Success in business starts early on before anything begins to take shape
Launching a breakthrough idea is a defining moment in one’s career.
Not only is it an exciting time when passions are being turned into profitable opportunities, it’s a vulnerable time when skills, patience, and egos are put to the test. All entrepreneurs know the intimidating statistic about how half of all startups fail within the first four years.
Being on the winning side of that metric is no easy task. There will be all kinds of obstacles standing in your way – some will be out of your control.
Before you even start putting the wheels in motion, there are many (seemingly) small factors that will make a world of difference in the long run. Here are three bits of advice all entrepreneurs should keep in mind.
1. Make Data-Driven Hiring Decisions
Hiring has been, and always will be, one of the most difficult parts of running a business. The people you surround yourself with early on will play a huge role in how the company develops.
The cost of turnover is detrimental to business success. Studies have found that turnover cost for a mid-range salaried employee is typically around 20%. So, if you are paying someone US$50,000, the total cost of replacing them would be in the ballpark of US$10,000.
When you are starting a business, EVERY single dollar matters. Making a bad hire is like shooting yourself in the foot. That being said, incorporating big data into your hiring process can be a saving grace, especially for startups.
Data-driven resources like Harver offer a more precise way to recruit. The “smart” AI-based tool gives applicants a refined way to apply for a job opening that immerses them in the finer details of what the role encompasses. Then, an algorithm runs tests on real-life scenarios to gauge their personality traits, intelligence, and problem solving abilities.
The end result gives businesses a more insightful way to narrow down the best options where both the employer and the candidate can determine if they’re a good fit for each other.
It’s important for entrepreneurs to note that not ALL hires will work out. The key is finding ways to eliminate as much guesswork as possible prior to bringing people onboard.
Also read: From validation to profitability, here are 5 tips for launching a saleable product
2. Implement a Growth-Oriented System Early
In the early stages of running a business, an exact system for the day-to-day may not seem completely necessary. While loose spreadsheets and email may work while operations are small, the earlier you establish a big picture rhythm, the better.
Keep in mind, success starts on the inside. If you want to be an attractive destination for top-tier talent, you need to have an airtight system in place that immediately says you are an organised company. The effects of poor organisation in the workplace cost more than just money and missed opportunities. It impedes professional growth for everyone involved, kills productivity, and can even wreak havoc on both mental and physical health.
Fortunately, there are plenty of awesome task management tools designed with business growth in mind. Collaboration software like Asana is free for up to 15 users, making it ideal for a startup. The program enables you to keep track of every single detail within projects from start to finish, with file sharing, timeline tracking, and communication capabilities available on a unified platform.
The tactics and organisational practices you establish have a huge impact on how your company grows. Even if it’s just you, and maybe one other person starting out, adopting a reliable system is perhaps the best investment you can make.
3. Maintain a Student Mindset
When you come from humble beginnings, a taste of success can be just as dangerous as it is exciting. As you begin to hit rapid growth, it can be very, very tempting to want to do things like reinvesting your revenue in other ventures.
While this can be a fantastic idea for ongoing growth, it all depends on your strategy and mindset. Truth be told, the prospect of seeing your hard work turn into dollar signs can make you feel invincible. This is where the danger occurs. When this is your mindset, it’s easy to be close-minded to other opinions and advice within your organisation. Sometimes, you simply need to understand that you do not know everything.
Mistakes will happen throughout running a business. Some are bigger than others. Ego-driven mistakes are by far the worst (and most avoidable) ones to commit. With every new endeavor in your journey, always be open new ideas and perspectives. Be a learner.
Once you lose the student mindset in business, growth is impossible.
In Conclusion
Being an entrepreneur is one of the most satisfying professions in the world. Engineering business operations will put everything you’ve learned throughout your life to the test. Some experiences will be great. Others, not so great.
Success in business starts early on before anything begins to take shape. Nailing down your fundamental processes, systems, and mindset in the beginning stages is the best thing you can do to set yourself up for greatness.
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