Do you know what part of the iceberg sunk the Titanic? Most people think that it was the piece sticking out above the water, a visible problem, but actually the large part below the surface is what caused the Titanic to go under. This situation is a perfect metaphor for your startup business. You may have the best (unsinkable) business idea, but if you ignore these hidden dangers, you’ll end up sinking. Here are the common mistakes that sink 90% of startup businesses.
1. Lack of Vision
If you know what you have to do today, but not where you want your business to go, you won’t get far. You can’t start your journey if you don’t know where you want to go. Define what you want to achieve with your product or service and then the steps you will need to take to get there. This is where you will need to look out for your own icebergs, or the problems that arise along the way.
2. Burn Out
When you start your own business and you plan the destination, it can be easy to become overworked. You know what you want and you want to reach your goals your way, but too much work can stress you out and make you more likely to quit. Imagine running everything on the Titanic, from steering to navigation, to iceberg watch, when you spread yourself too thin, things slip through the cracks and you will likely give up.
3. The Right Team
As said above, you can’t run a business by yourself, but who you hire makes a big difference. Most business failures are due to a people issue, not a service or money issue. It’s estimated that 23% of startups founders that failed attribute their lack of success to having the wrong team. Don’t hire anyone just because you are overworked. Taking the extra time to properly screen applicants and ensuring they align with you work ethic and your business’ mission statement will save you in the long run. The right crew helps you sail smoothly.
4. Getting Stagnant
The biggest killer of small business is complacency. Something is working so you fail to adapt to a changing market or innovate. Just because one advertising method works today, doesn’t mean you should ignore new trends or technologies. Imagine a company that failed to go digital today because traditional methods were working for them.
Many startups may fail each year, but it doesn’t have to be a guarantee. There are a number of small businesses that have found success in today’s market because they are able to adapt to changes and adjust their plan when needed.
Much like a startup business needs to adapt, their insurance does too. A policy you had one year, might not always be the one that is best for you or your business. To receive a free quote or review an existing policy, call us at 724-929-2300 to speak with our insurance experts. They would be happy to help you find the right policy for your startup and help keep you afloat.