Do you want to hear the cold, hard truth? 9 out of 10 startups are set to fail before they can even make money. Now while this is the reality you have to wake up from, it’s certainly not a fixed and unchangeable outcome for your entrepreneurial venture. Your success or failure will not rely upon the historical data and industry statistics, but from how well you manage daily operations.
Here are five tips for assuming better command over your startup operations:
Consolidate and Negotiate.
You can save a lot of startup capital by consolidating expenses and negotiating for better prices with your suppliers. For instance, a portion of your budget for direct mail services per year can be cut significantly if you decide to bundle in your print and mailing house services to one provider. This not only saves money but lessens the things you need to keep track of as well. Once you’ve negotiated initial prices for inventory orders, make it a point to renegotiate frequently, especially for businesses that underwent through a recent growth surge, something that allows you to demand better pricing from your business partners.
Measure Every Detail of Your Startup.
Knowing precise metrics about your business is prudent business management. It’s especially important if you are trying to manage finances and balance cash flows. Drill down on your numbers and get every detail right. According to an article published by Forbes, metrics that play a critical role in any startup management includes revenue run rate, average revenue per user, customer acquisition rate, churn rate, and operation efficiency. Depending on the space you operate in and the size of your startup, you may need to bring in additional metrics to get more accurate information.
Be Involved in Training and Hiring.
Startups have the advantage of having fewer employees than larger companies that have 100 or more under their payroll. This means you can give each employee more of your time and focus. Be involved with your employee’s professional growth by having them trained through in-house programs and workshops, giving advice and mentorship when possible, and giving them enough recovery time throughout the work week. When hiring, you should also be present instead of having your HR department or employees interview for you. Ask about their competencies, experiences, and other related data that can add to their credentials for the job position.
Implement the Right Tech.
Startups are commonly associated with technology, and for good reason. The rise of startups ushered in a new era of unprecedented technological advancements in different spaces. And as more technology got introduced to the markets, more startups popped up. A must-have tech is case management software. PNMsoft defines case management software as technology dedicated for real-time work allocation in operations centers. It consolidates all relevant data including contacts, calendars, cases, projects, documents, schedules, and billing.
Secure Your Sensitive Data.
Because of a loose business structure, many startups are prone to data breaches and malware attacks. Moreover, since startups have limited capital to work with, few can afford to invest in high-end data backups, anti-malware protection, and 24/7 cyber security protection services. If you don’t have the budget, make sure to implement proper safety protocols to increase the layer of security for your data. This includes but is not limited to requiring employees to change their account passwords at least every month, disposing physical and digital copies of data appropriately, and using Firewall and other free or cheap security tools available.
Startups can be a pain to manage, especially during the first few months where the company is vulnerable to almost anything it comes into contact with. Nevertheless, it is a worthwhile business to pursue. Use the five tips above to improve your chances of survival in the startup world and perhaps even some day exit a unicorn startup with a serious wad of cash in your pocket.
Cameron Johnson is a business consultant and social media expert. Over the course of his career he has conducted case studies on both social media optimization and non-profit marketing. Cameron has also had the opportunity to speak at international marketing conferences and was recently recognized as one of the world’s top 100 advertising experts to follow on social media.