We’re all aware that 95% of the startups fail, but the question is, would yours make the cut? If you’re here, chances are, the seed of doubt has already been planted in your mind. As heartbreaking it can be to realise that your startup isn’t sailing high, it can be even more devastating to drown. After investing your blood, sweat and tears in your startup, it takes courage to leave everything and bring it to an end. But it’s only smart, as a sinking startup can do beyond financial harm if not stopped right at the first sight of drowning. Let’s take an objective look at the signs indicating that your business is drowning, with a heavy heart of course.
Startups are bound to struggle monetarily during the initial phase. The profits haven’t started pouring in, the customer base is in the making, employees have to be hired and trained; this uses up a major chunk of the investment. But this is a temporary phase, once your business starts flourishing, it should compensate for the expenses at your startup’s inception. But after calculating multiple times, if you’re coming to the same conclusion that your startup is only gaining a negative ROI, even after a reasonable period of time, then it’s perhaps time to abandon ship. Ideally, when you’re spending more than the revenue generated, that’s your cue.
Losing focus of goals
Do you have multiple days wherein you not only lose sight of your long planned goals, but cannot distinctly remember why you started your business in the first place? It’s one thing to keep improving on your vision and another to deviate from the original plan because of blurry goals. When you’re not repeatedly evaluating your business’ performance with regards to your initial goals, and neither are your employees heading towards a shared vision, it’s only safe to conclude that you’re no longer focused on your mission. Without well defined goals that you work towards regularly, your startup is destined to go down.
Your team can either make or break your startup. A well coordinated team can become a strong backbone for your business and with consistency, can take it to new heights. But a poorly functioning team would act as an anchor for your startup and only slow your dreams down. It’s crucial to understand in what capacity your employees contribute to your business and how. Your employees’ efforts right from day 1 should lead towards a certain degree of growth in your startup. Even so, after settling in your business for a while, employees definitely should have a clear picture of the functioning, goals and gameplan at the operational level. But, if you often catch your employees being unable to improve on strategies, ideate, or overall fail to meet the company’s needs, then that’s a bad sign.
Here are few things that nobody would tell you about hiring your dream team.
Excessive Price Cuts
Of late, have you been cutting down on numerous necessary expenses because they seem overwhelming when compared to the income? This frenzy of price cuts isn’t truly healthy for your business. It’s always a smart move to cut down on avoidable expenses, but quite the contrary to put essential needs under the “avoidable” category. This indicates that you’re continuously worried about your expenses to a point where you’re skeptical of investing even in the right things.
Well, as hard it is to watch your startup come to a close, you can always start over again. You’ve done it once and now you know how not to repeat the same mistakes again. When you’re prepared to bounce back, our Marketing Acceleration Program will help you with your brand strategy, product positioning, brand architecture, content strategy, performance marketing and more, we will help you transform your startup. We understand startups from their very core and know how branding can get lost somewhere in the way during the initial days with product development. We value your vision, and would make it our own for your startup.