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Start-up Advice

12 Common Reasons Start-Ups Fail…and How to Avoid Them

We’ve taken an expert look at where many start-ups go wrong, and what you can do to change your fate.

Entrepreneur

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On a list of qualities a successful entrepreneur should have, ‘an appetite for risk’ is usually one of them. This is because many business decisions in some way or another involve taking risks. But, merely making the choice to start up your own business venture is in itself risky.

It can involve cashing in your life savings, borrowing money from anyone who will give it to you – from your friends and family to financial institutions – and possibly even giving up a comfortable job in the corporate world to pursue an opportunity you have identified.

International statistics claim that an astounding majority (usually between 70% and 90%) of start-up businesses close down within the first two years. Experts in the entrepreneurial field unpack some of the most common reasons why.

1. What plan?

If your planning is not done correctly, your business will fail, says Sharon Reed, founder of the Vuka Mentorship Programme. “If your plan is right, nine times out of ten, someone’s going to help you.

If your plan is just based on fairytales and waffle and you come from an emotional point of view that you think you’re going to save the world, nobody will take you seriously,” Reed explains, adding that it doesn’t have to be hundreds of pages long; you can have the best plan in five pages.

You must identify the needs of your customers, a price that suits those needs, and if there is growth opportunity in the customer segment you are going after. If you do this, it’s likely that your plan will receive support.

“Plans have to come from customer need and the assurance that you have the experience or the know-how to make this happen. You can’t do your planning until you’ve done your homework on the market.”

2. Selling everything to everybody

Reed says: “Many small businesses don’t understand what their business opportunities are. They haven’t really understood what’s needed in the market.” A reason for this, she says, is a lack of understanding of how to research market needs. If you don’t understand what the market opportunity is, how do you position yourself to take advantage of that opportunity?

Pavlo Phitidis, CEO and co-founder of Aurik Business Incubator, says you cannot craft a business without engaging your customers to understand how they buy, what value they perceive you have to offer, what price they will be prepared to pay, what terms and conditions of trade they are happy to engage with you on, and what features and adaptations your service or product needs to have in order to compete with other sources.

“Unless you undergo that activity before you start, your idea is nothing more than a fantasy. You’re guaranteed to fail on the first turn,” Phitidis says. His advice is to identify 20 customers before you launch the business and to test your service or business with them. Craft your service or product as close to their needs as possible.

According to Phitidis, in the first three years it’s important to understand what business you are in, who your customers are and have proof of concept. “90% of your activity should focus on finding a market and crafting a product to suit that market,” he says.

3. Failure to mitigate risk

Phitidis says that the way to avoid failure in the face of risk is to practice foresight. If you can’t practice foresight based on experience, use your imagination and a good analytical process.

If you can’t do that, make contact with people who can act as a sounding board for you and talk through the various scenarios that may face an initiative you undertake in your business. He says it’s necessary to shed light on the road ahead of you. “The ditch will be there, but you can change into four-wheel drive and move around the ditch.”

Further, Phitidis says failure can be driven by the external environment. For example, an earthquake in Italy could collapse the factory that produces the product you sell to customers. Or it could affect your customer’s operation and their ability to pay you.

As an entrepreneur you should always be thinking about risk mitigation.

Why is it that you only supply one product? From one country? Produced by one factory? The external environment has hundreds of activities that could cause major stress and risk for a business, and lead to its failure. Read the news, keep in touch with what’s happening in your industry, spend time with your customers and at all costs avoid getting too comfortable, Phitidis advises.

4. Growing too quickly

“Don’t accelerate the growth of your business until you have built underlying systems to deliver that growth,” Phitidis says. He adds that if you do find a market and it responds to you, and you suddenly accelerate the growth of the business but you can’t deliver, the damage to your reputation and brand will lead to your failure.

