Startups tend to fail. In fact, 90% of all startups fail. That’s just the way it is, and the failure rate of startups likely isn’t going to be going down any time in the future.
But why is this? Well, nobody goes into business thinking they’re going to be just another one of the 90% of failed startups.
But entrepreneurs make loads of mistakes, and more often than not, those mistakes end up bringing their startups under.
If you want your startup to be one of the lucky 10%, keep reading: here are 7 of the most important elements of any successful startup that you should never forget.
1. Name
The name of your business is the very first thing that your customers see.
It is the very first impression of your company and therefore plays a significant role in your business’s success. Do not rush creating your business name.
Take your time to create the most suitable name that would reflect your business in the best way possible.
Make sure your business name is easy to remember and that people understand what your business does as soon as they hear its name.
This means avoiding vague names like your initials, your town, or your own name.
If you’re struggling to create a good business name, consider using a business name generator that will give you some great ideas.
By brainstorming yourself, using a business name generator, and asking your friends and family for feedback, you should be able to create an excellent name for your brand.
2. Idea
Avoid starting your business with just a vague business idea. It’s never a good plan to just substantiate your idea as you move forward.
You need to have a solid idea for your business, and it must be relevant to your target audience.
Do some research on the needs of the market before launching your startup and make sure that your idea fits into the market.
3. Story
Next, you need to have a good story that you’ll communicate to your audience. People don’t want to do business with boring corporations.
They want to work with and buy from businesses that have authentic stories. This story should allow your business to connect with customers on a much deeper level.
Think about who exactly is behind your business, why they’re doing what they’re doing, and what exactly you bring to the table.
4. People
Carefully choose who your partners and employees are because the success of your business greatly depends on the people who represent it.
Make sure that everyone is on the same page and that you have a clear communication strategy set in place.
Each team member of your business must bring something valuable to the table and ensure that combined, you create a great skill set for the development of your business.
5. Data
It’s very important to have the right data before starting your business. This means doing in-depth market research to understand who your audience is and what they want.
You also need to know everything there is to know about your competitors, suppliers, partners, and factors that will influence future demand.
You might discover that while you think that your product is excellent and that everyone will want to buy it, that’s not actually the case.
Don’t assume that you know everything because that’s just a recipe for failure.
6. Money
Have a clear budget for at least the first year of your business, and avoid being vague at all costs.
If you want to attract investors, you need to have a very detailed budget for at least the first year of business.
This will make your business look like a reliable and thought-out investment. Don’t start business operations until you’ve figured out where you’ll get the funding.
The last thing you want is a business that seems to be taking off but is forced to shut down because of a lack of funds.
7. Plan
Money isn’t the only part of business that requires a detailed plan. You need a thorough plan for marketing, communication, pricing, supply, human resources, and also potential downfalls and risks.
Sure, you’ll probably need to adjust this plan as you move forward, but it will be an important and effective guide in moving your business toward success.
Detailed plans will ensure that your steps are well measured in case something goes wrong.
Therefore, if you want your startup to succeed and not fall into those 90%, don’t forget these simple but essential steps that you should follow.
