You don’t want to spend your life obeying the orders of your boss 9 to 5. Most people feel it difficult to withstand a typical contemporary corporate workplace’s monotony and end up being an entrepreneur. The concept of startups has become overwhelmingly fantasized in today’s world. Many fail to understand the entrepreneurial diligence required to establish the right business, specifically in the case of a startup.
According to recent statistics, approximately 50% of startups fail within five years and 25% within just a year of operation. One of the common reasons behind this massive failure is the lack of a laser-focused strategic plan and the necessary context to bolster the startup’s idea. Most people are unable to transform their mental approach from being managerial to a more proactive entrepreneurial orientation.
It is almost impossible to achieve sustainability and scale in a business startup with a conservative managerial approach. Perhaps, a traditional managerial approach is like playing checkers, where each piece moves in the same pattern. In contrast, an entrepreneurial approach is like playing chess. The player is more focused on following the patterns while making profitable use of every piece in chess to win the game.
Similar is the case with business. Various external and internal factors play a crucial role in determining its success. They need to be managed in a tailor-made way to generate the best results. However, leading a startup with such an entrepreneurial acumen might sound strenuous. Many people often fail to manage a sustainable business venture due to the lack of the required skills. All it takes is a well-thought-out methodical line of action. You must stick to the basics and follow the story that has motivated you to initiate your startup. To guide your further, this article lists six excellent tips that can help you lead a great business startup.
1. Hone your Entrepreneurial Skills
Some of you might have a good idea about the importance of proper entrepreneurial skills for managing startups. It also probable that a few of you might have a natural ability to understand the nitty-gritty of business without formal training. However, the rapidly revamping business environment and increasing competition demand formal training to become effective entrepreneurs.
The rapidly changing business dynamics of the 21st-century demand entrepreneurs with strong interpersonal, leadership, learning, and adaptable skills to remain intact in the market. Hence, being new to the field, you should hone your entrepreneurial skills through proper academic training. What’s stopping you from doing so? Is it the strictness of traditional brick and mortar institutions or the requirement of complex tests? Once you explore, you will realize there are innumerable options that can benefit you. You can either enroll in an online MBA no GMAT requirement or take training sessions from business gurus. Whatever the means are, you should always be open to learn and adopt new skills.
- Learn To Make Lemonade
When life gives you lemons, make lemonade. You might already have heard this phrase. It optimally applies to a startup too. The road to mature your startup will pose challenges at every step. Most of the time, things will happen that you neither predict nor are prepared to handle. It is where your entrepreneurial skills come into play to save your startup. Remember, all successful people were once a failure. Most business ventures often fail, as entrepreneurs lack the ability to make strategic decisions during a crisis.
The business experts often recommend learning from your mistakes and turning your hard times into something beneficial. You should look toward the bright side and devise a function that converts that unwarranted constituent into something fruitful. Just remember that your favorite snacks, Doritos, were invented as a solution to deal with unused tortillas.
3. Value the Bird-in-Hand
A bird in the hand is worth two in the bush—similarly, the resources in hand worth more than the ones out of reach. Instead of expanding the current resources, you must first utilize the ones you have at your disposal to the fullest. Five roommates, a dormitory, and a very niche audience are all needed to initiate Facebook. Once a college startup is now making a whopping $720 billion. So stop overthinking about the lack of resources, rather stay persistent on entrepreneurial grounds to churn maximum output.
4. Don’t Go Beyond the Affordable Loss
Having a background philosophy to drive your startup is a necessary component. However, you should not get overly consumed with that ideology, as it would only fuel you to bet all your resources blindly. It would increase your appetite for risk beyond a controllable limit. The history includes countless excellent examples to teach us how startups failed miserably as they went way beyond the affordable loss.
Faraday Future, the probable Tesla-killer, went bankrupt because they spent resources – mainly financial muscle – relentlessly. Where companies as strong as Faraday Future couldn’t withstand realizing more than their affordable loss, your startup would certainly fail under a similar mistake.
5. Be the Pilot in the Plane
Teamwork is important, and trust in your employees is pivotal. Still, it is best to keep the reigns in your hand. The key to successful startups is in being the primary controller of it. You have to be the pilot on the plane. Others will lack the motivation and dedication that you contain. It is better to look after all the functional aspects and managerial issues yourself. It might sound a bit too much when you already have dozens of other responsibilities. Remember that your employees can never match your efforts and motivation to deal with challenges, as it is ‘Your’ business. Once things get going smoothly, you might delegate responsibilities.
6. Create the Patchwork Quilt
Instead of investing extensive efforts to overturn a NO into a YES, try to add people who share the same vision. Also, it is best to create a patchwork where different designs come together with a common purpose and create a holistic sense. Try to look for people who support your idea and find common grounds with your startup. Make a network of such individuals and co-create the business philosophy behind your startup.
Jack Ma had ideas that were quite implausible in the Chinese business environment when he initiated Alibaba. Consequently, there were few people to support him. However, he stayed firm with his ideology and gradually found people with a similar entrepreneurial mindset. Despite spending the first three years without making profits, Jack Ma has finally built a company with over $72 billion in annual revenue.
It is undoubtedly everyone’s right to become wealthy, successful, and have a fulfilled life. However, the current world demands hard work and dedication to earn your dreams by working on practical grounds. Business startups bring radical opportunities to cultivate your dreams, visions, and goals. What you have read above can certainly be the key elements to unravel your business startup’s true potential. Just follow these tips and pave your way to success.