Startup failure is a common thing in the current scenario. Since the success rate of a startup is unpredictable, many consider it safe to stay away from the idea. According to certain studies, only half of the new companies survive for at least five years.
The main reasons for startup failure are found to be shortage of cash and difficulty to find investors among many others. It would do good to examine what are the actual causes that lead companies to failure. Take a look at these signs that indicate that your company is up to failure.
Employees Leave the Company
Large number of employees leaving the company is not a good sign. Studies say that high rate of employee turnover affects the performance of the business which in turn affects the profit and customer service. If you find that people don’t stick to your business for long, then it could be because they don’t believe in you and your company. And this is a sure shot sign that your company is sinking.
No Boss Around
A startup should have exactly one boss, not more. If you have started your business with a partner, it is good because you get more ideas and will be able to share the responsibilities. But experiences show that shared leadership is almost like no leadership. Within no time, confusion starts building up and leadership weakens. The lack of a perfect leader starts showing in every aspect of your business. Though in rare cases multiple leaders become beneficial for companies, this is not very common in a world where everyone craves for power.
Longer Periods of Wait
Today, people look at products that work in the first try. They do not like waiting for months to find out if the product is good. This is very common in a fast moving world. Everyone wants to learn about your product or service as soon as possible so that there is no time waste. If something does not work immediately, they are not ready to invest their time and money in it. There are thousands of businesses out there that offer better products and services. So, your company is not considered good if it does not suit this criterion.
Late with Payroll
Delaying the payroll is an obvious turnoff for employees. If you feel that this is a part of running a business, you are wrong. Unlike before, it does not work that way. Skipping the payment once will ring a bell in people’s minds and they will be more alert. It is seen that once you make this mistake, it is likely to happen again. So, never put off salaries which could drown your business deeper.
You are Short of Answers
Many entrepreneurs say that at one point or the other, they have felt that they do not have definite answers to questions pertaining to their businesses. Some mornings feel so out of sync that they cannot figure out why they started the business in the first place. Owning a startup can be stressful with all the responsibilities to be handled by you. There are times when you feel that regular employment was more secure and rewarding. If you have this thought already, find out why.
If you can associate any of these warning signs with your company, then it is time to analyze what is happening. Sometimes, it could just be a hindrance in your path to success. If it is not, better rethink about your business. Follow your heart and decide what is best for you.
