Everyone has read stories about tiny startup companies that became billion dollar international titans, but the reality is that a lot of startups never make it off the ground and are dead before a single investment dollar is landed. An entrepreneur might have the idea of the century, but success depends on smart implementation and as few mistakes made as possible in those difficult first months of operation.
Consider These Strategies & Tips to Increase the Likelihood of Startup Success:
1. Control the Budget With an Iron Fist
Nowhere is it easier to sink a startup than with the budget. One of the easiest ways to make investors nervous is by being unable to say where the money went when more funding is required. A business plan helps with this goal as well as consistent attention to how the business spends money. A new business that must obtain more funding early in its lifespan may be penalized for not budgeting appropriately at the start.
2. Adhere to Six Sigma Strategies
A term used to define methods used to improve quality and output, Six Sigma is a technique designed to create conformity within manufacturing output. The technique is best thought of as intense quality control that places responsibility on various workers to maintain a specific facet of the process. For example, one employee might be tasked with reducing costs. Another employee might be put in charge of recycling, as a way to save money.
3. Don’t Skimp on The Business Plan
A future business owner might not have any clout in the startup industry, and as an unknown name, convincing investors that they should throw money at an untested businessperson isn’t the easiest thing to do. A healthy business plan that covers every facet and every contingency is always well-received by potential investors. A business plan might just be an estimate of value, resources, activities, and costs, but the data is invaluable for investors. Additionally, this plan must be updated regularly to ensure projections remain accurate.
4. Act Like a Startup
The hardworking people in a startup might feel like they can conquer the world and produce a product or service that’s just as amazing as a Fortune 500 Company, but care must be taken to realize that a startup is not just a micro-sized version of a huge business. A startup must use creative solutions to accomplish the same tasks that members of a large company take for granted. Trying to act like a large company just adds stress to the equation and may result in lost revenue.
5. Define a Business Model
There’s more than one way to run a business, and the type of product or service will often influence which business model a startup owner may choose. Every business model possesses four common attributes which include creating a service or product, marketing that product, getting the product to the customer, and keeping up with the money made and spent from the endeavor. For example, a startup may operate as a reseller, which uses another company’s products for sale.
The reality of startup businesses is that many fail without ever selling a single product or providing a single service. Careful planning takes time, but it’s essential that a startup doesn’t try to open its doors before that planning is complete.
Six Sigma’s certification program is used worldwide across all industries and has proven to increase customer satisfaction and overall profit. Whether your are in the US or UAE, 6 Sigma makes it possible for employers and their employees to register for classes.