If you’re an ambitious entrepreneur and you’re thinking about taking the plunge and setting up your own startup, there’s every chance that you’ve come across some pretty scary statistics. It’s no secret that around 90 percent of new businesses fail. This figure alone would be enough to send many running for the hills, but if you’re determined to beat the odds, there are ways of succeeding. Here are some effective measures to employ to give your startup the best shot.

Balancing the books

When you start a business, it’s all too easy to focus on sales. If you’re getting orders, you may think that things are going well. It’s true that bringing money in is a positive sign, but this is not the only consideration to bear in mind. The key to success is generating profits, and to do this, you have to make more than you spend. Focus on the numbers from the outset and don’t get carried away with sales figures. You could sell hundreds of dollars worth of stock every day, but if your margins aren’t right, there’s still a high risk of failure. You have to balance the books and make sure that strong sales figures aren’t marred by overspending.

Image courtesy of https://pixabay.com/en/work-stressed-accounts-2005640/

Prioritizing prevention

Any doctor will tell you that prevention is better than cure, but this is not a concept that is restricted to medicine. If you can prevent potential issues in business, you stand a much better chance of staying afloat than you would if you tried to pick up the pieces after hitting a hurdle. Consider options like seeking legal advice when dealing with employee disputes, investing in managed IT services and securing business premises. It’s always best to be slightly neurotic when it comes to protection and prevention. Think about what could happen and take steps to lower the risk. Even if you can’t prevent an issue, being prepared could make all the difference.

Image credit https://www.flickr.com/photos/philwolff/436315335

Researching the market

One of the most common reasons for failure is trying to make waves in a pool that is already packed. If you’ve got an idea for a new product, do your research first. Is there a demand? Does it have a USP? How much will people be willing to pay for it? Think about what consumers want, rather than just what you think might sell. It’s so important to do the groundwork before you get in too deep and realize that your idea doesn’t have a place in the market. There are so many ways you can obtain useful information. Organize some focus groups, send out surveys and meet with buyers. Take comments on board. If you don’t listen, there’s no point in doing any research in the first place.

Image source: https://www.flickr.com/photos/kl/8557667690

There’s nothing remotely reassuring about reading statistics that indicate that the vast majority of new businesses fail. However, it’s not all doom and gloom. There are countless success stories out there, and if you prepare well, you know what people want, and you have a firm grip on the figures, there’s no reason why you can’t beat the odds.