As we enter a new year more and more startups will join the ring, each competing for success in an increasingly convoluted industry. Statistics on startup success make for a concerning read. Where it was once previously claimed that 8 in 10 new companies would fail, in 2015 this figure rose to just 90%.
As the chance of survival slims, analysts also warn of the dangers of a 2016 global recession. The U.S. economic recovery has been in general strong, with slowing declining unemployment rates, and a strengthening dollar. However, a fast expansion, fueled with large cash injections could soon begin to wobble.
In the U.S. 99.7% of all business are small, roughly half the world’s workforce works for small business, and almost two thirds of new jobs come from these businesses, according to a recent report from Sage. It has also been estimated that almost 140,000 startups are created every day.
Transforming the initial startup solution into a feasible business is not easy. Planning business growth based on market demands that guarantee longevity is paramount.
Entrepreneurs that choose this time to launch a new business, are by nature fearless. However a few tips from the founders that have stumbled, fallen and succeeded are essential reading for those daring to enter the jungle. Four startup founders share their advice.
Create A Business, Not A Startup
“The truth is that most startups aren’t built to be sustainable businesses. There’s a substantial difference between the initial stage of startups, identifying a problem and coming up with a solution to that problem, to the second phase of development. That stage entails recruit, training, planning, and timely execution, within a set budget, backed by a monetization plan to allow a business to grow and expand organically (or at least become attractive enough to raise more funds).