How to overcome losses in the early stages of your startup

How to overcome losses in the early stages of your startup

April 30, 2014 Admin 0Comment

Small Business Administration’s statistics revealed that out of ten new employer establishments. Seven survive at least two years and 51 percent survive at least five years. During the early stages of the startup it is difficult to determine the costs involved in setting up and managing the business. It is highly unlikely to earn revenues during the early stages of any business. Besides, a lot of funds are required for product development, growth etc. Most of the entrepreneurs overlook the costs involved in setting up a business and therefore fails. An insufficient funding is the most common mistake that most of the failed businesses did.

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To overcome such situations here are few points that will help you prevent losses during the early stages of your startup:

  • A well defined business plan for at least two years from the starting of the business. The plan must include where you want your business to go and all the business strategies to reach over there.
  • A well developed business plan tells you all the money required for your startup and thus you will easily get an idea about the amount of funding you require.
  • Doing a proper market analysis before launching your product is very essential before starting up your business. Keep a track of your target audience, why people want to buy from you and how will you meet their expectations.
  • There might be other businesses serving the same needs to people as yours. To build your name amongst them you need to be a lot different from them. Do all the research finding out what others who are having the same business are doing? And plan out a whole new strategy of how you can be different from them.
  • Proper marketing strategy is very important. A well funded, well grown startup is never going to flourish if it does not reach potential customers. Marketing is the most essential element for the startup businesses to gain profits.