09 Jan Five Major Rules for Startups to Succeed
For people new to the business world, launching a startup is like treading on water. There’s never a perfect guarantee of success. One day the sales may go higher than your expectations, but you cannot be sure when that is going to last. While it’s true that there are countless startups that never got to where they were supposed to be, there are also countless ones that grew into multi-billion dollar companies. Do the guys behind these huge companies have a “success” book they read and follow? Or are they just plain lucky?
While luck may be true to some people, it is impossible to be the reason behind huge successes. Success comes with the right combination of determination, sharp-mindedness, competitiveness, aggressiveness, and many other qualities. Luck just cannot sustain a business to succeed. If you want your business to grow, you strive against and through the difficult times. Nothing is easy when you want to be successful, but it is also very achievable.
There is really no single formula towards success. Every business has its own share of problems. However, there are practices and rules that successful business owners do to make a difference and pretty much overcome the difficulties their businesses face. Let’s find out five major rules for startups to succeed.
#1 Identify the need that you will fill in
The guys behind LIFX came up with the business idea that reinvented the light bulb. With the trend high on the ‘internet of things’, these long-lasting (think 22 years!) LIFX lightbulbs are the first WiFi enabled, multicolored LED lights that can be controlled by smart devices. The company started by raising more than a million dollars on Kickstarter in less than five days. From its office in Melbourne, LIFX now have a 12 million USD fund and has now become a global brand with offices in the Silicon Valley and the UK.
It is always important that what you are bringing into the market is an already known need of the people. That way, marketing is easier and less costly. You will not have to spend so much time and money on explaining to people why they need your product.
#2 Love what you sell
Do not do a business that you do not love or that you are not passionate about. If you do so, it is doomed at the beginning. When you have love or passion for what you are doing, you believe in it as well. You would be striving hard to make it work when things start to go rough. And businesses meet countless hurdles along the way, before catching the perfect wave to success.
#3 Study your profit margins
Profits sustain your business. It is important that your profit margins are big enough to cover all your expenses, including the payroll, business rent, or advertisements. When it is not enough, the business may survive but there won’t be enough money to expand it.
#4 Steal from your competition
According to Tom Hogan and Carol Broadbent, founders and principals of Crowded Ocean, most startups have the problem of being myopic or nearsighted. They tend to focus only on themselves, their products and technology, failing to see the much broader road ahead. You can study the strategies of your competition, especially those that have long been in the business. Know what makes their business succeed. What edge do they have that other in your industry and you do not have? Once you learn especially about their strategy on customer acquisition, study it and find out how you can make it work for you too. It’s not only in their failure you can learn from. Also know what makes them tick.
#5 No jerks allowed
It is no longer new and more and more companies are adapting to this “no jerks” allowed policy. It is not being rude, but it is more on being firm on having no tolerance to bad apples who can influence others too. In many companies, people with this attitude is overflowing. They can be found within and outside the workspace. Or worse, in the person of your boss. Begin a culture in your office not to tolerate such attitude from your employees to the clients. It is okay to fire an employee who would refuse to follow the policy or move past a client who is being rude. You are in no way obligated to put up with their rudeness.
These rules are only rules and will have no positive effect on your business if you yourself do not push to apply these rules into the system of your business. Ultimately, the success of your business begins with your willingness and determination to do anything to make it a success.
Gemma Reeves is a seasoned writer who enjoys creating helpful articles and interesting stories. She has worked with several clients across different industries such as advertising, online marketing, technology, healthcare, family matters, and more. She is also an aspiring entrepreneur who is engaged in assisting other aspiring entrepreneurs in finding the best office space for their business.
Check out her company here: FindMyWorkspace