Ed Hatton, owner of the Marketing Director, agrees that sometimes a company grows faster than what it can sustain. Hatton says entrepreneurs might be inundated with sales, yet they find themselves in a situation where they can’t pay the bills.

Another point of failure, says Phitidis, is the way you decide to build your business. “If you build it in such a way that you are the centre of the business and that without your presence running and operating the business day-to-day it collapses, you are doomed to fail.”

You need to ask: How will my business run without me? As an entrepreneur, if you start a business without the intent of building systems in the business and rapidly identifying people who can operate those systems for you, you are subjecting yourself to massive future failure, argues Phitidis.

5. Lack of skills

Allon Raiz, founder and CEO of Raizcorp, says entrepreneurs may fail due to a lack of certain skills – but adds that skills can be learnt. “I never had Excel skills or speaking skills, I went out and got other people to give them to me.” Raiz explains that he went on courses and got help from friends because he understood that he needed certain skills. He adds: “We have many deficits, but it’s about filling those deficits with skills.”

Reed says a common misconception is that you think you can fix a car, therefore you can run a business. “We tend to think that because we have the skill we can do the work,” she says. It’s not only important to have a skill in the industry, but also to show leadership. “Some people have more passion and lateral thinking than others. But everybody with the right grooming can learn to think more laterally,” she adds.

According to Phitidis, one of the biggest causes of failure is when one of the most vital ingredients of entrepreneurship in the start-up phase is lacking; this could be passion, enthusiasm or optimism.

“Optimism is an energy that says the world and the future will be better if I do this; it ignites me to create the business.” He says passion is the fuel that helps you overcome the numerous obstacles you will face before making your first sale. Enthusiasm, he explains, is the veil of delusion that you have to have to keep bashing a way at it and believing that it’s going to come right.

A lack of commitment contributes to failure as well, says Raiz. “Commitment is passion’s poor cousin. Passion is important for the start, but commitment is what keeps you together,” he explains. Too often entrepreneurs misinterpret hard for wrong. They think it’s hard to do it, therefore it’s wrong. “The underlying thing about commitment is that your purpose for doing this should be clear.”

6. Running out of cash

According to sharon Reed, a common mistake amongst start-ups is unrealistic business plans and financials. Entrepreneurs develop financial requirements that don’t suit the opportunity, she adds. “Always try to grow from the smallest base. As a start-up the last thing you want is debt. If you can pay for it in cash, rather do so.”

Try at all times to have at least three months’ cash flow in your business and keep overheads and debt ratios as low as possible. “If one or two of your customers can’t pay you for a time period or you lose business, you have three months to find more work.”

Similarly, Allon Raiz says start-ups will often put together a “wonderful business plan, with a beautiful Excel spreadsheet which shows they’re going to make so much money, break even at such and such a point, and they’ve raised money in accordance with this J curve – but life doesn’t happen that way.”

He says too often there’s no tolerance for challenges and start-ups run out of money. They should double the break-even point, and then work out if they have enough cash flow for that amount. “I would halve sales, increase cost of sales by 20%, increase costs by 50% and then work out when the break-even is.”

Hatton agrees that sometimes a business’s expenses are too high and the margins too low. “This happens if figures are optimistically set in the planning stages and sales don’t live up to this optimism. The business quickly consumes all the resources the entrepreneur started with.”

Entrepreneurs should make sure they have enough working capital to stay alive. Plan for the worst case, and monitor the forecast like a hawk. Do frequent comparisons and if you see the gap widening look at your business plan.

[box style=”gray,info” ]The Ingredients of a Successful Business[/box]

7. The wrong partners

“Partnerships in general are very difficult to manage; initially they’re fine, but once the money starts coming in, there can be a difference of opinion, and this causes conflict,” says Reed. She recommends clear job descriptions that are established upfront and documented.

Further, she says that if you require skills the other person can’t fulfil, don’t force them. “When you bring another person into the business, between you you’ve got to decide what it is you can’t do.”

