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8 Things Startups Overlook When They Expand Their Business

8 Things Startups Overlook When They Expand Their Business

In the 21st century, millennials have been more and more inspired to build their own startups. Entrepreneurship has become the cool and trendy topic of this age.

The problem, though, is that most startups fail within three years. So, why are so many startups failing? The truth is that most startups overlook a lot of things as they expand their business, which usually leads to their demise.

Here are eight things that most startups overlook when trying to expand and grow their business.

1. The Right Employees

There is nothing more important than the people on your team. Business is a team sport, after all. If you don’t have the right players on your team, you won’t be making it to the playoffs.

“One of the things I overlooked was how important it was to hire the right people. Several times, we kept people around too long that weren’t contributing to the business.

We were much happier when we got the right people on the bus and the wrong people off. It helps set a precedent for a good company culture.” – Marcin Kleczynski, founder and CEO of Malwarebytes.

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2. Market Research

Remember your parents telling you to do your homework? It was and still is good advice, especially in the business world.

If you dive in without doing your due diligence, you can lose a lot of money or maybe even all of it.

“If your business is not competitive in your home country, problems will be magnified in all other countries. Start by visiting local retailers and watch consumers. We continually improve by honing in on the local shopping preferences.” – Philip Rooke, CEO of Spreadshirt.

3. Company Culture

Employees are attracted to companies that have a culture. It is a way for them to identify whether they will be a good fit for the company.

The quality of culture will positively or negatively affect employee retention.

“The main thing that we didn’t want to overlook is our company culture as we grew. Our strategy to not overlook this very important matter was to implement an organizational structure, we call Entrepreneur-ocracy.

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It is a corporate structure with no managers and allow employees to make critical decisions because they are empowered to do so.

Instead of managers, we have weekly team meetings that are overseen by elected moderators. By allowing managerial duties to be divided among the team members, we are on pace to save $1+ million dollars in operational expenses this year.” -Jessica Mah, CEO of inDinero.

4. Hiring The Services of Appropriate Professionals

Sometimes, startup employees will try to save money by giving more of their time to do other things. However, there are certain matters that should be left to the professionals.

“The most important thing that we overlooked was to get people that were competent in doing what they do best, specifically a CPA. I wish we hadn’t tried to do it ourselves. All we ended up doing was wasting time.

It would have taken 20 minutes for a CPA to do it. Yet, it took us 4 hours and we still weren’t doing it correctly. My advice is to reach out and ask other entrepreneurs for recommendations”, says Kim Kaupe (Co-Founder of Zinepak).

5. Internal Communication

Nothing is more important than ensuring that everyone is on the same page. Miscommunication can cost the company a great loss of time and even millions of dollars.

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“We’ve been around since 2001 and still learning how to be a global institution. The one thing that we overlooked is keeping internal communication open, clear, and flowing.

With an international organization, there are time differences and it’s really easy for people to feel disconnected. I would suggest establishing a monthly meeting for everyone to connect.” – Herman Heller, CEO of Runbook International.

6. A Contingency Plan

Most of us have been told to have a backup plan. That advice is even more pertinent in business.

If you are an expanding company, you are very likely to run out of money. You will need a contingency financing plan so you’ll know what to do if things cost more or take longer than expected.

“Being in danger of running out of money can cause huge morale problems and a big increase in employee stress.” – Ray Rothrock, CEO of Red Seal.

7. Seasoned Leadership

Everybody can’t be Lebron James. However, it will help your business greatly to have such a person with those qualities.

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“A successful startup cannot overlook the importance of having experienced leaders. Leaders who have experienced the full trajectory of a startup’s lifecycle, from garage to public trading and beyond.

The seasoned leader can increase sales, anticipate common pitfalls, and establish the startup’s culture as it expands beyond its initial creators.” – Vick Vaishnavi, CEO of Yottaa.

8. Sharing The Wealth

In this age, hourly wages are not enough anymore. Unless you are paying them an above average wage, you are going to need to offer some other incentives to keep them loyal to your company.

“Simply hiring people at minimum wage won’t keep loyal employees. It is important to incentivize your employees, giving them ownership in the vision.

When we began expanding, we hired people who were overqualified and asked them to learn the business for $10 an hour. Our incentive was to give them the opportunity to become owner operators if they stayed loyal to us.

Now, those committed employees are also stakeholders of the company.” – Justin Wetherill, CEO of uBreakiFix.

