Is Your Startup Built With Sustainability In Mind?

Regardless of the industry you’re in, launching a startup business is an incredibly exciting prospect. However, the harsh reality is that the number of failed ventures easily outweighs the number of success stories. One of the chief reasons for this is that the vast majority of new companies are focused solely on the immediate future rather than long-term stability.

While there is no doubt that short-term success provides the foundations on which to build upon, keeping one eye firmly on the long game is essential. With so many contributing factors to consider, be sure to use the following questions for guidance. When you do, keeping your venture on the right track should become far more likely.

Are The Companies Finances In Order?

Very few startups are in a position to start turning a profit from day one. As the old saying goes: you have to spend money to make money. Sadly, running out of funds before reaching the point of profitability is one of the most common reasons for business failure. Therefore, knowing your startup burn rate is an essential assignment. This calculation can help you maintain control of your cashflow.

Every business decision should be made with financial implications in mind. While the pros and cons of bulk purchases should be judged on their individual merits, taking out longer contracts on energy rates and insurance is advised. If the worst case scenario occurs and the business dissolves, those agreements will become void anyway. Most importantly, though, all projections should be honest and transparent.

Do You Have A Winning Team Of Employees?

Does The Company Know Its Place In The Market?

Only a select handful of businesses can claim to boast a universal appeal, which is why your startup needs to pinpoint its place in the market ASAP. While focusing on a niche audience may feel as though you are limiting the potential client base, the truth is that the direction should result in far greater conversion rates. In turn, this should lead to far greater ROIs in virtually every aspect, ultimately leading to increased turnover and profits.

Thanks to online selling, even niche products can become big sellers. Nonetheless, this is only possible when the content reaches those interested parties and resonates with them in an effective manner. The possibilities are greater than ever, but so is the competition. If you don’t want to lose customers to your competitors, providing the best service should be top of the agenda. Tailoring ideas to your niche is vital.

Is The Venture Designed For Repeat Custom?

Securing the initial converted sale is a major breakthrough, but you can’t expect to keep winning new clients indefinitely. Turning existing customers into repeat customers is the true key to sustainability, and should be a priority for all. With this in mind, calculating the customer lifetime value is more important than the value of one sale alone. When each consumer brings more value, you will be destined to thrive.

Furthermore, repeat customs are happy customers by definition. They can subsequently play a huge role in the growth of your business via affiliate schemes, referrals, testimonials, and spreading the word. Give them extra value through special offers and regular communication for maximum results. After all, all clients love to feel appreciated and as though they are more than ‘just customers’. Embrace it.

Do You Truly Appreciate The Competition?

In many ways, focusing solely on your venture is a great view to take. Then again, being aware of what your competitors are doing is vital as you look to stay ahead of the game. If they start using the latest video marketing techniques, for example, they could steal your customers. Likewise, an appreciation of their product and services lets you think about your USP and how it can be promoted for the best outcomes.

Getting ahead of the competition is easy, but staying there is what will turn the startup into a sustained business model. Market research and analysis will play into your hands, especially when combined with an analysis of your own ideas. In a data-centric world where many metrics can be used, there’s no excuse for falling short here. As the old phrase goes: keeps your friends close and your enemies closer.

Does The Brand Culture Inspire Positivity?

Branding is an important aspect of any startup, and it’s not all about snazzy logos and smart SEO strategies. Consumers need to know the people behind the brands, especially when the face-to-face interactions are minimal. This is why giving insight through social media posts and blogging can be a great way to gain their trust and resonate with them. Better still, it doesn’t have to be focused on product promotion.

Sponsoring a local charity or organizing an event to promote awareness of a cause can be very useful. Another option is to go green with better energy solutions and packaging materials. When the operation is sustainable, it can encourage sustainability for the business too. When added to the personal benefits gained from removing any sense of guilt, this is a key factor as you build a business set for the future.

Is The Business Suitably Protected?

Building and maintaining a successful business is never easy, but it will become infinitely harder if you allow outside influences to disrupt your progress. The harsh reality is that the dangers are greater than ever. Prevention is the best form of protection by far, and is the only way to keep your venture on the right track. Even if you don’t come under attack, the knowledge that your venture is in a vulnerable position will play on your mind.

Security should cover your online presence as well as physical assets. CCTV, alarms, strong passwords, antivirus software, web host protection, and a range of other features should be added. You also need to protect the business against accidents through the right business insurance while  protecting intellectual property with copyright. Failure in any of these aspects could lead to damaged reputations that are hard to bounce back from.

Does The Company Perform In A Time-Efficient Manner?

Ensuring that the business is built to utilize its capital in the right way is vital. Still, you must not forget that time is the most valuable resource. Therefore, taking the necessary steps to increase the speed of productivity without compromising quality is essential. Automation through modern tech and software is an ideal solution while collaborations through cloud computing is vital too. If nothing else, it opens the door to new possibilities.

In addition to boosting the production speeds, a focus on good time management will aid the customer experience. This is particularly true when using automated order fulfillment through software or outsourced companies. When your business works in a fast and efficient manner, there is no doubt that it will gain better long-term results than if you allow standard to slip. Getting it right now is far easier than making amendments later on too.

Are You Up To The Task?

It’s very easy to sit back and blame other people for the shortcomings of your business. In reality, though, the responsibilities lie with you. While your direct tasks might not influence too much, the indirect impact of your leadership will play a central role. Investing in your management and communication skills is essential. Otherwise, your mistakes will filter down throughout the venture to cause major problems.

A little humility goes a long way in business too. Learning to accept that help is necessary in many aspects of the operation can lead you to far greater results. This may even mean entering the startup with a partner or associate. Many of the best companies across multiple industries were started as joint ventures. Two heads are better than one, and focusing on your strengths and avoiding the weak points can pay dividends.

Is A Long-Term Vision In Place?

On the one hand, it’s important to remember that there is nothing wrong with deviating from the planned pathway. On the other hand, establishing a business that has no room for scalability would be madness. Therefore, the long-term plan for your business should include projections for when it may be possible to franchise the venture, open new stores, or increase the online turnover. Stagnation is not an option.

Even ideas like launching new lines and hiring more outsourced staff to increase productivity can work wonders. Aside from incentivizing your team, those new innovations and continued progress keep clients interested. When you fall victim to standing still, competitors will find a way to seize the advantage. Conversely, when you build upon the initial triumphs in the right manner, years of success will follow.

This is a contributed post.