If you are an aspiring entrepreneur, you have probably already heard of the sobering data about the success rates of startups. According to research and many business consultants in the Philippines, 8 out of 10 startups are going to fail within their first year of operations while 96 percent are going to fail within the first 10 years.
And as if it isn’t already challenging for startups to just get off the ground, entrepreneurs are going to have an even harder time building up a startup company that is going to thrive in the global marketplace of today.
So how do successful startups do it?
Here’s a hint: Don’t try to do everything all at once. Startups that stretch themselves thin trying to accomplish many things just end up failing in the other, more important aspects of their company. If you want to build a successful and sustainable business, make sure that you carry out these three things that startups fail to do in their workplace.
Failing to Focus on Results
Everyone would probably agree that the number one reason many startups fail is also the same reason some startups succeed: results. The problem is that there are too many decision-makers in companies that fail to establish the key results that they want to achieve.
Studies have confirmed that 86 percent of people from companies all over the world, whether they are a startup or a Fortune 50 company, claimed that the key results were not clearly defined and understood throughout their organization. In addition, 84 percent of the respondents also said that their priorities are frequently changing. This creates chaos and confusion regarding the key results that they need to achieve.
Many startups fail to define what their end-goal looks like. Determine what the results your company is working to achieve, whether it is revenue, cash-flow, or customer retention. Whatever it may be, make sure that everyone in your startup is focused on delivering it.
Failing to Foster a Company Culture
It should not come as a surprise to know is that for a growing startup, one of the things that yield it the greatest ROI is time invested in employees. The people in your business are your most valuable asset; they need and deserve attention and time. If you want to create a lasting impact on your people, foster a company culture.
And no, culture is not just what’s written on a shirt you hand out or a poster on the wall. Company culture is how you and your employees think and act in your organization. Culture is shaped by conscientious leaders who are fair about who is hired, developed, and promoted.
Foster a company culture by focusing on your employees and expect the results to come.
Failing to Respond to Feedback
Feedback should be something that your startup receives every day not just from your customers, but from your mentors, peer groups, and most especially, your employees. You are missing out on a golden opportunity if your company has gone one day without receiving any feedback.
However, feedback is not just something you listen to or receive and forget right away. Challenging as it may be, try to respond to these feedbacks by creating a different experience and making changes for your team.
Many business consultants in the Philippines agree that if you want your startup to succeed, you shouldn’t try to do everything all at once. Once you lose focus, you neglect to accomplish the three things that make a thriving business.
Focus on doing these three things first because once you do, you and your startup can grow, adapt, and thrive in the global marketplace – no matter how volatile it becomes.