Make it or break it: why some start-ups make it and others don’t

Launching a start-up is always a risky move, but some motivated entrepreneurs are willing to do whatever it takes to survive the set-up-for-failure years. Even when they know that 90 percent of start-ups fail due to competition or other factors that make or break a starting company. Generally, a start-up will either swim or sink, but what are the all-defining factors that make your organisation withstand the heavy tides? 

Decision-making

Any business involves taking tricky decisions, especially for businesses that are just starting or haven’t even left the starting blocks. Young entrepreneurs with big dreams often lack the practical experience or a skilled hand to make those dreams a successful reality. Listening to the right mentors and having the will to listen to their advice is what could set you apart.

Eyes on the prize

It may sound evident, but to run a successful start-up company, a beginning entrepreneur must have three qualities: focus, motivation, and commitment. Most entrepreneurs have this, as starting or even thinking about taking such risks requires tons of motivation but keeping your eyes on the prize (read: your goals) is something that takes long-term effort. You must be completely committed to your objectives. Even if your strategy does not work as planned, you must maintain your motivation.

If you can manage to keep these three qualities in mind and apply that daily, you are on the road to achieving your business goals. 

The prize

The price to pay

With start-ups, the stakes are high and so are the costs to get started. Start-ups often need investors and funds to make ends meet and instant profits aren’t guaranteed. It’s no surprise that most start-ups fail before they got a fair chance to fight because of a lack of funding or inadequate financial management. For example, taking on heavy loans might backfire if you do not carefully analyse the return on your investment and financial capacity.

Taking risks is part of the deal, but if you make sure any risk is a calculated one with a backup plan you minimise the possibility to make poor financial decisions.

The price to ask

The 4 P strategy is one of the principles of your business strategy, one where Price plays an important role. Putting your products to market is daunting, no matter how much experience you have in the field. For one, you must thoroughly understand your market, which takes time. Two, inventing a product or coming up with something innovative doesn’t mean the market is waiting for another handy product or concept. You must do your research and see whether there will be enough demand for your idea’s once you launch them on the market. Many start-ups fail because they lack this kind of market knowledge. Recognise that the true purpose of your products or services should be to provide the greatest advantage or benefit to your customers. Knowing what your audience wants and how to entice them to buy your product or service is critical for business growth.

Come on chameleon

An idea gets you somewhere, but an idea that continuously evolves and adapts to the environment or demand gets you everything and most of all success. Test your service, listen to customer feedback, and don't be afraid to change gears or adapt your strategy if you’re not instantly getting the desired result. Keep your head held high and try to make it work.

Remember, falling isn’t failing

Even the greatest entrepreneurs have failed multiple times before finally finding success. They only succeeded because they never stopped believing that one day their dreams would be destined for success. Only because of failure you can learn to do better. 

“Why do start-ups fail” checklist (stay away from these as much as possible):

• Not having sufficient focus, motivation, passion (like we said, eyes on the prize)
• Not willing to listen to others such as mentors or even the market
• Listening to the wrong people, don’t trust everyone
• Not surrounding yourself with experienced mentors
• Lack of important knowledge about finance, marketing, management and operations
• Wanting too much at once, taking out sky-high loans
• No market need
• Too much competition
• Poor marketing strategy
• Trusting in processes or business intelligence that aren’t scalable 

“Why do start-ups” thrive checklist (go for it!):

• The start-up is driven by passion and commitment
• Sticking to the plan, but with the willingness to adjust where necessary
• Patience and persistence
• Observe, listen and learn, from your advisors but also from your market (a.k.a. consumers and competitors)
• Expel leadership with a capital L: lean principles raising just enough capital to reach the next set of key milestones
• Balancing passion and knowledge