Every year new start-up’s (we call it a small business in the initial stage) join the business industry with creative ideas and with a hope to establish themselves as business giants but some fail in achieving this goal. So, what’s the reason behind it? Why start-ups fail? Is there any solution to overcome it?
In this article, we will discuss on why start-up’s fail and how to overcome it to turn your small business into a big one.
Let’s find out probable reasons for a start-up failure..
NB: Read if you are a Student or Entrepreneur or Professional in a company.
For a very long time I have been thinking and practicing about how to improve people’s ability to be successful and in a way learning. It has always occurred to me why when a good tool or process is given to a good candidate result in higher output, but even better tools and processes fail for bad candidates.
The primary thing we all know is interest. But once that’s achieved you still suffer from bad output. Then I come across is intensity of interest. Then the motivation and gain of the intensity of interest. But still it was hard.
Then recently I concluded, everyone is missing some core things that they need to know to leverage and intensify their speed towards becoming the better self. The followings are key essential human characteristics that need to be correctly identified and practiced:
2. Problem solving 101
3. Responsibility, Objective clarity and ownership
4. Science and engineering of successful networking and practice to leverage daily.
5. Effective Googling (Or, you can say effective way of asking question and finding answers)[because if you can’t google correctly you get garbage ]
6. Emotional intelligence (a basic average here is still good)
Each of these points have many broad steps if practiced will work really fast in your favor.
I think these foundations and principles of getting successful should be taught to entrepreneurs, professionals, students and even normal people in their curricula. Even Superman had Kryptonite These are actually not difficult and can be taught and practiced easily.
So I have started sessions for our employees weekly. In future I’ll conduct this in colleges we normally get interns and hires from. We hope we can get people who already practiced and acquainted in these processes.
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So last week we introduced a cool new feature called saved searches and we introduced a budgeting of such. With this tool you can save the search that you frequently do and a bit frustrated to filter the Cash summery every time.
As shown in the picture. Once you searched something in the cash summery, click on the star icon to save that search. You can keep the dates boundary for your search or keep it open for adjusting to any date.
Plus you can mention the budgets you want to create. You can do budgeting for either income or expense for now.
This kind of budgeting would help you in budgeting expenses for a particular project or for a particular employee or activity that you tagged.
We’ll soon publish a video explaining what more and effective you can do with this tool. Till then ponder over your own ideas and create fabulous saved searches and budgets for them. And do let us know how it helped you.
Companies with high employee retention issues are hard to succeed. As we are digging deeper into analytics we are becoming closer to have good maths on these points.
How much of new employees your existing organisation can handle and what’ll be it’s average and worst financial conditions.
We advice companies with high employee cost to revenue ratio, to keep an close eye on that ratio. If at any point that ratio is exceeding 0.4 points in any directions, your organisation will have trouble handling it.
So we’ld advice, have a process in place. And a good training program for new employees at the services that is giving you higher sales volume and higher profit. And keep an close eye on it. And keep ramping up sales here. But understand that ratio.
Grow up team in new services slowly. And so the sales.
Organisational turbulence is one metrics that takes most companies go down. But it’s hard to see early on. Often the problem arises after 5-6 months. And make it difficult to handle, even if you are highly profitable.
Growth kills more businesses at faster rate, and stability kills businesses at a slower rate. So keep growing, but understand stability keeps you liquid.
So before you keep growth on trajectory, ensure fund of at least 3 times that of CIH needed, hence a profit index of 200-300%.
If you are planning speeder growth and you are just 100% in profit index. Takes external investment of another 2times of CIH needed, suggested in Periodic Profitability Graph, within one month of beginning the growth implementation. And if in any moment during high growth, your profit index reaches 120% or below, ramp sales up and you need to keep that number there to not fall out pray of downward spiral.
For high growth, I mean to say at par or above 20% of your present organization head count.
Training and education are important part of a healthy organization. You need to help employees improve their skills. Also you need to take business coaching continuously. That way you always remain more knowledgeable, advanced and well functioning organization.
WHAT ALL YOU NEED TRAINING AT:
Technical & job oriented : New coding language, new form of marketing, sales and customer support.
Communications & behavioral : You can reduce 30% work load just by communicating better amongst your teammates and to customers.
Cultural & team-coordination : If you have all people share same cultural philosophy for your organization, you’ll attract more customers and good staffs to your organization. And team-coordination training make your team to work to achieve the same goal.
Customer Induction : This is not a training but an education. Monthly once you need to invite one of your customer to your place for 3-4 hours, or may be on a dinner. Gather all of your team. Let the customer tell their story. How they do shopping and how they use your product or service. And make all the employees, be it marketing person, sales person, accountant, managers, HR person, product people or your office staff, to understand how they can improve the experience for your customer.
Listening & questioning methodologies : Although it’s a part of communications training, I want to highlight it as a regular exercise. Every week, your employees should learn to question and then listen to the other person. This exercise will gradually boost the performance, understanding, confidence and ultimately the creativeness and innovativeness of each person.
NOW HERE’S MULTIPLE METHODS TO DO THIS:
Have a small library. Else here an eLibrary with Kindle.
Subscribe to Udemy etc annual plan for your team.
Invite expert speakers or trainers to your organization.
Sponsor your employees to workshop events.
Now what are the other training that should be included? What are other sources of training?