Starting a small business is a serious commitment. It can involve many responsibilities, such as borrowing money to buy equipment. Then, there's the problem of leasing or purchasing premises. Then you must promote your business and attract customers. Sharing the burden with an enthusiastic team could help your business achieve the success it deserves.
Upgrading Your Business to a Start-Up
The majority of small businesses are started by sole proprietors working part-time. According to the Small Business Association, 50% of micro-businesses operate from family homes. However, depending on your ambition or the initial success of your small enterprise, you may decide your business should reach a new level.
It can be tough moving from sole proprietor to forming a company, but your challenge could be made easier by recruiting a few enthusiastic colleagues.
Can a Team Help Your Business Survive?
The failure rate of start-ups is often cited as almost inevitable. However, the United States Bureau of Labor Statistics takes an entirely different view. According to the department's research, 20% of new businesses won't reach their second year. However, the data reveals that surviving longer becomes even more difficult over time.
A business has a 45% chance of failing by the fifth year. Even if a business has passed that milestone, 65% won't be around long enough to celebrate a decade of business success. Only one-quarter of all new businesses survive longer than fifteen years. For many start-ups, planning for long-term business success relies on assembling a highly productive team.
Persuading Potential Team Members to Join Your Business
The primary reason so many sole proprietors risk progressing to becoming a start-up is the sheer volume of multiple tasks. As a solo entrepreneur, you have to manage all aspects of your business, including producing goods or providing services, dealing with daily administration, and promotional work. To make your business highly profitable, you need to identify the different departments in your particular business that have evolved. Then you need to find your ideal team members.
Ambitious personnel are usually eager to join established businesses where they can see their careers make substantial progress. Yet, according to Statista, 3,114,111 workers chose to become employees at start-ups that were still in their first year of trading.
Identifying the Best Personalities for Your Team
The salaries available at most start-ups are usually poor compared to established conglomerates. Like many start-ups, you'll probably offer salary supplements such as free lunches. For many graduates, working at a start-up is about planning their careers. Some may be impatient to climb to management positions in a short space of time. They view a start-up as offering the best opportunity for rapid personal success. Imagine how such a determined character could benefit your new business long-term.
Other graduates may be unsure about which industry they want to specialize in. If they work for an established company, their role is sure to be limited from the day they begin. By contrast, working for your start-up, they'll no doubt experience a flexible schedule. It can help them discover and develop their resourceful qualities. Their initiative and eagerness can surely benefit your new business enormously. Recruiting a sensitive, creative thinker can also help formulate imaginative marketing campaigns.
Will Your Team Stay Loyal?
Once you've assembled your best team, how long might it be before they abandon you for a great post in a larger company? A research study by the Harvard Business Review suggested that employees usually remain in a job for around 4.1 years. However, a sense of community in the workplace convinces employees to stay loyal for much longer, sometimes indefinitely. There are many tips for starting a new business, but one of the most important is concentrating on teamwork.
How Valuable is Teamwork in a Start-Up?
A study by Stanford University revealed that workplace collaboration improves motivation by 64%. The research found this statistic generally applied to challenging tasks. It's a great encouragement to realize how teamwork can be valuable to your start-up.
However, the data concluded that the result was dependent on the business that has created a sense of partnership and community. When you have assembled your ideal small team, sharing your business goals and instilling a sense of equal collaboration should improve the performance of your business.
Final Thoughts
When you upgrade from sole proprietor to a start-up, your chances of survival can be helped by sharing the workload with a small team. Many start-ups are micro-businesses with ten employees or less. However, a business of this size has many advantages, such as a varied working day. It can also have a sense of community, motivating your team to strive for success. Assembling an enthusiastic team could provide your micro-business with the energy and ambition it needs to survive long-term.