Startups are a risky business and there are plenty of reasons why a startup fails or succeeds.
Even with a great product, an inspiring office space and investors locked in, an often overlooked reason I’ve seen many startups get wrong is a failure to establish an infrastructure to enable steady, reliable communications.
They need ways for employees to collaborate with each other, as well as communication channels for external partners, customers and users.
Management Team
The best way to make your team more efficient is by making their daily communication seamless. A small company with congested phone lines is as inefficient as a workplace without phones. When managers lack the ability to interact with employees, or vice versa, processes that should be relatively easy begin to fall apart. Smaller companies and startups need enterprise-class systems that enable managers to focus more on cash flow and getting the business off the ground, and less on why the phone won’t dial or how to listen to a voicemail.
Cash Flow
Cash flow is an obvious reason many startups fail. Without cash, it’s impossible to pay workers, keep that office space and prosper long-term. Most startup owners don’t associate communication systems with lack of cash flow, yet a lack of infrastructure can prohibit a startup from moving to the milestone needed to get the next round of funding. Most startups crash and burn somewhere between launching their business and seeing it monetise. A communication infrastructure is vital to moving a startup from an initial idea, to a well-oiled machine. Simply put, if customers or investors can’t reach you, you will fail.
Scalability
To support long-term growth, initial technology investments should be created to scale. As you hire additional employees, acquire new customers and grow your business, failing to have a scalable communications system can be expensive and time-consuming. Making system wide changes, adding new users as you hire additional employees and training employees to simply interact their colleagues shouldn’t slow you down.
Business Model
In the early stages of launching a company, customer acquisition requires an attractive website, well-functioning product or service and word-of-mouth references and connections to move you to the next phase. However, if communication infrastructure isn’t a part of your original business plan, it will be difficult to manage new and current customers internally. Make sure the right tools and setup are as much a part of your business model as your monetization strategy.
The startup days pass by quickly. You have a narrow “make or break” window to achieve stability with cash flow, scalability, business strategy and your management team. A well-built communication infrastructure will boost other facets of startup growth. There are plenty of reasons startups fail, don’t let failure to digitally interact properly become one of them.
