In Oregon, many startup businesses try to get established each year. These companies must make various decisions and meet regulations regarding business formation issues. Beyond that, the company needs to find the secret to steady business growth, healthy sales of products and services, and being able to realize substantial profits for an extended time.
That is not an easy task. Statistics indicate that over half of new companies cease to operate due to financial problems. There are many reasons for the failure of startups. This article will describe a few important reasons that stymie the growth of new companies.
Some entrepreneurs do not create and stick to a standard of good business practices that they can and will follow. Values can drive the success of a startup. Owners must stick to those values and not compromise morality for the sake of making what appear to be fast profits. When a working commitment to the company’s values is maintained with integrity, it is usually followed with greater customer satisfaction and increased business profits.
The owners should thus beware of taking on clients or customers who are not the right fit for the vision of the startup. Another common problem is a startup’s failure to pick a name that truly fits the company and is attuned to promoting its brand. Sometimes, the creators of a concept discover the perfect name right out of the box. If that doesn’t happen, there are software apps that can assist in choosing catchy and memorable names for the startup.
It is also recommended that the new company not turn away from all other businesses that may be competitors. Some of these companies may present great networking opportunities that turn out to be critical to the company’s growth. In addition, remember to expect hard times and mistakes along the way, and to have alternative strategies to follow where necessary. It is also recommended that the Oregon startup develop a working relationship with an experienced business law attorney from the business formation stage onward; this can assure that the startup does not encounter legal obstructions in its beginning phases.
Source: entrepreneur.com, “4 Common Reasons Your Startup Is Going to Fail”, Richard Agu, Nov. 10, 2017