How to Manage and Grow a Startup?
A startup has the potential to grow quickly but only if it is managed well. More than one third startups fail each year because they are allowed to flounder in the beginning.
So how can potentially successful startups become successful? The key is management and particularly the ability to adapt and scale quickly.? Here are some tips that can help:
Don?t do it for the Money
This might sound strange, but it?s true. While one of your aims is to make money, your main goal should be to create a valuable product or service. Money should not be your motivation, since this aim alone may be frustrating in the beginning. If you stick to the former, you may have a hard time justifying the hard work required.
Start a business because you are passionate about it. This will reinforce the passion you had in the beginning and you will not forget why you started in the first place. In other words, you will believe in the value you can create which is a solid foundation for any business.
Keep Business and Personal Finances Separate
It is absolutely crucial that you keep your personal and business finances completely separate. Mixing the two will leave you with neither in the end.
A good way to tell if you are doing that successfully is to see if you are getting a good salary at the end. You should have enough left after paying the bills and buying office essentials to retain some of those profits for your personal use.
Speaking of personal finances, manage these like you would your business finances. Creating a forecast for them will go a long way in helping you stick to a budget. You have to understand your expenses and especially how much you spend and cash inflows. This includes figuring out how you can increase that personal revenue stream.
Build a Management Team
A business is only as good as the people managing it. Unfortunately, many startup owners take ages to create a leadership team. As your business grows, you will need to add a management level with either old or new staff.
However, this is where things get a bit tricky. Should you promote older employees or hire someone who has more management experience? Even if the former have put in a lot of effort into the business, they may not be qualified to be managers.
In fact, they might end up demotivating their team and new hires who are rising stars. This is why most business owners take too long to make such decisions leading to scaling issues and growing challenges.
The key to managing and growing a startup is consistency and keeping your finances in check. As a business owner, you need to be proactive and improve communication across your company to ensure these conditions are met. Hiring a bookkeeping service to manage your finances for you can go a long way in clearing clutter and ensuring you have time to focus on your core operations.