You’ve probably already read somewhere that only 10% of startups manage to survive their first year. However, this simply isn’t true. Online authors and contributors often recycle something they’ve read somewhere without checking it. Therefore, if you’re a young entrepreneur-to-be, don’t take those fatal predictions too seriously. On the contrary, believe in your skills and knowledge, but also do some research on more and less lucrative niches for a new startup particularly on marketing and branding.
As shown in a report published by the U.S. Bureau of Labor Statistics, the startup survival rate largely depends on the niche. Having this information could be of crucial importance for a new business owner.
If you do your homework and analyze the situation in different niches, it could make you change your mind about the field you’d like to work in. For instance, a construction engineer wants to launch a full-scale home renovation startup.
However, if they notice that the startup survival rate in this field is low, they can take a more moderate approach. As an alternative, they can direct their startup towards specializing for only one segment of this field, such as bathroom maintenance.
According to core corporate branding strategy, the choice of the niche will definitely play an important role in making your startup survive the first year and become a well-known brand.
Reliable budget backup
People who’ve never plucked up courage to launch a private business often wonder how startup owners collect assets at the beginning. Truth be told, it’s no bed of roses, but a rocky road full of unexpected bumps.
Unless you’ve saved or inherited some assets, you won’t be able to start working without a substantial loan. So, first of all, write a business plan and talk to the officials in your bank. They can help you get a clearer picture of the budget you will need.
Secondly, try launching an online crowdfunding campaign. If your business will deal with ecological or social issues, you might collect a surprising sum of money. The online community is sensitive to those affairs.
Apart from that, once you start putting your business ideas to practice, you’ll already have an online audience that recognizes your brand – a vital advantage for a startup.
Nevertheless, stay away from obscure online lenders with incredibly affordable loans, since they might trick you and nip your brand in the bud.
Connect with large players
Startup owners are often excessively ambitious. They get carried away by the thought of running their own business. However, the reality check can sometimes be brutal. Therefore, if you see that your business is on a slippery slope, you need to prepare an exit strategy. One of the smartest ways to keep your business alive is to establish a collaboration with a larger business player.
Depending on how well you’ve developed your enterprise, you two can either become partners or you can become a minority shareholder. While it will reduce your influence on the decisions, it will help your young brand survive.
marketing and branding companies
What’s more, you can change your business identity, and turn over a new leaf. Going for one of those catchy brand names will give an additional boost to your struggling business and breathe new life into your future efforts. By joining forces with a stronger business player, you could rebuild the startup and help it live through its first year.
At the end
Even if you plan your every move by the book, your startup might experience serious problems. The key thing here is to make prompt decisions and adapt to the current situation in your niche. Be it going for a loan or rebranding your business, do everything you can to save it. Such periods need to be treated as inevitable stages of natural business development. When those issues are resolved, your startup might regain its initial power and become a renowned business brand. I personally recommend each and every entrepreneur to go through article at least once before consulting any corporate branding agency.
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