While the common ‘truth’ about 90% of startups failing is grossly overrated (Fortune) it’s true that many of these businesses don’t survive past the 5-year mark. One of the main reasons for that is the lack of necessary progress that will take the company to the next level. Making a few improvements, like website expansion, attracting new investors, or upgrading your management, can help growing your business into a solid presence on the market.
4 Improvements and Tips for Growing Business from a Startup
1. Attract new investors
Over 29% of startups fail because they run out of money. When you start a business, you’re looking for financing, but it’s essential that you don’t stop there. In fact, it would be easier to attract investors now that you have some success to show them and a better understanding of where your business should go from here.
You don’t have to appeal to a bank for another loan as this will only put you at more financial risk. Instead focus on crowdfunding using platforms like Indiegogo, Kickstarter, or CircleUp. Consider also looking for angel investors and be sure to provide them with your startup performance reports and an exact plan of improvements you’ll use their money for.
2. Move to a better hosting
According to data from Kissmetrics, over 50% of internet users will abandon a website that takes over 3 seconds to load. If it’s an eCommerce site, 79% of people who experience problems with it loading will abandon their carts and nearly half of them will go as far as to advise their friends against shopping there. Ultimately, any website performance issues can turn the word of mouth, one of the most powerful marketing tools, against your business.
As your startup grows, moving to a better hosting or simply changing the service package from a shared to dedicated one is a must. To ensure the best possible performance look for the top web hosts. This improvement will not only reduce the risk of crashes caused by traffic surges and boost webpage loading speeds. You can also use it as an opportunity to add a few upgrades to the website. For example, boosting design with better visuals and adding more video content. You should also add a few security measures to protect your business and customers.
3. Upgrade your management on every level
Growing a business from a startup is all about making your organization more complex and advanced. As adding new products/services to your catalogs is the definite next step in company development, you’ll need better management solutions to control the entire process.
You can improve management in many ways, starting with hiring better-qualified professionals to ‘ride herd’ on your employees to using better project management software. You also should consider educating your current managers to improve their qualifications. Sending them to seminars or webinars as well as courses will provide them with the knowledge they can use for boosting your entire business.
Educating your employees to keep them at the top of their specialties is always a worthy investment. This will help you evaluate them better and build a more efficient team. As a bad team is the reason of 23% of startup failures, this improvement should be on your ‘mandatory’ list.
4. Don’t get distracted
When introducing improvements that will help growing your business from a startup to a big company, it’s essential to take it one step at a time. This policy is especially important when it comes to introducing new products and exploring new channels for sales or acquisitions.
Dispersing your attention to several projects at once will reduce the efficiency of your team and can lead to seriously damaging mistakes. Instead you should have your efforts focused on every improvement so you can polish and test it to perfection. Once your business grows and you can hire more people, you’ll be able to expand your ambitions for new projects.