Start up businesses fail at high rates. In just the first year alone, about 20% fail, and within the first five years, approximately 50% will close their doors. If you are ready to start your own business, it helps greatly to have start up business consulting services from professionals to help you plan for your success. In this article, we’ll explain common reasons for start up failure as well as how start up consultants may be able to help your new business avoid failure.
How Start Up Business Consulting Works
Start up business consulting services are specifically designed for entrepreneurs with vision and passion that are starting a new company. New businesses are incredibly vulnerable, and start up consultants work with businesses to help with planning, decision making, implementation of best practices, and other key strategies to bolster your chance of success.
With start up business consulting services, entrepreneurs get a partner with years of experience under their belt in the business world that is dedicated to their success. Our professionals can help you with everything from exploring small business financing solutions for your start up to helping refine your business model so you can refer to it as you continue to strategize and grow.
Why do Start Ups Fail?
It’s essential to understand common causes of failure for start up businesses. Knowing top causes can help you better avoid them for your own business. Some of the most common reasons for start up failure include:
- Running out of capital
- Poor market research
- High competition
- Errors in pricing
- Failure to control costs
Knowing common areas of vulnerability, and combining that awareness with a business consulting professional experienced in helping small businesses succeed, is likely to improve significantly your chance of establishing and growing a profitable new company.
How Start Up Business Consulting Helps You Avoid Issues with Your Business
Your start up consultant is available to provide guidance at each phase and stage of your business. In the beginning, and at all times after, it is critical to ensure that your company finances are in order. Even companies with strong revenue growth can collapse from the weight of their own success if they are not properly managing their capital structure and cash flow. Our team works with you to help you to secure the capital you need to start and grow your business.
Managing cash flow after initial fundraising is also critical for your new company’s success. One thing many start up business owners do is invest too heavily in things that fall outside of their core business offerings. While this can be a good strategy for more mature companies, doing so early on may negatively affect cash flow and may ultimately lead to your closure. Fractional CFO services can help you get financial expertise at all stages of your business. It’s like having a CFO on-demand to help ensure your finances are on track with your goals.
Business consultants also can help with other aspects of planning – forecasting, business modeling, investment analysis, pricing, and so on. Your consultant is an invaluable resource for assisting in this process. They help ensure your business is properly positioned for success and growth.
Sabre Financial Group – Your Partner for Business Success
Our experts at Sabre Financial Group offer support and guidance for small and medium sized businesses. We are an advisory firm offering a wide range of services to help all types and sizes of businesses, from start ups to mature companies. Trust our team for sound advice on everything from capital raising to business exit strategies. Contact us now to schedule a consultation with our experienced professionals.