Starting a new business is a daunting task and many startups do not last. It is devastating to sink time, effort, and large sums of money into a business only to watch it fail. As a firm that specializes in small business start up consulting, Illumination Consulting has been able to save many new businesses from this unfortunate fate. Knowing what to avoid is half the battle when starting a business so learn the most common pitfalls for start ups and let us help your business avoid them.
The top reason that most startups fail is not lack of money but lack of ownership. With only one founder, a new company is difficult to run and is not likely to succeed. The stress alone can cause the sole founder to throw in the towel and chalk the venture up as a failed effort. With a group of founders on board, tasks can be divided so no single person bears the brunt.
Many start ups die because their founders fail to consider whether the product or service has a receptive audience. The item must be unique enough to attract paying customers. This is another area where having multiple founders comes in handy. A group of people can brainstorm and refine product or service ideas and test these with target markets more quickly and easily than one person can.
Though running out of money might seem like the most common reason that a startup fails, it is actually the third most common. Many startups run out of cash when they are nearly off the ground. Failing to raise enough money during the final round of fundraising and failing to plan for a sufficient rollout period are two common culprits.
Illumination Consulting helps start ups avoid these pitfalls so these businesses succeed when others fail. There is nothing wrong with asking for assistance especially when starting a business. A good start up consultant becomes a member of the team, offering suggestions and assistance while leaving the ultimate decisions to the business founders.
Small business start up consulting services include strategy development, planning, establishing the legal and operational framework of the business, and more. Illumination Consulting professionals even help start ups develop an online presence and build the momentum that these new businesses need to be successful. A good consultant answers all of the questions that start ups face and helps the founders avoid the most common reasons for new business failure.
*Photo Courtesy of Xataka via Creative Commons License