Accounting is a critical function in developing vigorous financial management of a business. Most business owners are opting to manage their accounting by themselves. But it may not be the best idea: they end up wasting valuable time and resources, which could lead to unexpected costs, substantial penalties while reducing their opportunities to achieve success.
According to Forbes, the main reason why 90% of startups fail is that they lack accounting software. Entrepreneurs know all about failure. Many of them make plenty of stupid mistakes, but along the way, it’s important that they understand some of the reasons that their startup failed. And most importantly, why do competitors’ startups succeed?
It is a complicated and harsh truth, but 9 out of 10 businesses will fail, some even before they’re launched. Why? Because entrepreneurs get very optimistic about launching their business without getting a dose of reality first. Quite a few statistics claim that some companies lack the characteristics of startup success. Still, these aren’t meant to discourage entrepreneurs – quite the contrary: they should learn from other business owners’ mistakes but encourage them to work harder, and be more innovative.
Characteristics of a Startup Success
Suppose you’ve just launched your first business; congratulations! It takes serious guts to do it. Now, you must deal with all the failure statistics saying that you commit your whole life to your new business. But there’s a vast difference between small businesses, startups, and big corporations, which require different needs.
With all that said, let’s review some characteristics of successful startups.
1. Having Product Market-Fit
Selling product customers actually want and need is something many startups struggle with. Define your product-market fit – According to a CBI Insight Report, 42% of failed businesses plotted their mistake to bad market fit.
Top Reasons Startups Fail:
- Failed to raise new capital
- Not hiring the right people
- Faulty business model
- Pivot went bad
- Got outcompeted
- Poor product
- Lacked passion
- Pricing issues
- Legal changes
There is obviously no survivorship favouritism here, but many entrepreneurs will surely learn relevant lessons.
You may have the right product or service well-developed, only to find out that it’s not supporting people’s needs, nor do you give the level of support needed for success. Successful entrepreneurs know that the idea or a product concept might require adjustments in the long run. So, continue to test your presumptions and change the course if needed. It will help you nail down your product to market fit and better your groundwork for success.
2. Disruptive Technologies
Successful startups are based on disruptive market changes. Disruptive technology develops new markets that, in the end, displace more reputable ones. Therefore, the main factor of a successful startup is much more than wanting to launch a business – it’s more about foreseeing “a new normal” for the target market. It’s about the passion that led entrepreneurs to succeed in the face of competitors and other industries.
Of course, a disruptive idea will irritate someone (your competitors) while savouring your clients.
3. Take Feedback Seriously
Another essential quality of a successful startup is the opportunity to respond to feedback. Regardless of where it comes, whether from your clients, advisors, mentors, or investors, a successful startup knows how to value the feedback to help improve their business. It’s a balancing act of learning how to treat consumers and hold your ground.
4. Outsource Your Accounting
Let’s say that you are looking to outsource your business’ accounting, or you are already doing so. As such, you may always want to ensure to evaluate your existing accounting company to make sure that they’re the best choice to fit your needs. But most likely, it will change over time. Ensure that your potential or existing accounting business is operated only with a team of certified accountants, like QuickBooks. It’s vital to hire a dedicated account manager to deal with your business account.
You’re going to save precious resources. Managing your business accounts will lead to cost savings and overall better business efficiency. Hiring an experienced accountant will set you back thousands of dollars in no time. When choosing to engage a professional accounting firm, you immediately eliminate the concerns of paying a monthly fee to have access to accountants in various areas of accounting. Working with a reliable and professional team full of experts will help you never worry again about tax management, bookkeeping, etc.
5. Digitise Your Accounting
Accounting records can get messy and hard to deal with. A couple of years of records will fast turn into hundreds of files and pages. Usually, this would make data and references a nightmare. Luckily, as we get more into the technological age, professional accounting software services help businesses store their data electronically. All the data is kept centralised and safe for maximum confidentiality. Digitising your business’ accounting records will also bring you ease of access. No matter the place and time, you can get access to your records from anywhere across the world!
The conclusion
If your startup lasts, it’s mostly because you’ve considered the accounting management right from the beginning. Even though there is a lot of luck involved in some successful stories, like Google, Instagram, Facebook: there are more modest explanations why a startup may experience success from the very beginning. They create a product or service that meets customers’ needs while not ignoring anything that comes from clients and helps their business grow.
If you follow the above characteristics, then you’re about to settle your business for significant success. Look for a trusted accounting software company to focus on what matters, such as growing your business.
Budgeting can make or break future business projects, and your financial records play a vital role when it comes to it. If you want to create a prosperous future for your business, then reach out to a dedicated team of accountants who can consider accounting, taxes, audits, and business consulting.
I want to to thank you for this excellent read!! I definitely loved