It takes a great deal of skill to get a startup business off the ground and running smoothly. It takes even more skill to keep it there over the first few years of operation, which are shaky even for big companies. Launching a new venture is a really exciting thing and it is, understandably, fraught with all kinds of different emotions.
What you can’t lose sight of is the fact that you are running a business and, no matter what industry you’re working in, the market will be tough to master. Those all-important first years depend on agility, flexibility, and smart decision making. You need to keep capital as free and loose as possible, while also maintain a sense of stability and permanence.
In other words, it is a tough job. Luckily, the rewards are great, so read this handy guide to keeping your first startup on the track to success.
The Capital
The first step is securing enough capital to get the venture off the ground. This can be one of the toughest parts of the journey, but many investors and entrepreneurs are initially supported by family members and personal sponsors. Find yourself a reliable team of chartered accountants, because you’ll find solid advice and information to fall back on while you try and free up capital and source reputable lines of credit.
The Leader(s)
At the outset, leadership really is everything. When you’re breaking new ground, you need somebody in charge who commands authority and inspires confidence. If that person isn’t you, it is important to be honest and find an individual who fits the bill. Not everybody is born to stand at the head of a company, after all; just because you own it, doesn’t mean you have to be its face.
The Team
In the early months, the aim should be to keep the workforce relatively small, particularly if your profit margins are narrow. You’ll always have the chance to employ more people and create a diverse team later on. To begin with though, your core team should be made up of people who are fully invested in the business and willing to go the extra mile to see it succeed.
The Plan
It is really helpful to be able to explain to your team exactly what the key goals are. And, the easiest, simplest way to do this is to know where you want to be in a year, two years, five years, and so on. Don’t be afraid to get specific about it, because having clear, well thought out goals doesn’t mean you can’t change them if necessary. However, it does set the startup moving on a focused, committed course.
The Disaster Response
One thing that you shouldn’t spend time worrying about is how to avoid a crisis. Focus your efforts on crisis mitigation, because it isn’t a question of when something will go wrong. The business world is a harsh place and there are dangers all around. The first few years of life for a startup are the most perilous, but if you know how to respond quickly and limit the damage caused by bad decisions, you’ll find it easier to survive and thrive.
The Evolution
Last but not least, there is the pace at which you move. It is perfectly understandable to want to grow and expand quickly, but the reality is that success takes time. You have to be patient and meticulous in your movements; don’t make investments or pour money and time into diversifications unless you know for sure that you can handle them. The companies that go the distance are those that make logical, sensible choices from the head and not the heart.
