Launching a startup is a fashionable trend of our time. More and more people are starting their projects by offering interesting ideas. Someone wants to become rich and famous, someone wants to realize their skills, and knowledge and achieve something in life. The goal of startup development may be different. But the reasons for their closure are the same for everyone. Let’s look at the most important factors that lead to failures and effective ways to solve them!
Inefficient organization of the team, problems with team building
An effective, friendly, and purposeful team is the key to the successful development of a startup. It is people who create a service/product by fulfilling their tasks and goals. The effectiveness of teamwork depends on many factors, ranging from the correct placement of tasks and ending with the relationship between employees.
If the team does not understand the final results, does not have time to complete tasks on schedule, and is not interested in achieving the final result, then you are unlikely to achieve serious development of your project. On the contrary, improper organization and optimization of work processes often lead to the closure of startups. What should I do then?
Solving the problem
To begin with, you need to understand that you’ll have to work a lot with the team, guide it and adjust the work in the process of building a business. The manager must have several qualities, such as leadership, sociability, and the ability to find an approach to each employee. It is necessary to constantly improve such qualities in yourself.
The organization of the workspace and optimization/automation of work processes have become easier in recent years. Today, the digital market offers hundreds of business applications and platforms for team building. These are effective tools. They also allow you to organize remote work, which is especially important for a young startup. The manager does not need to rent an office. The money saved can be invested in promoting the project and closing financial holes.
The reason for the popularity of business platforms is still different. First of all, these are great opportunities for work and communication, both within the team and with partners and clients.
It is important to think through all the nuances of teamwork even before launching a startup. Think about the number of employees, their level of knowledge and skills, management structure, etc. And of course, decide which corporate platform you’ll use. There are a sufficient number of offers on the market. All applications have strengths and weaknesses compared to competitors. For example, Slack has a library of over 2,500 applications that you can integrate into its workspace. Microsoft Teams allows multiple employees to edit and make adjustments to documents at the same time, which is important for document management. At the same time, the Microsoft application also supports integration, which extends the standard features. With Microsoft Teams SMS, you can interact with team members and customers in a new way. Send mass SMS mailings with offers, make appointments, send urgent messages, collect feedback, and process customer databases!
The issue with the work organization is easy to solve with the help of corporate tools. However, other factors also affect the effectiveness of work, for example, the atmosphere within the team and the desire of team members to achieve the final result of the project. Today, the topic of team building is very popular. There are various courses. They are designed to unite the team into a single whole. Some coaches and specialists implement various techniques aimed at bringing people together. The popularity of team building speaks best about its effectiveness. Do not ignore it. The more cohesive the team, the better it works, the higher the result, and hence the success of the whole business!
Lack of resources and funding
The availability of resources is as important a fact for the development of a startup as a cohesive team of professionals. According to statistics, a lack of funding leads to the closure of most projects. Limited resources (not all of us are millionaires), as well as the failure of the project to make a profit, become the main reasons for failures. At the same time, the uniqueness and relevance of the idea do not play such a big role. If your resources run out before you start earning, then only third-party investments can save you. Otherwise, you’ll be disappointed.
Even if you create a cohesive team that wants to implement a startup as much as you do, you will not be able to keep people without paying them a salary for their work. Yes, the use of corporate platforms allows you to save on office rent, but the savings does not cover all the costs at the first stages of business construction. A good manager should know well where to find funding if his own resource runs out.
Solving the problem
Lack of resources for maintenance and development is a common reason for closing projects, including businesses of any size. Fortunately, it is much easier to find financing today than it was a few years ago. Moreover, a small startup does not require huge cash injections. Finding investors becomes even easier. The main thing is to create a simple and fascinating presentation of your project. You have to show a potential investor how your startup is better than hundreds or even thousands of others. How will your project interest the consumer? What problem does it solve? A stylish, interesting, and memorable presentation increases your chances of success. Prepare it in advance, even if you have everything in order with resources. May you always have a backup option for unforeseen circumstances?
Where can I find third-party financing? First, try to search among your friends and family. Such investors are the easiest to attract. They can invest money solely because they trust in you. But here you should be careful and immediately discuss all the nuances, including the failure of the project. There is always a chance that the startup will fail, and you’ll have to return the money. Discuss all the issues in advance so as not to lose a loved one due to a possible failure.
Crowdfunding platforms. These are special platforms where users post presentations of their projects and indicate the amount for their implementation. Anyone can become an investor by investing a small amount for future remuneration. Crowdfunding is a simple and effective way to attract missing resources. The main thing is to choose the right crowdfunding platform for your project. For example, you should not look for resources for a technical project on an art-oriented site.
Visit thematic events, forums, and hackathons as often as possible. Here you can meet your business angel. These are private investors who invest in young startups. However, business angels can provide other useful resources. They have experience, knowledge, and skills. They can give you tips и recommendations.
These are the simplest and most effective methods of searching for resources. There are also large investors, venture funds, and startup accelerators. But these are not the most profitable options for you.
