What separates the startups that have longevity from those that crash and burn in the first year? Sometimes, the answer just comes down to luck, but there are certainly things you can do to make it more likely you’ll be in the first group instead of the second.
Hiring the right people is a critical element of startup success. There are many moving parts to this. You need to be able to delegate effectively as well because once you have the right people in place, you’ll be depending on them to carry out the tasks that you don’t have time for or aren’t as skilled at doing. You need to look for people who are self-starters and who share a similar vision to you regarding the success of your startup.
It can be tough to know everything that you need for your new business, particularly for departments in which you don’t have a lot of expertise. At times, you may need to rely on your managers to steer you in the right direction, which is another reason to choose the right people. However, you also need to make sure that you have the right tools. The consequences of not having them can range from a drop in productivity or effectiveness to more serious outcomes, such as safety issues. If your business includes a fleet, it’s important to make sure that you remain in compliance. This includes avoiding hours of service violation, which you can avoid the risk with ELD compliance solutions. Research on your own and talk to your staff to make sure that your employees have whatever tools they need.
Getting your finances in order is crucial for startup survival, and you may be surprised to learn that having a lot of money doesn’t necessarily set you up for success. Of course, depending on what kind of business you’re trying to run, you’ll probably need at least some money, but plenty of businesses falter in the first year even if they’ve been generously funded. The key is being savvy with the cash that you do have. You should know where your money is going and what’s coming in, and you should have access to cash flow in case things get tight. Especially in the early days, you could run into some problems if you don’t have a plan for what you’ll do if your invoices go unpaid for a while.
Finally getting your startup off the ground, especially if you have been planning it for years, can be thrilling. There can be a temptation to go full bore, expanding with every new success, but you’ll be much better off if you operate conservatively in those early months and years. There will be plenty of time to boost advertising and expand later when you have a stronger foundation under you along with a better sense of your customers and how you might grow. In the early days, focus on improving your products or services, learning from any mistakes you make and building customer or client relationships.