Entrepreneurs in Colorado and elsewhere may think it impossible to both grow a business and a family at the same time. However, it can be possible to be a successful parent and entrepreneur simultaneously. It is important for someone to remain flexible after having a child as it may be difficult to create and stick to a plan for an extended period of time.
Entrepreneurs in Colorado may have a hard time maintaining profitability or steady growth when running a company. In fact, it is difficult to keep a company going for more than a year as only about 20 percent of businesses survive that long. While there are many reasons why a company could fail, there are a few main causes that startup owners should consider before beginning operations.
Research indicates that 75 percent of startup businesses that have been funded by venture capitalists will fail, and a similar amount of small businesses will last no more than 10 years. Not being able to attract and keep enough customers to make a profit is a major factor in the majority of business failures. In fact, there are several customer-related mistakes owners make that contribute to the end of their businesses.
A successful company in Colorado is one that can meet the needs of its target market. If it cannot do so, even a company that has had success in the past may not make it. However, there are ways in which a startup can validate its idea without necessarily spending a lot of time or money. For instance, it may be a good idea to start a conversation with potential customers.
Colorado entrepreneurs might benefit by using influencer marketing in order to grow their businesses. While this type of marketing strategy was traditionally only available to large corporations with sizable amounts of capital and large human resources, the advance of the internet has made influencer marketing more readily available to small startups as well.
Colorado business owners have likely heard of augmented reality and virtual reality. The Pokemon Go game that was all the rage in 2016 is an example of augmented reality, but there are far more sophisticated applications that may benefit a corporate entity. Virtual reality has also been implemented to create more realistic environments for computer games. Like AR, there are other applications for VR beyond how it is used today.
Analysis and preparation are key points of focus for any successful Colorado entrepreneur or business owner. Planning, in all its forms, is vital for business owners, and yet many turn their eyes and efforts toward the next challenge without proper examination. It does little good to jump in with both feet if the jumper doesn't know where to land.
Many Colorado entrepreneurs think of exit strategies as being merely paragraphs that make up obscure sections of their original business plans. As such, exit strategies are often forgotten even though they should be treated as legal concerns with growing a business. One of the reasons why exit strategies become nothing more than an afterthought is that they are seldom formalized. Instead, they are often included in business plans as boilerplate for prospective investors and lenders to review.
Startup businesses in Colorado and throughout the country are finding it harder to get capital compared to established companies. This is the case even when both startups and mature companies have the same credit profiles. That was a key finding from a Federal Reserve survey that was published on Aug. 8. Despite this, 43 percent of small businesses that had been around for five years or less and had employees were growing revenue. This was compared to just 22 percent of more established small businesses that had employees.
Colorado startup companies are often initially cash-strapped, and as they struggle to find the revenue to stay afloat, some owners decide to cut back on their marketing and advertising expenses or eliminate them entirely. This can be a mistake, because a strong marketing program can drive sales and bring a consistent revenue stream into the start-up. Entrepreneurs may instead want to develop a low-cost marketing strategy that can help their businesses grow.