Reed says a bad partnership can be fixed, but this depends on how far the problem has progressed with the partners. “Maybe you need a mediator to help identify an organogram of functions and understand where the problems are arising.” But, if you can’t get past that, one of partners can offer to buy the other out. If these negotiations fail the company may close down.

“From the word go decide who is going to lead the company. If you are hesitant to do this in the beginning, it’s not going to work. If a partnership is not established contractually the business is likely to suffer.”

Reed believes it is naive to think that both partners are on the same page. She advises that if you are going to go into partnership, bring in a third person to help put an agreement into place. “Even if it costs you a few thousand rand upfront, it’s going to save you a lot more money in the long run.”

8. Getting into business for the wrong reasons

According to Raiz, too often people get into business for the wrong reasons. “Unless you have something to sell, someone to sell it to and you can make a real profit, then don’t go there.” He says the majority of small businesses he has come across have not learnt how to productise. “They don’t know what they are selling, they don’t know who they are selling to and they don’t have a clue if they are profitable or not.

Instead, they have a perception that they are or aren’t.” Raiz explains that this results in their not being able to cost properly because they haven’t considered the complexities of non-direct costs.

9. Not reaching out

Raiz believes that entrepreneurs have access to significant resources, including family, friends, business associations and literature. But, he says, often they don’t want to reach out to those resources because of pride or ego. By comparison, most stories of successful entrepreneurs show that they have reached out.

If I had gone to get advice from people I could have saved one or two of my business opportunities.

Raiz says that start-ups should approach as many sources of advice as possible until they find the right fit. “Everyone needs a mentor, a person with whom they can share their experiences. You might see the ship sinking but another person can see it’s just a hole that can be fixed.”

Raiz also believes the company you keep plays a role. You should ensure the people around you are supportive, encouraging and positive. “There’s no doubt that had my wife double guessed me at any point I would have given up.”

10. Fear of selling

“People are scared of selling or talking money,” says Reed. “The only way to get your business going is to knock on doors and sell it, there’s no other choice.” She adds that the more doors you knock on, the more you will sell.

According to Raiz, many entrepreneurs hide behind the myth that someone else would be better than they are at selling their business or product. The reality is that there is no one better to sell your business than you. “If you go onto YouTube you will see Steve Jobs in some dungeon underneath some British electronics store talking about an exciting thing called an iPhone with 15 people listening.Bill Gates, until he resigned, kept selling Microsoft.”

For Raiz, a big indicator of someone who is going to close down their business is one who has convinced themselves that someone else is better at selling than they are. The reason for this is a fear of rejection or criticism. But, it should be viewed as an opportunity for feedback instead, or to pick up on other opportunities.

Not having a sales plan can also lead to failure, says Ed Hatton. If you don’t know who you are selling to, why they will buy from you and not someone else, and how to sell to them, you’re about to learn a painful lesson. “Very often there is an over-reliance on the product and under-reliance on sales and marketing. This contributes to lower than expected sales,” he explains.

11. Lack of flexibility

Acharacteristic of many start-ups is the inability to iterate their methodology or product with market feedback, says Allon Raiz.

He says start-ups are often committed to their idea because of feedback from family and friends. But the likelihood of that being what the market will accept, in its current form, is low. “The idea will have to be polished through many layers from pricing and product design to marketing and features before it becomes appropriate for the market.”

12. Not paying attention to your business

Another trait common amongst start-ups is the inability to understand accounts, manage those accounts and forecast and manage cash flow, says Hatton. He says business owners should be looking at their financials day-to-day or at least month-to-month and not just relying on their accountant once a year.

He also believes entrepreneurs should take the time to learn book-keeping. “Many people don’t understand that they are making losses or why – they don’t understand the basics. Training is widely available but a lot of it is just common sense. You can easily look at your bank account and see who hasn’t paid you.”

