Starting any kind of new business is undeniably expensive. Trying to fill a hole in a newly emerging marketplace even more so. In our constantly evolving digital world, new market inefficiencies are constantly popping up, and every entrepreneur this side of Timbuktu (understandably!) wants in on the action. Unfortunately, many of these intelligent and well-meaning women and men will find their start-ups sinking within the first year.
Whether due to running out of money, a founder leaving, or an inability to motivate ground-level employees, the reasons start-ups fail are endless. Despite 1.7 billion dollars in funding, these ten start-ups all went the way of the dodo last year. Let’s look at a few strategies you can implement to ensure your start-up isn’t one of them.
Get An Out-Of-The-Way Office
It’s obviously desirable to have office space downtown or in a new and happening area. You want to rub shoulders with like-minded people. While networking is obviously important for any new business, it doesn’t mean you need to be paying premium rent for your office. You can find much more affordable office spaces in rural and suburban neighborhoods. Paying ludicrous, downtown rental prices, especially if you’re starting up in a big city, often means death for a new business. Find an office in an out-of-the-way area that’s easy to reach by transit and you’ll be laughing all the way to the bank. Simply keep your ear to the track for industry events and you’ll find plenty of opportunities to schmooze with downtown big-wigs.
Outsource Legal Help
We all know that lawyers are pricey, especially if you plan to retain full-time legal help. Here’s a tip: don’t! There are plenty of legal recruitment firms that provide top-tier service for a fraction of the cost of a traditional law firm. These firms outsource legal aid to clients based on their specific needs, only for as long as they are required. The benefits of legal process outsourcing are numerous. If you require a lawyer for a week, they’ll provide that; if you need one for six months, they’ve got you covered, too. And you’ll only pay for the help you get!
Buy An Office Espresso Machine
Dead serious. Companies that go on regular coffee runs can expect to spend hundreds of dollars a year on coffee – per employee! Even if the employees split the cost amongst themselves, that’s just transferring the steep cost of that java onto them, which is bad for morale. Invest in a nice espresso or cappuccino machine. Even if the cost is high at first, you’ll save a lot of money in the long run.
One of the many reasons start-ups fail is that one its crucial members – usually one of the founders – loses interests or starts splitting their attention between the start-up and another project, grad school, family, etc. Don’t let that happen to you. A successful start-up needs committed and focused employees – and even more committed and focused management. Keeping your eyes on the prize will not only steer the ship towards success but set an example for your employees.
The world of start-ups might seem like shark-infested waters, but there’s plenty of success to be had out there. As long as you’re focused on success and keeping your overhead low, there’s no reason that your new business shouldn’t become the next big thing!