Do you dream of starting your own business? Do you fear it might not succeed? If you’ve started your own business and it’s starting to fail, then it might help you to know that you’re not alone. Did you know that almost 50% of small startups fail within the first four years? And almost 82% fail due to cash flow problems? If you feel like your startup business is falling down, then Akhtaboot – the career network is here to share with you some helpful tips:
It May Be Time to Plan An Exit Strategy
There are a few revealing signs that indicate you need to cash out. The first sign is that you’re losing money after three years of starting your business. It’s natural to lose money during the first year or two, but it you’re not seeing the light at the end of the tunnel, especially by the third or fourth year, then its probably time to plan your exit strategy. The second sign is that the business is starting to take its toll on you, and you are mentally and physically worn out. As a result, you can either opt for selling the business, closing the business, or just selling its assets.
Plan Your Next Move
If you’re very confident that your business has the potential to bounce back, then give it one last go. If you are running out of money, then you have three options to consider: you can raise capital, make money, or cut costs. If you still have the financial resources, and you are certain that you can avert making the same mistakes, then give your startup one last chance. However, you must ask yourself if you are willing to deal with another failing venture, if all your efforts go to waste.
Change Your Strategy if You Plan on Entering a New Market
Look at your direct and indirect competitors. Are they following a diversification strategy? What are their pricing strategies like? How differentiated are their products? It’s very important that you study the competitive market if you want to start your own business. When you study the market thoroughly, you will steer your startup towards success. Before you decide to enter a new market, make sure that the threat of substitutes and the threats of new entries will be low.
Learn From Your Mistakes
Winston Churchill once said “Success is not final, failure is not fatal: it is the courage to continue that counts” Learning why your startup failed, is a major step that you can take to avert any future mishaps. If your failure is due to a major gap in your strategy, then you will know what factors to focus on if you intend to start another business in the future. You must keep in mind that learning from your mistakes is a chance for you to start over. It may surprise you to know that your first failure can actually open new opportunities for you.