn’t Outline How to Pivot When Necessary
Things change, competitors emerge, etc… A quality business plan will outline exactly how you can make actionable changes to the plan itself.
Revenue Isn’t Increasing at the Expected Rate
If you aren’t meeting your financial goals, you need to take another look at your approach to the entire startup. After all, making money is the main point of going into business, is it not?
It’s Not Too Late to Turn It Around!
It might be difficult to acknowledge that you’re experiencing the above-mentioned issues. Particularly if you’re solely responsible for your startup. It’s hard to admit failure.
However, acknowledging that what you are currently doing isn’t working will free you up to work on new things that just might work better!