Perhaps you often wonder which specific elements make a startup more likely to succeed than fail in an increasingly competitive marketplace. Indeed, figuring out those essential characteristics is crucial for today’s entrepreneurs.
You’ve probably heard widely cited statistics that remind people of how the vast majority of startups fail. However, that doesn’t mean yours will too. Here are five things that all startups should have for the best chance of thriving.
1. A Plan for Executing the Company’s Vision
Many entrepreneurs take the time required to develop a company’s vision — which encompasses their future hopes for the venture. That’s a great start, but it’s vital to go further and nail down the specific things you’ll do to get the enterprise to that point.
One excellent way to do that is by setting SMART goals which are:
Specific
Measurable
Attainable
Realistic
Time-Bound
Consider an example where you own a bath products company and want to offer more cruelty-free items. Even though you’ve researched some opportunities, they’re not yet part of your merchandise lineup.
In that case, you might set a goal to bring the first cruelty-free product to market within a year. If you already have external partners willing to help and have clear ideas of what to develop, that could be an attainable and realistic goal. It’s also specific, measurable and time-bound, making it fit all the SMART criteria.
It’s also easier to execute your company’s vision when you devote adequate time to strategy development. For example, besides choosing a strategy and sticking to it, you also need to get all stakeholders on board. Bear in mind, too, that your strategy should evolve with your business. Even when you believe it works as intended, it’s still wise to periodically revisit it to confirm that.
2. Leadership with the Willingness to Delegate
Many entrepreneurs initially find task delegation extremely challenging. They often believe they know what’s right for the business, and to let other parties bear some responsibility could be the company’s downfall.
Research indicated that women delegate less often than men and have fewer pleasant interactions with subordinates when they do. However, the investigation also showed that deciding against delegation leaves females with reduced time for big-picture tasks and mentoring opportunities.
It’s certainly understandable if giving tasks to others doesn’t automatically appeal to you. However, trying to focus on its benefits. For example, giving people the responsibilities that don’t align with your strengths opens more opportunities for you to apply your expertise where it matters most. More delegation could also help you stay more focused on single tasks instead of trying to do several at once. If so, your overall work quality could rise.
Delegation could also play a key role in your overall wellness. Running a business brings plenty of demands, and they’re probably on top of your family life and other interests. Even though it’s natural to want to go all-in with your company to help it do well, striking a healthy balance between work and other activities could help you avoid getting burned out and feeling frustrated.
3. Workforce Flexibility
The COVID-19 pandemic quickly illustrated how advantageous it was when companies could speedily pivot to have all or most employees work from home. It also highlighted why a flexible workforce helps a startup succeed.
For example, if you have the infrastructure to help everyone stay productive at home, you could minimize or even reduce physical real estate expenses. Many potential customers and clients will also like the idea of a remote workforce because it increases resilience during inclement weather or other events that could make it challenging to reach a company’s headquarters.
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