After five years of running a startup, I’ve realized that it’s common to hear the daunting statistic that “90 percent of tech startups fail.” However, I found it more constructive to view my startup as any other small business venture. In fact, the U.S. Bureau of Labor Statistics suggests that small businesses have a 70 percent three-year survival rate, which is a far less intimidating figure. While attending an Inc. 5000 event and conversing with attendees representing some of the fastest-growing American companies, I identified four key strategies to help position your business for survival and growth.
React to “No”:
Entrepreneurs often share a similar experience: encountering resistance, being told “no,” and not accepting defeat. Instead, they transform that “no” into the catalyst for launching a new company or introducing a game-changing product. “No” becomes a starting point for action rather than an endpoint. For me, this transformation gave rise to the concept of the anti-agency, an agency dedicated to innovative user experiences and disruptive design thinking. Today, I always pay attention to the potential hidden within the word “no.” It often hints at the next steps to take.
Grow Smarter:
While growth is generally seen as a positive metric, it can be deceptive. Doubling our workforce in the last 18 months has been a significant milestone for us, but I remain cautious about growth. One effective approach to growing smartly is to start by hiring contractors, converting them to full-time employees as the business’s needs dictate. This flexible model allows for gradual transitions to full-time positions. However, my real secret has been to seize growth opportunities when they align with our brand and promise great potential impact. Growing smarter means making strategic choices that are aligned with your long-term goals.
Keep Operations Sharp:
Maintaining a proficient operations team is essential for establishing and enforcing protocols. These experts know whether you can afford to hire more staff or expand office space without overextending the business financially. While dreaming and innovation are essential, you must also focus on the fundamental aspects of human resources and operations. Having a well-functioning special ops team is equally crucial. They excel at their roles and require minimal supervision, allowing you to focus on your strengths. Trusting this team to respond swiftly to changes and execute tasks effectively can save you both time and money.
Empower Employees:
Creating an employee handbook is a fundamental necessity. It should cover legalities without being overly formal. This guide should read like an insider’s manual to how your company operates. To empower your employees, consider Rule No 1: “Use your best judgment.” Encourage them to innovate and rely on their instincts, not just conventional norms. Fostering confidence through mentoring programs by pairing new hires with seasoned employees for on-the-job training is also essential. Sink or swim should not be the approach if your goal is growth and longevity.
In the face of daunting odds, your company can be best positioned for survival and growth by reacting positively to the word “no,” making strategic growth decisions, maintaining efficient operations, and empowering your employees. While running a business may not always be enjoyable, focus on what you can control—your choices—and strive to embrace and learn from them. Regrets can be far more costly than the challenges you face.
