Growing Your Startup Business: How to Get It Right
Starting your business might be easy, but making it successful over the following weeks, months and years can be a momentous task.
Over 60% of startup businesses fail in the first three years, so what can you do differently to prevent your business from falling through? While old fashioned, cubicle style offices are diminishing, read on to find out how coworking spaces are changing the landscape for startup businesses.
What Is a Startup Business?
A startup business is a company still in the initial stages of development. You might have a great product that isn’t quite refined yet, or you’ve spotted a gap in the market for a brand new service. Either way, there’s a long road ahead before you can start paying yourself a salary.
There are a lot of decisions that’ll contribute to the success or failure of your startup business, so it’s important to learn as much as you can before committing to life as an entrepreneur.
Why Create a Business Startup?
No matter how you choose to start your business, it’s a game of risk and reward. Since the onset of COVID-19, numerous startups have been thriving. From video conferencing software to apps to promote mental health, creative people all over the world have profited from bringing forward their innovative ideas.
While unemployment is on the rise, widespread economic hardship often paves the way for innovation. The government has acknowledged the importance of startups in the wider economy, investing £500m to ensure continued growth across different sectors, supporting new and existing businesses alike.
But, there’s an enormous amount of effort that goes into creating –– and sustaining –– a new business. It’s not uncommon for new business owners to spend years tirelessly working on their products and strategies. Navigating the treacherous commercial landscape and avoiding the numerous pitfalls isn’t easy, but there are a few things you can do to make your entrepreneurial journey a lot easier.
How to Prevent Your Startup Business from Failing
For daring adventurers and calculated risk-takers, the threat of a global recession may provide the perfect catalyst to start your business. But all of the dangers should be evaluated before diving in. If you’re considering starting a business, make yourself aware of the most common reasons why businesses fail so early on:
- It’s just a bad idea
It can be heartbreaking if your idea simply doesn’t work, but that’s why research and collaboration are so important in the early stages of planning. Not getting the necessary feedback on your idea from friends, peers, focus groups and the market itself can spell disaster for your business before it’s even started.
Working in a friendly yet professional environment –– like a coworking space –– can help you bounce ideas off your team and other people. After all, most of the people working in a coworking space will be doing the same as you, so you’ll no doubt end up helping each other through the process.
- A lack of planning
Failing to prepare is preparing to fail. Without a strategy, you won’t be equipped to deal with the unexpected problems your business will face. You can learn a thing or two about effective preparation from the Navy Seals, who have developed rigorous strategies to prepare for every eventuality.
It’s important to collaborate when putting together your business plan so you can share your ideas and single out any potential weaknesses. Marketing should be a collaborative effort, too, as marketing in the internet era is more of a conversation than a straightforward pitch. Listen to your audience and learn from the mistakes of others to create effective strategies that promote your business.
- You have the wrong business partner or team
This might seem a little personal, but you need to be able to spot a bad business partner before incorporating your company. Trying to shake a lazy or overly negative business partner once everything’s been signed off can be incredibly difficult –– and could mean the end of your startup business entirely.
Effective communication is absolutely essential to your business’ success. Your business partner doesn’t necessarily need to be your polar opposite, but they should be the Yin to your Yang. A good partnership and a strong team will help you establish a way of working that means you make up for each others’ weaknesses, not exacerbate them.
It’s important to network and find out who else is out there –– you might find a great business partner or an incredible new hire just by putting yourself in the right place at the right time.
- Poor management of your business’ finances
Overspending can make your business unsustainable. If your product costs too much to make or your service is too expensive to run, your capital will be drained and your business will go into debt. Underspending can also lead to problems. If you aren’t able to invest in the right materials, software development or working spaces, your returns will quickly diminish.
If your expenses are running high, figure out ways to save money on things that are costing you a lot. Office spaces account for a sizable portion of a businesses’ outgoings, so consider a more flexible approach to your work –– it could save you thousands.
Even if you’ve got everything right up to the point of launching your business, trying to do too much can eventually lead to burnout. Looking after your own physical and psychological well being might take a backseat if you’re laser-focused on success. But in the long run, taking care of yourself will make you a lot happier and much more productive.
If your startup business is expanding, you’ll probably need to bring on more people to manage a growing workload or hire new talent to adapt to new challenges. Working in a flexible working environment allows you to interact with other like-minded people every day.
Why Coworking Spaces Can Help Your Business
If you’ve got a good idea, it’s time to get to work. There’s a lot to think about, emails to send and a lot of planning to undertake. With so much work to do, it can become pretty all-consuming. Coworking spaces encourage positive working practices, such as:
- Managing your time efficiently
In our “always-on” culture, it’s tempting to try and work every waking hour to make your business successful. While your hard work should pay off, working all the time without respite can create a seemingly never-ending loop of frustration and inefficiency, spelling disaster for your company. Burnout can have a huge negative impact on your mental health, as well as your business, so it’s incredibly important to be mindful of when, where and how you work.
- Having a proper workspace
Working in a dedicated workspace with all the necessary equipment, resources and refreshments around you will make you more productive. Working from your kitchen table or bed can strain your neck and back, as well as blurring the lines between your work and your personal life. Creating structure around your work hours will help map out your business’ progress towards your ultimate goals, as well as breaking the feedback loop that could lead to burnout.
- Encouraging collaborative work and fostering creativity
Being in the same, uninspiring place for hours on end can destroy your creativity. Having the right space to work can bring about new ideas. Breaking up your work by chatting with friendly staff members, grabbing a hot coffee or taking a walk around the city can give you a huge boost. Plus, giving your eyes a rest from staring at screens for long, uninterrupted periods will help you reduce eye strain.
Are Coworking Spaces the Answer?
Creating your own business can be an amazing journey. You’ll learn so much about yourself and your industry, make new connections and enjoy sharing your carefully crafted ideas with the world. But, it’s not without its drawbacks. Working long hours can take its toll on your mental and physical well being, which is why it’s important to cultivate an effective approach to your work, so you don’t lose focus.
With affordable prices, smaller commitments, convenient locations and 24/7 access, working on your dream doesn’t have to be a chore. We’ll help you make your business a success with flexible working arrangements, stunning indoor spaces and as many coffees as you can muster. Consider using a flexible coworking space to help grow your startup business and make something amazing today.
Do you need somewhere you can work on your startup business? You’ll be right at home at The Brew. Check out our flexible working packages today.