By now, you know it is no rocket science that growth is a necessary evil for every startup business. Surviving on small cash flows are never going to be substantial to keep the business running for long. The confluence of skills, a good team and sustainable funds is not good enough to be ready for the big break which almost every startup owners always anticipates.
Gradually, startup owners are grasping the fact that, the “fat” cash is not the utmost need for their businesses. There is also the truth that, not all startup businesses can perform well without the angel fundings. Some businesses are capital intensive and runs on really good cash for operations; making most startups falter their brilliant ideas because they may not have figured out how to position their businesses to take off without a fall and the big monies.
The days of startup businesses relying on investments and angels to save off what’s left of their small businesses are long gone…; ha! certainly not. They have become very competitive, so much that, many startups forget their purpose, miss their targets and worst, don’t even get the breaks they longed for and chased after.
It takes a fugly realization only when they become clueless of their next steps to know they weren’t actually ready for the growth.
Running On Hard Cash?
You are not alone if your business has been running on no income for some years without the big break; this can be discouraging. Nonetheless, what you need is not a big break. What your business need is a new strategy- a realistic big plan.
The startup industry is bandwagon; millennials are calling the shots every where and they get taken aback by the real challenges after a few years of their launch. Growth becomes a constant setback and competition sets them into total burnout. It is not because they launched out too soon or late, but because they launched out without a proper plan in place.
There are many startup businesses out there without a business plan or a strategy. They are just ideas set out into motion taking one lucky step at a time. If a startup business was properly planned, with management strategies, operational plans and growth strategies laid out before it’s launched, they would not run many years without the needed break. Growth challenges would be encountered, but they do not impede success, because there is always the plan to reshape things. When it fails, it is revised to keep running. When there is no plan at all but just a running idea, you will survive for years without any progress.
Does Every Startup Need Funding or a Financial Breakthrough?
Here’s the big question: Do your business need a break?
Now, understanding the importance of the question to your business is the first step to getting it right.
What is this big break or leap, what does it mean to the business?
Why do your business need it?
When do the business need this step?
How would it be implemented?
What would be the outcomes?
Most startups desires the financial cushion for their growth, but often fails to provide the answers to these questions.
Starting a business may seem exciting; but running it is not a cakewalk.
Today, millennials are into entrepreneurship to escape unemployment, boost egos and fulfill their independent dreams. Anyone can start a business, but certainly not everyone has what it takes to run it. Higher education is not a prerequisite to becoming a successful entrepreneur or to run a successful business. A higher intelligence beyond the “books” is a must to get it right. It is one old source to why “local” small business owners successfully managed businesses. It is not because they attained higher educational qualifications or read more Harvard business reviews, but because they had higher (unique) understanding of running businesses not by the book rules. (Visit blog to read on rising entrepreneurs; the missing link to read more on entrepreneurial intelligence ).
Is Your Startup Ready For The Expected Break?
How do you know when your business is ready for the big break? What does it take to be well positioned for it? (Read article on positioning your startup business on blog – click link Rising Entrepreneurs ).
Many things must take shape to get set and to grow. Like a baby, businesses go through stages; they master each stages to build on the next phase. Each of these stages must support the next and must aim towards business goals.
Here Are Some Ways To Know Your Business Is Ready For The Big Break.
Every business needs a plan. Not just any plan but a strategic plan. What do you execute, if there is nothing in place? Eight (8) out of ten (10) startups have no business plans. They have no specific business goals. Their primary objective is to be profitable.
a. What is the purpose of the business establishment?
b. What are its target goals? What are its financial projections?
c. What are its competitive strategies?
d. Who are its target customers and how do you reach them?
e. What are the communication plan?
f. How do you market the brand, its products and services? Etc…
These are basic plans of every businesses. If your startup do not have these plans in writing and documented, the business is certainly not prepared for the next big stage.
Do your business have a plan? What are the plans expected outcomes?
A good team builds a good business. You must build a team that understands the business goals and visions. A team that shares in the business values. The right team for the right work. One man can not build a solid business. To be positioned and be ready for the break that sets the business apart from competitors, there have to be an excellent team at work.
Without the team, the next stage can not be achieved. Most of the times, startups do not have the adequate funds to build the team they need so they end up doing all the work by themselves.
It’s great to have bits of knowledge and some experience about every aspects of the business. However, becoming that “big business” you need a good team.
How can you build an excellent team? Who does what work and how?
(Read article on building a solid startup team on blog – Click link to read How to build startup team ).
3. Ownership /Structure
Who owns what? What percentage does the business retain? During some of my one on one coaching with startup owners, this happens to be one of their leading challenges. How their businesses distributes profits and shares have left some startup owners bankrupt and not too far from shut down.
There are startups operating partnership businesses, sole ownership, etc. In some cases I had reviewed, partnerships were established on mere verbal agreements without proper documentations of the kind of partnership, shares percentage and so forth. For a business to be ready for the big break, ownership must be properly defined, to determine what goes back into the business for the break it needs to grow and to whoever owns whatever.
The structure sets the business into motion to build the foundation to succeed. Business structure does not limit us to the physical building where it is operated. A structure includes, hierarchy, operations, management activities etc.
(Click on link to read more about partnership – Startup partnership – ).
The customer is the business. When there is no customers, obviously, business would cease to operate to avoid debts. Your customers must create customers for your business’ success.
a. How do customers create customers?
b. How can you retain customers?
There can only be growth expectations when there’s customer growth. Indirectly, customer growth indicates business growth. In some few instances, this may not be the case. There can be a customer growth and business may still not be making profits as expected.
Your customer base is also a way to be certain for a financial breakthrough for a big leap.
(Read full article on customers on Startup Customers – ).
Valuation is not only necessary during a sellout of a business. Knowing the worth of your business is also important to determine what value is needed to generally ascertain growth.
a. How much is the business worth?
b. How much value is the goal?
Business value may help you to determine your products and service pricing. It also helps in strengthening competition.
Most importantly, it determines the value you get from potential investors to give the business the big break.
6. Connections / Network
In this age of the business world, businesses build businesses and networks build businesses. In todays business era, business referrals, and network connections are contributing towards business successes and growth. You must not do without them. Industry relationships also fosters healthy business competition and general success. Be a part of the big industry organizations and networks.
a. How do you create leads for these relationships?
b. How can they be maintained to boost growth and profitability?
(Check full articleBuilding business relationships on on blog ).
Is your business ready for the big break? Is your business ready for the financial breakthrough to set it on edge for a big leap? Talk to our team at Commec Ghana to help you discover the big potentials for your small business.
Our business packages and offerings are tailored just to your business needs.
Visit Commec’s subsidiary startup and small business site to discover more via http://www.thestartupreneurs.com. Business service partnerships are available for our startup & small business clients. For enquiries: Contact our business development team via email@example.com