It is really shocking that in India more than 90% of startups fail in the first 5 years itself. Out of these 90% companies, 60% companies are not even able to sustain their business for 3 years. Most of these startups have a team less than 10 in number and at times its less than even 5 members. After doing a lot of research on these points, that why this is happening to our startups, we are able to find accurate reasons and solution to overcome them.
The basic three things as an entrepreneur we need to do is:
1. Have Clear Vision (Work on few thing only)
As a start-up company, most of the entrepreneurs start their business with many ambitions and wants to achieve multiple goals at the same time. Due to this ambition and lack of clarity, they are always confused. They are not able to give justice to company growth and at the same time give clarity to their employees about where the organization should go. This is one of the biggest reason behind the failure of startups.
When you are working on more than 5 goals, it will be always hard to streamline and remain focused. In the beginning, when you are 2-3 employee company, things will seem to be easy for you but as you grow and add more employees, it will become hard for you to align them. Due to this miscommunication, most of startups faces internal disputes as the team members are not clear what they are supposed to do and why, clients are not getting proper support.
The first step to overcome this issues is set The Top 5 Priorities for your organization, and share with the entire team and make it part of your induction programme so each time when any new employee is coming, he is also aware of it. These priorities should be drafted in a simple and clear way without using heavy jargon.
2. Review & Repeat
The second biggest challenge is, keeping track of historical data and analysis. Most of the startups are not able to match the dynamics of changing market and due to lack of innovation in technology along with their approach towards marketing. And thus, they are failing to survive.
Also as an entrepreneur, you need to have some parameters using which you can keep track on the performance of each employee and yourself. This will always help you to grow your business in a proper way. You will be able to figure out issues easily and address them in an effective way.
We always suggest that when you start your firm try to have 5-year data of your industry which will help you to define your approach and strategies. Also, keep track on each activity which you are doing, record them, analyze them and discuss them on regular basis with your team. By doing this review and repeating this process on regular bases you can assure success for your business.
3. Stay Focused
Once you will have a clear vision with a hand full of activities which you need to go along with historical data, you just need to stay focused on them. The best way to stay focus is, have daily meetings with team and board of directors so you can discuss daily activities which you are going to do and how they are aligned with your company vision. Discuss historical data to support your activities and what you and your team require to complete the task. In this meeting, you can discuss the achievements so that everyone is clear how much they have completed and what is pending.
“If you want to teach people a new way of thinking, don’t bother trying to teach them.
Instead, give them a tool, the use of which will lead to new ways of thinking.” –
By doing these 3 simple things you can assure success for your business and make it billion dollar company with rapid growth. To learn this topic in more detail you can subscribe to our YouTube Channel.