Reed suggests that entrepreneurs start writing monthly reports about what the business is doing. “Write them to yourself, pretend you’re going to present them to someone. Ask yourself how the operation’s working, how HR is performing, whether employees are fulfilling their duties, and if payments are functioning properly. Make notes of these things.”

[box style=”gray,info” ]When to Give Up On Your Idea[/box]

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Start-up Advice

4 Tips To Secure Funding For Your Start-up

Here are 4 tips to help you secure funding for your start-up.

Ellie Martin

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Entrepreneurs seek to create new and ingenious ideas. Successful business owners are adept at looking at things in new and interesting ways. Their creativity fuels everything they do. Blazing through the initial steps of opening your own start-up can seem like a breeze if you’re endowed with this creative mojo, but you still may find yourself stuck at the very last step of starting your business.

Finding funding is undoubtedly the most difficult part of starting a business, and securing it requires the most creativity of all. Still, you can only stretch your creativity so far. Luckily, there are a few ways you can improve your chances of getting the money you need, regardless of whether you decide to attract angel investors or venture capitalists, or if you decide to apply for small business loans and grants.

Here are 4 tips to help you secure funding for your start-up:

1. Seek alternative funding opportunities

Before taking out a massive bank loan, consider these other funding options:

The vast majority of entrepreneurs either use their own funds to start their business or borrow money from friends and family. According to Forbes, 90% of start-ups fail, with 25% of them failing within their first year of operation. Due to this rate of failure, if it really is impossible for you to attract investors or secure venture capital, it is still best to avoid putting up your own money. Before draining your personal savings account, look into other options, such as crowdfunding. Research small business grants as well, as these can help cover gaps in funding.

2. Write a top-of-the-line business plan

If you’re interested in attracting investors, you’ll need a solid business plan to lure them in. Regardless of how wonderful your idea is, you must communicate that idea effectively and back up your claims with thorough research. A tightly organised business plan has the ability to assure investors of your industry know-how. It will give them a picture of how you plan to run your business and how accurately you can assess and address risks.

An entrepreneur who has a business plan with a punchy executive summary and a precise market analysis in hand is more likely to attract shrewd investors than one with only an inspired (and undeveloped) idea.

Related: Business Plan Format Guide

3. Network, network, network

The absolute best way to find investors is to network. Generally, you never want to cold call investors with your business ideas. You want to build relationships naturally with those in your industry and in your local community. Talk with other business leaders and go to local events. Offer to help other entrepreneurs and established business owners. They may return the favour by introducing you to reliable angel investors or they may steer you to a venture capital firm that helped launch their start-up. They may even offer to pitch in some of their own cash, if they really take to your idea.

Moreover, to make sure your networking efforts are effective, try to pinpoint the audience who would be most interested in your idea.

“Network selectively,” advises American author and entrepreneur, Steve Pavlina. “Take the time to build a profile of your ideal customers, and target your networking activities to reach them. Speak to those who are already predisposed to want what you offer.”

Building connections is a vital part of creating your business. You’ll need to build new ones and strengthen existing ones, not only to get the funding you need in the short term, but also to survive as a business in the long term. 

4. Be prepared to compromise

Asking for funding for your startup means experiencing failure time and time again. Most of the investors you’ll encounter will pass on your idea. You shouldn’t take this to heart. It’s all a part of the process. You may find that in order to get the funding you need you’ll have to give a small piece of the business over to an angel investor.

Your first crowdfunding effort may fall short, and you might have to incorporate feedback from backers and implement changes to the core of your idea to crowdfund successfully the next go around. Don’t be too rigid with your vision. If you’re willing to make some slight changes, you could have a much better shot at landing a deal.

Securing funding for your start-up is no easy task, but it is certainly not one you have to do alone. Enlist the help of friends, family, and business associates to help you craft a superb business plan, meet other entrepreneurs and investors, and make revisions to your idea. Use their input to help you find other ways to fund your start-up, such as small business grants and crowdfunding. Use these 4 tips for securing funding for your start-up, continue researching your target market and refining the way you approach investors. Without a shadow of a doubt, if you’re willing to seek the advice of others and compromise when necessary, you’ll find a way to fund your start-up.

