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One Simple Business Strategy That Will Save Your Startup From Failure

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startup failure

When you are feverishly building your startup, there are 1 million things that must be done. And if just one of those million things is off by just a fraction of a millimeter — failure. As an entrepreneur, you are frequently courting failure, and because of the ever-present chaos, you are trying to do everything yourself. Why, because no one can do the job better than you.

But you would be epically wrong. It’s wrong of you to assume that you have the skill set to manage all the moving parts in a startup. It’s not your responsibility to work in your company, it’s your duty to work on your business. That is a difficult pill to swallow when you are first growing your startup.

The Nightmare of Not Outsourcing

Jack Canfield, one of the authors of, “The Power of Focus,” shares:

”As the foundation is built, people and systems are put in place to create stability. Gradually the entrepreneur becomes more involved in day-to-day administrative duties. Paperwork increases and what started out as an exciting venture becomes a daily routine, with much more time spent putting out fires, handling people problems, tax challenges, and monthly cash flow.”

Does that sound eerily familiar to you? Is that why you started a business, to manage human resource issues? Your company does not need you to handle the day-to-day. What your business needs is your consistent focus on the core competencies that are giving birth to the products that give you a unique selling proposition and add value to your customers.

Yes, HR issues still needs to be managed, tax challenges need to be resolved and fires need to be put out, but if not by you then who? Let others maintain those parts of the business. Outsource everything that does not support your company’s core competency. Why because your success is based on focusing on a minimal number of high leverage activities.

“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” – Lee Kuan Yew

Find Bliss in Contracting (work) to Others

But before you rush to hire a consultant or a service provider you must ask yourself two important questions:

  1. Do you trust the company that is going to manage the tasks that you are outsourcing?
  2. Will outsourcing allow you to streamline the operations of your business?

If the answer is “yes” to both questions, then it’s time to outsource that function. You first start by engaging your outsourcing efforts broadly:

  • Outsourcing human resources
  • Engaging offshore developers
  • Leveraging a virtual phone system

So how do you begin to understand what can be outsourced and what is the brains of the operation? Simple, make a visual map of everything that must happen in your business to produce the sale, direct and indirect. Then ask yourself: what are the unique processes that are designed to add value to the customer that only your startup can provide?

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage” – John Carmack

Once you can separate what is necessary, what does not fit within that framework must be outsourced. Once you can focus on your core competencies what you have left are the minimal number of activities that you can leverage to compete in the marketplace.

What strategy would you give for startup success? Please leave your thoughts below!

Image courtesy of Twenty20.com

Ramon B. Nuez Jr. studies leadership. Ramon interviews leaders across a broad range of disciplines such as CEOs, entrepreneurs, and founders — to uncover what makes them exceptional leaders. Ramon writes about leadership in world famous blogs like the Huffington Post,  Addicted2Success, Lifehack, and Business2Community. He has also been an editor for the World Wide Web Foundation and Crowdsourcing Week. Ramon is working on self-publishing his first book; tentatively titled “The Growth Journal | a notebook for living with impact.” Ramon is endlessly conducting research on entrepreneurship, skill acquisition, productivity, behavioral psychology and leverages the investigation to help high achievers become so valuable that they can’t be ignored. Visit him online at www.ramonbnuezjr.com.

Startups

How Your Startup Can Effectively Collaborate With Influencers

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As a startup, your priority is to attract, engage, and turn potential clients into lucrative, long-term consumers. And the optimal way to make this possible is by incorporating startup influencer marketing.

Most consumer brands these days collaborate with influencers to grow their business. Why? Because these individuals have built a lot of trust behind them, they can promote your product or services to their audience and get them to trust your brand. This is a huge sales-driving strategy, especially for new and upcoming businesses. (more…)

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12 Things That Will Help Build Your Brand Reputation for Your Startup

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how to build brand reputation
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Brand reputation drives the success of businesses, irrespective of what industry you are in. Currently, there are approximately 543,000 startups every month. 70% of these do not survive beyond two years, 50% do not exceed five years, and a third fail to cross the ten-year mark. Only a quarter of these businesses can survive beyond 15 years. (more…)

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How Your Business Can Take Advantage of Instagram to Boost Brand Awareness

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To step up an effective social media marketing strategy, you have to consider the various opportunities on how you can connect with your target market on different platforms. Although Twitter and Facebook can be great when publishing company updates, Instagram is an excellent visual solution to inspire and captivate your audience. (more…)

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Startups

New to Business? Outshine Your Competitors With These 4 Tips

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how to beat your competitors
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Competition in business is natural. There is always another business that offers products similar to what you have, and you can’t avoid it. The wisest step to take is to become the best company among the swarm of like-minded business proprietors. It’s a competition that seeks to prove, once and for all, which company will stand out among the rest. It’s not just a matter of offering the best products, but also winning the hearts and minds of the people you want to be your customers. (more…)

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