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25 Tips to Make Sure Your Startup Doesn’t Fail

November 14, 2021
By James Gussie

Entrepreneurs must be aware that, as with any other industry, the odds of success are stacked against them. The journey to entrepreneurship can seem like a dangerous endeavor and many people will tell you not to do it. If your startup succeeds or fails, there is no turning back: this should give you all the motivation necessary (or perhaps more than enough).

The “startup focus” is a series of 25 tips to help startups succeed. The article focuses on the importance of having a clear mission, and how to avoid common pitfalls.

The fact that the majority of companies fail should come as no surprise. We can at least put a figure on the failure rate—75 percent—thanks to research by Shikhar Ghosh, a senior professor at Harvard Business School, and perhaps avoid being part of it. How can you ensure that your new company won’t be one of the three-quarters of venture-funded companies that fail?

On the eighth edition of The Bcast, Bplan’s official podcast (at 9:31), Peter, Jonathan, and Caroline Cummings discuss why companies fail: Subscribe to The Bcast on iTunes by clicking here »

Here are 25 pointers to help you get into the fortunate 25%:

Table of Contents

1. Be clear about your goal.

What problem does your business solve? Why should individuals be concerned? You’ll be well on your road to success if you can answer these two key questions.

2. Do something you really like.

If your heart isn’t in it, you’ll be tempted to quit when things become tough. You’ll be lot more motivated to keep going if you’re able to do something you like. Startups need more than a 40-hour work week, so be sure you’re ready to work around the clock!

Also see: If You Do What You Love, Money Will Follow.

3. Have faith in yourself

Because self-doubt may be debilitating, it’s critical that you have faith in yourself. When you know you’re putting all you’ve got into making your company a success, you’ll discover that self-confidence isn’t far behind.

Also see: How to Pick the Best Business for You

4. Surround yourself with individuals who are encouraging.

While you don’t want to be surrounded by “yes” guys, you also don’t want to have to deal with individuals continually criticizing you and your company. Don’t spend your time or energy defending yourself.

Also see 11 Signs It’s Time to Fire a Key Employee.

5. Take constructive criticism to heart.

You won’t benefit from unrelenting negativity, but intelligent critique may be very beneficial. Any chance to enhance a part of your company should be embraced wholeheartedly.

6. Go against popular belief

Learn to recognize when beneficial counsel is just a recommendation to adhere to the current popular worldview.

7. Continue to study.

Do you consider yourself to be an expert on everything? Reconsider your position. There’s always more to learn, so don’t get too comfortable. Everything you learn will help you enhance your company. That holds true for errors as well—all companies will make mistakes, but those that learn from them are more likely to be among the successful 25%.

8. Come up with a catchy name

Because “good” is a subjective term, you should base your choice on what your target audience would like.

Also see: What’s in a Name? 4 Suggestions for Naming Your New Business

9. Put the client first, not yourself.

While you should feel proud of your company, keep in mind that it is ultimately intended to serve your customers, not you—vanity projects won’t survive long. Keep the consumer in mind while making decisions, and you’ll create a product or service that they’ll like.

10. Find out what your consumers are looking for.

It may be expensive to assume you know what your consumers want. Fortunately, doing some preliminary research doesn’t have to be costly—you can use forums, ask questions on social media, or spend money on polling views (and avoid making a costly mistake!)

Also see: What Do Customers Really Want?

11. Acquire the appropriate quantity of money

While you’ll need enough money to give your company a fighting shot, remember that having too much may make you lethargic and eager to part with your money. Of course, you may want the ability to access emergency funds—you’ll simply need to ensure that you can adhere to a tight budget and define what constitutes an emergency.

Also see: How to Calculate the Amount of Startup Money You’ll Need

12. Make a detailed plan.

A business plan may serve as a guide and keep you focused on the job at hand, rather than just being a necessary evil for obtaining financing. It’s all too easy to get lost in the weeds and lose sight of the larger picture.

13. Don’t plan indefinitely.

Don’t get into the trap of believing that just because you’re planning something, you’re being productive. Planning must give way to action—preferably sooner rather than later, so make the most of your time.

14. Continue to plan.

Return to planning once you’ve completed a little of doing. Re-evaluating your company and its strategy on a regular basis may help you identify development possibilities.

The “Plan-As-You-Go” Business Plan is another option.

15. Plan for the future

Nobody knows what tomorrow will bring, but if you stay educated and understand how to identify emerging patterns, you’ll have a far better chance of correctly predicting the future.

16. Adapt

However, no one can anticipate everything—after all, you are only human—so make sure you and your company are flexible enough to respond swiftly to unexpected. Do not follow in the footsteps of Blockbuster, the latest firm to collapse in recent years due to its failure to adapt to changing circumstances.

17. Create an online network

Use social media to interact with prospective workers, collaborators, customers, suppliers, and individuals who can help you market your product or service.

18. However, don’t overlook offline possibilities.

Take a break from your computer, put down your phone, and meet people in person at conferences and networking events. Face-to-face communication is inherently more powerful than communication mediated via screens. Don’t forget to leave a professional business card if you want to convert your meeting into a relationship.

Also see: 5 Forgotten Small Business Marketing Strategies

19. Make sure you’re surrounded by the proper individuals.

Networking is just a means to a goal; you must first choose who is worth your time and who is not. Don’t undervalue the worth of someone who is helpful, and don’t undervalue the destructive potential of someone who isn’t.

20. Commit yourself to your job.

A startup is not like a normal 9-to-5 job; if you want to prevent failure, you must be willing to schedule your life around it. Working for yourself may seem to provide better hours, but to be successful, you’ll most certainly be working much more than the typical 40-hour work week. On the plus side, anything you achieve as a consequence of your hard effort is completely yours.

21. However, make time to unwind.

While every business should anticipate greater effort, you must also find time to relax. You will definitely suffer from burnout if you are unable to rest on a regular basis, inflicting more harm to your company.

22. Everything should be negotiated.

When you’re given a price, keep in mind that a good part of it is profit margin. Is it possible for you to reduce that margin to your advantage? You may not always be able to arrange a bargain, but one of life’s most essential laws to remember is that if you don’t ask, you won’t receive.

23. Create a one-minute elevator pitch

Of course, if you want to persuade the important people that you are worth their time, you must do it in less than 30 seconds. If you can create an elevator pitch that will pique people’s interest and demonstrate that your concept has promise in that amount of time, you’ll almost certainly be given additional time to talk with them afterwards.

Also available for free is our e-book, “How to Pitch and Get Funded.”

24. Begin your marketing campaign

You can’t expect good outcomes if people don’t know you exist. Whatever your budget, there are things you can do right now (like tip #17) to start spreading the news about your new venture—tweet, contact bloggers, and tell everyone who will listen about it.

25. Never give up.

In many instances, businesses do not fail because their founders give up. What is the one most effective thing you can do to ensure the success of your startup? Refuse to give up the fight.

The “how to start startup” is a blog post on how to make sure your startup doesn’t fail. It has 25 tips that will help you avoid failure and ensure your success.

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Frequently Asked Questions

How do you ensure success in startup?

A: It is best to consult with a business advisor, such as an accountant or law firm for advice on how you can ensure success in your startup.

What are some of the things you can do to avoid failure as a start up business?

A: There are many things you can do to avoid failure as a start up business. One thing is to create a prototype, which will give you the opportunity of seeing if people actually want your product or not before investing too much money into it. You also need good marketing materials and an active social media presence in order to make sure that people know about your company.

Why do 95% of startups fail?

A: There are many reasons why startups fail, the primary reason is because of early stage investors who invest in a business that doesnt have proven sustainable growth.