Featured photo credit: Mac (by Financial Times) via imcreator.com

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Kallen Diggs

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Last Updated on May 7, 2021

Productivity Boost: How to start your day at 5:00 AM

Productivity Boost: How to start your day at 5:00 AM

I have been an early-riser for over a year now. Monday through Friday I wake up at 5:00 AM without hitting the snooze button even once. I never take naps and rarely feel tired throughout the day. The following is my advice on how to start your day (everyday) at 5:00 AM.The idea of waking up early and starting the day at or before the sunrise is the desire of many people. Many highly successful people attribute their success, at least in part, to rising early. Early-risers have more productive mornings, get more done, and report less stress on average than “late-risers.” However, for the unaccustomed, the task of waking up at 5:00 AM can seem extremely daunting. This article will present five tips about how to physically wake up at 5:00 AM and how to get yourself mentally ready to have a productive day.

Many people simply “can’t” get up early because they are stuck in a routine. Whether this is getting to bed unnecessarily late, snoozing repetitively, or waiting until the absolute last possible moment before getting out of bed, “sleeping in” can easily consume your entire morning. The following tips will let you break the “sleeping in” routine.

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Relocate your alarm clock.

Having an alarm clock too close to your bed is the number one reason people simply cannot get up in the morning. If your alarm clock is within arms reach of your bed, or if you can turn your alarm clock off without getting out of bed, you are creating an unnecessarily difficult situation for yourself. Before I became an early-riser, there were many times that I would turn off my alarm without even waking up enough to remember turning it off. I recommend moving your alarm clock far enough away from your bed that you have to get completely out of bed to turn it off. I keep my alarm clock in the bathroom. This may not be possible for all living arrangements, however, I use my cellphone as an alarm clock and putting it in the bathroom makes perfect sense. In order to turn off my alarm I have to get completely out of bed, and since going to the restroom and taking a shower are the first two things I do everyday, keeping the alarm clock in the bathroom streamlines the start of my morning.

Scrap the snooze.

The snooze feature on all modern alarm clocks serves absolutely no constructive purpose. Don’t even try the “it helps me slowly wake up” lie. I recommend buying an alarm that does not have a snooze button. If you can’t find an alarm without a snooze button, never read the instructions so you will never know how long your snooze button lasts. Not knowing whether it waits 10 minutes or 60 minutes should be enough of a deterrent to get you to stop using it.

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Change up your buzzer

If you use the same buzzer day in and day out, you begin to develop a tolerance to the sound. The alarm clock will slowly become less effective at waking you up over time. Most newer alarm clocks will let you set a different buzzer tone for the different days of the week. If you change your buzzer frequently, you will have an easier time waking up.

Make a puzzle

If you absolutely cannot wake up without repetitive snoozing, try making a puzzle for yourself. It doesn’t take rocket science to understand that the longer your alarm is going off, the more awake you will become. Try making your alarm very difficult to turn off by putting it under the sink, putting it under the bed, or better yet, by forcing yourself to complete a puzzle to turn it off. Try putting your alarm into a combination-locked box and make yourself put in the combination in order to turn off the alarm — it’s annoying, but extremely effective!

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Get into a routine

Getting up at 5:00 AM is much easier if you are doing it Monday through Friday rather than sporadically during the week. I recommend setting an alarm once that repeats everyday. Also, going to bed at about the same time every night is an important factor to having a productive morning. Learn how much sleep you need to get in order to not feel exhausted the following day. Some people can get by on 4-6 hours while most need 7-8.

Have a reason

Make sure you have a specific reason to get up in the morning. Getting up at 5:00 AM just for the heck of it is a lot more difficult than if you are getting up early to plan your day, pay bills, go for a jog, get an early start on work, etc. I recommend finding something you want to do for yourself in the morning. It will be a lot easier to get up if you are guaranteed to do something fun for yourself — compare this to going on vacation. You probably have no problem waking up very early on vacation or during holidays. My goal every morning is to bring that excitement to the day by doing something fun for myself.

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As I previously mentioned, I have been using these tips for a very long time. Joining the world of early-risers has been a great decision. I feel less stressed, I get more done, and I feel happier than I did when I was a late-riser. If you follow these tips you can become an early-riser, too. Do you have any tips that I didn’t mention? What works best for you? Let us know in the comments.

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