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Start-up Advice

7 Strategies For Development As An Entrepreneur

What follows are seven simplified yet key strategies to develop yourself as an entrepreneur which are a hybrid of the authors’ practical experience and what he has learnt from very successful entrepreneurs, coaches, and consultants over several years.

Dirk Coetsee

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What lies behind you and what lies in front of you are tiny matters compared to what lies inside of you” – Ralph Waldo Emmerson


I am an entrepreneur, I surround myself with business minded people, I am privileged enough to be mentored by great leaders. I speak to visionaries, I write about them and learn from them.

What follows are seven simplified yet key strategies to develop yourself as an entrepreneur which are a hybrid of the authors’ practical experience and what he has learnt from very successful entrepreneurs, coaches, and consultants over several years.

A wise man once told me, “A higher level of consciousness does not mean you are better than anybody else it just means your mind sees from a higher vantage point and therefore you see clearer than most.”

Related: 8 Entrepreneurs Share Their Best Advice For When The Going Gets Tough

Those wise words lead us into explaining the first strategy:

1. Expand your consciousness

Simply put your consciousness is nothing but what you are aware of. By increasing what you are aware of through experience, study and honest self-reflection and by inquiring deeply into every aspect of your business as to increase the quality of your awareness you are enhancing the quality of your experience as an entrepreneur.

The second strategy often referred to as priming or framing is commonly used by successful entrepreneurs:

2. Priming or framing

Priming or framing is creating a positive mindset first thing in the morning which builds mental strength and the capacity to face the day with a very good attitude. This is, in essence, done by creating a morning ritual or habit for yourself which can take whatever form you prefer, as long as the outcome of it is a stronger and better you.

Some prefer meditation and/or prayer. Others repeat affirmations in the mirror. Some take the quiet early morning hours as the opportune time to read and learn more about their craft. Exercise is another way to start your day in a positive way. See this exercise of Priming or framing as an investment earning compound interest over a period of time.

nelson-mandelaGoogle whom any famous leader or entrepreneurs’ mentor was and a name or many will most certainly pop up. Nelson Mandela’s’ mentor was Oliver Tambo, Warren Buffet holds the Dale Carnegie certificate proudly displayed on his office wall in high regard, the famous investor Ray Dalio is still coached by Tony Robbins.

Related: (Podcast) Being An Entrepreneur Is Painful

That explains why you should:

3. Be willing to be mentored

When I facilitate training or a coaching session a common objection to being mentored is: “ Yes , but I do not know anyone that could mentor me.”

Honestly, what a lame excuse. Most servant leaders understand that it is part of their duty to society by leaving other servant leaders and/or entrepreneurs behind and are actually just waiting for your call.

It is really as simple as that, make your list of people that you look up to and want to be mentored by and call them, sincerely tell them how much you admire them and ask for guidance and mentorship. To those whom knock sincerely a door will be opened.

There is no such thing as a “self-made man” as everyone has received some help in some shape or form along their journey of entrepreneurship.

It is much harder to give up on something that you really have worked hard for over a long period of time as opposed to something that you have approached with half-hearted intent and little effort.

Therefore:

4. Hard work compounded by smart work

Hard work is not only something that you should do to stay ahead of the competition but a necessity in order to build resilience.

When you have lost sight of your purpose and vision as an entrepreneur decision making becomes drastically harder, your morale might be affected negatively, and your bank balance might suffer as a consequence.

