When it comes to starting a business, there are a lot of issues no one talks about. Sure, everyone will tell you that you need to have an idea, that you need to make a business plan and that you need to have enough money but these three tips alone aren’t enough. On the other hand, there are some other factors that could undo your business in a matter of weeks or months, yet which no one even dares to mention. Here are five of them.
1. Validating your idea
The first thing you need to know is that just because something sounds like a million-dollar idea, it doesn’t mean that it actually is one. For instance, the Uber idea was an outstanding one, seeing as how it solved the situation of urban commute in a new and more convenient way. On the other hand, the app was supposed to act as a GPS-based chat and Tinder for dogs were both doomed to fail from the very start. While one of the above-mentioned eventually grew into a major corporation and the other failed, to their creators all three probably seemed equally brilliant.
2. Providing work capital
In an ideal world, you would have enough money to launch a company but you will then keep it running by using your profits. Unfortunately, what a lot of people won’t tell you is that it takes form 6 months to 2 years for a startup to become self-sustainable. In the meantime, you will have to find a way to obtain enough means to keep your company afloat. Here, most people opt for taking another loan.
The greatest problem with taking a new loan lies in the fact that most people ruin their credit score in order to launch their company in the first place. While improving your credit score may seem as the only way out of this situation, you might also want to explore the option of looking for a bad credit personal loan, which some lenders are more than happy to provide.
3. Choosing the right partners
Another thing that nobody mentions is that even if you have a common interest with a person, it doesn’t mean that you have to share the same vision. Sure, both of you want to get rich and dominate your industry but how do you get there? Having a partner whose short-term goals different from yours can turn every single decision-making process into a ruthless battle. Needless to say, this rarely ends well.
4. Believing you are all-powerful
As a person in charge, you might fall into the trap of taking on more responsibilities than you can actually handle. This might cause burnout, get estrangement from your friends and family and it might even ruin your life in the long-run. Keep in mind that if your business sets off, this is something you will be doing for years and decades to come. Therefore, make sure that you set a professional pace you know you can keep up with.
5. Success can be as dangerous as failure
At the end of the day, with 9 out of 10 startups failing within the first five years, it seems like no one prepares for success anymore. However, what about a scenario in which everything goes according to plan? What if your business ends up being a one-in-a-million success story? Where do you go from there? The way in which you solve the issue of scalability, the increase in workload and rapid capacity expansion are all extremely important. Failing to respond accordingly to these tasks can, therefore, be incredibly dangerous.
In the last section, we mentioned the fact that most startups never make it. Well, knowing why this happens might just be the first step in being able to avoid this kind of future. In order to get there, however, you need to start listening to all the unpleasant truths that most future entrepreneurs optimistically dismiss. While some may call this kind of an approach pessimistic, others just name it for what it is – being prepared for the worst-case scenario. At the end of the day, being ready for what lies ahead is always good.
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