When launching a startup, it’s difficult to get everything right. However, some things need to be right from day one if you hope to be a successful business. It’s not uncommon for new businesses to focus more on the exciting and revenue driving tasks, such as marketing and sales. But the not so sexy stuff matters too, and if overlooked, can be a recipe for disaster for startups.
While there are many areas which can be overlooked when launching a startup, we’ve listed 4 of the most common areas, and noted why these should never be underserved if you want your startup to be successful.
One area new startups get wrong more than any other is recruitment. When you’re starting a new business, it can be tempting to try to get things up and running as quickly as possible, but cutting corners on recruitment is almost always likely to result in a net negative.
Not only do startups rush the process, they can also try to bring in the cheapest recruit possible, with the aim of saving money, but without considering the lack of knowledge, expertise, and people skills this less paid employee might have.
Getting recruitment right will always pay dividends, as a business is only as good as it’s people.
- Cash Flow
A lack of cash flow is often cited as the main reason why new businesses fail – and it’s understandable why this is. Poor planning up front can lead to cash flow issues before you know it. It could be money wasted on a big initial marketing campaign which was supposed to yield high results to pay the salaries for the rest of the year. It could also be something more simple, such as not properly costing required tools and equipment.
Getting cash flow right isn’t necessarily difficult, but it does take marticulus planning from day one. Have a budget, and account for things going wrong, because with any new startup they almost certainly will.
It’s understandable, and perhaps even advisable, that a new business is frugal with it’s initial spend on business tools, but that doesn’t mean scrimping for the sake of it. There are many tools and apps which can help businesses run more efficiently and actually save time and money, such as project management tools, customer service software, and HR systems to name a few.
Be efficient with your initial budget for your startup, but also be smart and invest in the right areas.
- Employee Engagement
The first few months, or even years, of a new startup business can be a difficult time. Not only for the owners, investors and senior execs, but also the staff. A team of people working flat out to keep the business above water will not be a happy team at all – and employee engagement, or lack thereof, is a key reason for high staff turnover in startups. It is also vitally important to create a vibrant culture in your start up to retain staff.
A business is only as strong as its people, so invest time and energy in them just like you would for any other area of the business.