So:

5. Ensure that you have constancy of purpose and a clear Vision

A very effective way of priming and/or framing is to remind yourself of your purpose and vision every morning. Make your Vision and purpose visual by displaying it clearly at your office. An entrepreneur cannot talk regularly nor enthusiastically enough about his or her vision and purpose. When you have not wholeheartedly bought into a vision and purpose how can you expect your team to?

ian-fuhrThose whom embody servant leadership of which the founder of Sorbet, Ian Fuhr is a prime example know that unconditional giving as a principle not only builds character but empowers others so that we can not only grow as businesses but as people.

Related: 10 Young Entrepreneurs Under 30 Share Their Start-Up Secrets

That is the reason for:

6. Giving without expecting anything in return

When you give of yourself unconditionally you have a true servant heart and your clients will not only be loyal, but they will love you in general. Giving unconditionally feels good and receiving unconditionally places no burden on you and creates a wonderful and vibrant work atmosphere, generally speaking.

When you only take a stand on your principles and values during good times yet allow them to crumble in the face of challenging times “your house is divided and cannot stand”.  Your principles and values must become ingrained practises and not just frivolous words.

Taking the aforementioned into account:

7. Have non-negotiable principles and values that you live by

As an example, if when respect is a non-negotiable value that you live by you will refrain from losing emotional control and will be willing to walk away from a conversation where someone dis-respects you.

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Start-up Advice

7 Ways A Tech Start-up Is Like Starting A Band

Building a successful tech start-up and putting together a band are more similar than most entrepreneurs and musicians would like to admit.

Alice Goldstein

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Building a successful tech start-up and putting together a band are more similar than most entrepreneurs and musicians would like to admit. The truth is that both of them require a lot of hard work, sleepless nights, self-induced poverty and other big sacrifices. Like a startup, says Alex Grossi of Quiet Riot:

“The process that once entailed a songwriter or record label spending countless hours and dollars recording, manufacturing and marketing music is gone. It is now up to the artist to figure out what the next move is in the industry.”

Succeeding in the music or the business worlds can also bring a number of great benefits. Becoming a successful entrepreneur can open up doors to new, more fulfilling projects and rewards. Moreover, you will have more control over your future ventures and have a big role in the success of any project you work on.

Visualising your tech start-up as a band can help you get creative, and may even help catapult your company to success. Because of this, I’ve put together a list of seven ways a tech start-up is like putting together a band, so you can put on your inspirational hat and make your company more than just a one-hit-wonder.

1. Be honest with your skill set

The first thing you need to consider when starting a band is the instrument you can play and at what level. The very same can be said for tech start-ups. Technology now influences virtually every single part of modern society, so you need to consider the skills you have available and determine how you can use them to create a good product.

David Ellefson, the bassist from Megadeth, owner of Ellefson’s Coffee and EMP label group shared his learning experience forming and playing in rock bands, in which he said:

“The idea of a rock band is selling this dream of the ultimate creative journey and endless freedoms. Yet, things like showing up on time, knowing your role (and respecting the roles of others!), disciplined practice, marketing &; promotion are as much part of the band experience as getting onstage and rocking the house each night.

Related: How Craig Bright And Brian Little Launched Rocking The Daisies

I learned many years ago that just because I was successful in music didn’t qualify me to be an expert in other fields, too. My successes came as a result of discovering my passion and honing in on skills that came natural to me. That led to relationships that opened doors for my success. We’ve all been blessed with certain skills, talents, and abilities and having success (and happiness!) usually lies with our passion allowing us to be the best we can be with those abilities in a chosen field.”

The good thing is that you don’t only have to focus on your particular expertise. Each band member offers a valuable set of skills that contribute to the quality of the music. In this case, your band members will be your start-up team. Take a look at what each team member brings to the table and make sure you are applying them to their full potential.

2. You need to be driven by passion

business-passionJust because you love music doesn’t mean making music will just happen, and in the words of Phil X the guitar player of Bon Jovi:

“There are no short cuts. You have to kick your own ass before you kick everyone else’s.”

Once you have identified your passion, the next step is acquiring the skills to realise your dream. This may seem tricky at first, but try to get creative and figure out a way to combine your skills and passions to build a valuable business.

