Startups have raised and died, and the phenomenon is no longer a surprise. It signifies that today, starting a business is easy, but the maintenance requires much greater efforts.
Going solo is a bad move
Involving more people means more ideas and more networks. If a problem arises and one person gets stuck, the other can still provide a solution derived from a different angle. Also, the division of labor means less burden and leads to more manageability. Then why not employing this principle when establishing a business, by hiring a co-CEO.
However, the division of power should be clear. Co-CEO should not have the same power as the CEO, and the major decisions should be reserved only for him/her. And as mentioned before, having a co-CEO is to have a person who can provide different perspectives. So, a co-CEO is best equipped with additional expertise that the CEO does not have. For example, if you are the expert in supply management then your co-CEO in online marketing.
Networking and Marketing
Networking should come before marketing and a good company nurture its network since the very beginning until the time the company ceases to exist.
From networking, you can foresee the condition of the market demand. Most start-ups fail because their products do not meet enough needs in the available market. The old optimism that says “create your market” may sound encouraging, but in reality, if you do not have enough resources (which is the typical condition of a start-up), marketing campaigns with hope to raise new demand will cost you enormously and drain your pocket.
Networking with the people in the business-hood will give you a picture how to start your business slowly but surely. And do not forget to learn from others’ mistake.
From networking comes marketing. Armed with the knowledge of your fellow businessman, now you can begin to launch marketing campaigns of your own. Online-marketing is the oxygen of startup. Knowledge of SEO and the agency for search engine optimization; marketing on social media, and online security; all are the strategies to nourish your business.
The second cause of start-up failure is running out cash. Focusing on production, operational, and maintenance is a good thing, but tends to overlook the bubbling expense.
Every start-up needs to be aware of their possible downturn. For example, try to calculate if the sale decline happens for two years, and how much money is going to spill out from your stash. That is the least amount of money you need to have as your reserve.