Statistically, The United States is the leading country in the world by its number of startups. Latest estimates in 2021 sit at a whopping 63,703. However, current statistics also show that only 40% of startups become profitable over time. Entrepreneurs who launch startups are often tempted to grow their companies as rapidly as possible. But according to Times Union, successfully taking a company to a new level involves meticulously stabilizing a business model.
Les Ottolenghi at Entrepreneur.com explains that, without paying attention to finances, smart hiring practices, and a business’s unique operational needs, owners put themselves and their startups at risk. As 50% of startups fail by their fifth year, these details are hugely important. Ottolenghi believes that focusing on intentional scaling may help to ensure that all of the aforementioned tasks are addressed correctly. This enables business owners to focus their time and resources on product development and other vital processes.
Welcoming Criticism and Mitigating Risk
Being intentional about scaling a startup can have several implications. One of them is for budding entrepreneurs to be honest about their challenges. Another is to welcome constructive criticism in all forms. Receptiveness to criticism and error allows entrepreneurs to learn from their mistakes. Entrepreneur.com advises that start-up owners can streamline their approaches over time to minimize future challenges. Intentionally scaling a startup requires embracing change, risk, technological advancements, and new challenges to more effectively weather future storms.
Experts in the insurance industry advise that one of the most effective ways businesses can accept and mitigate risk is to acknowledge the importance of worker’s comp insurance. A business’s employees are one of its most valuable assets. Protecting these assets with comprehensive insurance ensures legal compliance and adequate employee protection against workplace risks and accidents. The right policies protect employers and employees alike. Concurrently, this saves money and streamlines cash flow for young startups.
Strategic Staffing for Success
The Corporate Counsel Business Journal recommends that entrepreneur’s focus on innovation, productivity, and temperament when hiring staff. The Journal notes that business owners should communicate openly with staff about the business’s goals and mission. Employees must be kept up to date with successes and losses to keep them invested in scaling the startup. Employers who hire intentionally bring aboard talent that’s aligned with their long-term goals. This enables them to scale their businesses in a manner that paves the way for future success.