If you are preparing to launch a tech start-up, you should definitely find something you are passionate about. Not only will this make your work easier, but you will always find motivation to give your best, even on bad days. Moreover, you may find that working on something that you really love will actually bring you joy and work as extra fuel when your tank is running low.

3. Put together a stellar lineup

If you were building a band and you knew the best drummers and bass players in town, you would definitely reach out and try to recruit them, right? Well, the same thing goes for your tech start-up. You should review all your options and scour your connections until you find the combination that best suits your vision.

Now, remember that putting together a killer lineup isn’t only about finding the best of the best. You also need to find a balance and make sure that the talent you bring on board will compliment the whole team. If you have two great candidates, but you think they won’t work well together, you are better off choosing the one that works best with the rest of your ensemble.

4. Practice makes perfect

practiceOne of the most important aspects of having a band is practicing frequently. Musicians already have a high level of dexterity, but that doesn’t mean the band will sound good right off the bat. By practicing together, you can make sure everyone is on the same page and organise your act.

As a start-up, the equivalent of having band practice is working as a team. Although everyone learned the skills needed to carry out their specific tasks separately, you also need to work as a team to make sure everyone is in sync.

A good way to do this is to give everyone individual tasks, and also assign at least one communal task a week. This will give you time to sit down with your team members, gauge that everyone is on the same page, and clear the air if they are not.

Related: Will.I.Am: The Man Who Took Music To Mars

5. Networking is the KEY

Any successful musician will tell you that networking is as important as the quality of your music. Networking with the right people can help you land gigs, get your music to the right listeners, and make a name for yourself by rubbing elbows with established industry giants.

The reason why I say that networking is KEY to any tech start-up is because it’s what will enable you to Keep Expanding Yourself. Building connections with established tech companies and influencers can help you get your name out there and land significant contracts. Not only this, you will also be able to gain valuable insights from the people that already thrive in your industry.

6. Find your audience

audienceMost bands already have a good idea of who their followers are or will be, and they focus on getting gigs in venues that will attract these fans. This makes their promotion easier and increases the chances of hosting a successful event. Not only this, in order to adapt to your audience’s changing needs and preferences, you must be ready to diversify wherever necessary.

Marq Torien from BulletBoys put it beautifully “Always know at some point you have to reinvent yourself in your music career. It’s a must, if you want to keep your audience and fans who love what you or your group does. All the great musicians and artists have done so at some point in their careers. Don’t have fear of diversity”. Marq stayed true to his words as their highly anticipated March 2018 Frontiers Records release “From Out of The Skies ” is truly one of their most diverse album to date.

Although it’s a bit more complicated, you should identify your start-up’s perfect clientele in the form of fictional buyer personas. This requires a good amount of market research, but it will give you essential information about your potential customer base. You’ll be able to create marketing campaigns that speak directly to your buyer personas through the channels they use the most as well as diversify based on changes in consumer demand.

Related: Kim Coppen-Watkins On Having And Maintaining Strategic Growth

7. Use all available promotion channels

It’s no secret that the most popular bands are featured on radio, television, the internet, and just about any other channel you can imagine. Besides boosting their collective egos, bands tend to take advantage of all promotional channels they have available because it guarantees it will extend their reach as far as possible.

You should also consider all the marketing channels you have available and take advantage of every single one of them. Now, if you start-up is in its early stages, you may not be able to invest huge amounts into advertising. That being said, you can always get creative and use free marketing channels such as social media platforms, blogs, and YouTube videos.

Finally …

Launching a tech start-up may not sound as glamorous as being in a band, but they are more similar than you may think. Always remember a successful tech start-up requires patience, a lot of behind-the-scenes work, the ability to adapt to change, and a well-organised team. Follow the tips outlined above to pave your way to success and enjoy the perks that come with it!

This article was originally posted here on Entrepreneur.com.

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