7 Essentials Steps to Ensure Startup Success

Creating a successful startup requires taking a great idea and turning it into a profitable business. Of course, ensuring your startup is successful is easier said than done. Even the most successful companies in the world were once budding startups who had their initial share of failure and success.

Unfortunately, statistics show that the majority of new businesses and enterprises fail within the first few years. Some reports indicate that as many as 20% of small businesses won’t make it through their first year. This figure rises to 50% within five years. While these figures aren’t meant to discourage anyone, they emphasise the need for careful planning to give your startup the best chances of success.

So, what can you do to make sure that your new business venture doesn’t become one of these statistics? How can you ensure success for your young business?

Reasons Why Many Startups Fail to Find Success

The reasons why many new business owners don’t hit the dizzy heights of success that they hoped for are varied. Interestingly, some statistics indicate that a business's success or failure isn’t down to economic conditions.

So, why do many businesses not make it past the first few years? What can you learn from the mistakes they made?

Harvard Business School reports that lack of proper planning is behind many startup failures. A common reason is that many enthusiastic entrepreneurs think that they can predict or affect the future with their customers. This trait can cause them to realise too late that their business plan isn’t working. 

Another common reason why new companies don’t make it through the initial years is that they don’t learn from failures. Learning from mistakes is the reason many companies why Apple, Netflix, Nintendo, and gaming company Rovio are now household names. The made critical mistakes in the beginning but quickly learned from them and adapted.

7 Essential Steps to Ensure Startup Success

How can you turn your idea into a profitable business?

First, it’s important to remember that building up a business from zero takes patience, dedication, and a few sleepless nights. What are the best steps to ensure success?

1. Develop your unique idea

One of the key ways to develop a successful company is to focus on what makes your product unique. There are probably already similar products on the market, and many of them already have a loyal following. So, it’s essential to find a unique selling proposition (USP). Think about these questions when developing your product:

• Is there a niche in the market that no one is addressing?
• How can I make my product better than my competitors?
• What can I offer that no one else in the industry is offering?
• What are consumers looking for that they can’t presently get?

2. Know your market

You may have a fantastic idea and a great product, but if there is no demand for it, your efforts will be in vain. It is also essential to do market analysis on how much consumers are willing to pay for the product.

Getting to know your market is also a great way to stay customer-focused. This clear vision can help you develop products and services that are in demand.

3. Build up a good network

Even though you may be an entrepreneur who is going it alone, you still need a good support network. In this regard, it’s essential to have some balance. Having a bunch of “yes” people around isn’t going to help you be successful. However, being around critical people also is a bad idea.

Make sure that your team includes partners, potential employees, or mentors who are prepared to give constructive advice and even criticism.

4. Have a solid business plan for success

Your business plan is not just to get enough capital to get you started. Your business plan can help keep you focused, especially when you encounter difficulties. The plan should include market research, your business values, and short-term and long-term goals.

5. Get everything down in writing

Don’t make the mistake of doing “handshake” agreements or having verbal assurances. Every agreement, even between trusted friends, should be backed up by a signed contract. This legal protection can help you avoid potential unforeseen problems that could impact your business.

6. Learn how to adapt

We’ve all heard about large companies that ultimately failed because they failed to adapt to changing times. An example is the difference between video rental chain Blockbuster and Netflix. Both are similar types of companies. However, the one that failed to adapt was the one that went bust.

7. Stay dedicated

Dedication to hard work is often the difference between failure and success. In the early stages, a startup requires putting in extra hours and fitting your life around work. In time, you will reap the rewards of your success, but until then, determination and dedication will help boost your success.