6 Rules for Your Startup Company
Last year an average of 514,000 new American startup firms launched every month. However, statistics show three out of four of these companies will fail. Following these rules will give yours the best chance of beating the odds.
Think Passion, Not Profit
It takes the average startup company between three and five years to become profitable. During those early few years, you can count on working 60- to 80-hour weeks. You can also forget about taking vacation time while you're working to establish yourself. If you're not passionate about what you're doing you're bound to burn yourself out. While finances are important for any business, you'll need more than dollars and cents to keep you motivated.
Build Something That Will Last
It takes about 18 months for most startup companies to hit their stride, and as outlined above, even longer to become profitable. So it's important your concept is still relevant after that time has elapsed. You may think that capitalizing on a current trend will excite people, but on this timescale they may not know about your brilliant idea until it’s fallen out of favor. It's crucial to think about long-term solutions to make sure your startup enjoys longevity.
Don't Undervalue Your Products or Services
While profits shouldn't motivate you, they're obviously important for your firm's success. Far too many startup firms charge too little for their goods and services to try to entice customers. Be realistic about what your product's worth, and don't undersell yourself to get ahead. It'll only undermine your credibility and bottom line in the long run.
Opt for Open Plan Instead of Closed Offices
In its International Workplace Studies Program report, "Offices That Work" of Cornell University found open plan offices encouraged more frequent communication, better team building, and quicker problem solving and conflict resolution than closed office environments. All these are important benefits for startups to consider, as the team must work together to achieve success.