Startup consultants help your startup in a variety of ways. Around 90% of startup businesses fail (via https://www.embroker.com), largely due to insufficient knowledge of business ownership and bad financial planning. For your startup company to be one of the 10%, consider hiring a startup consultant or startup advisor to make sure your business gets off on the right foot.
According to industry research, within the 9/10 startups that fail, around 21.5% fail in the first year, 30% in the second year, 50% in the fifth year, and 70% in their 10th year (via https://www.investopedia.com). There are many common reasons why startups fail at any time which can be avoided with proper expert guidance.
Startup failure rates
This is where business consultants for startups come in. A business startup consultant can offer business owners an array of services that will help their startup grow and flourish. They can help prevent your startup from becoming one of the dreaded 90% by leading you away from common mistakes and pitfalls that startup owners often fall into. Examples of these are (via www.failory.com):
- Lack of product market fit (34%)- Startup consultants can help you prove that people want what you’re offering. This will help attract investment from Venture Capitalists.
- Marketing problems (22%)- Consultants can help you home in on your target audience and create the most appropriate brand.
- Team problems (18%)- They can help you find the right people for your team.
- Finance problems (16%)- Don’t be one of the startups that runs out of money. Consultants can help you get your finances organised and optimistic.
- Tech problems (6%), operations problems (2%), and legal problems (2%)- Since startup consultants are industry experts, they can help you with a multitude of problems your startup may face, including technical issues such as legal.
Similar to other independent consultants such as accounting consultants, business finance consultants, or a tax consultant, startup consultants may either charge an hourly rate or be hired on a retainer basis for an ongoing service. A business consultant or consulting firm can also personalise the basis of their consultancy service to your business type. As a result, you can be sure you’re getting the best help possible.
Here’s what making the decision to hire a startup consultant can bring you and your startup.
What do startup consulting firms do?
What kind of funding are startups expecting? image from https://firstsiteguide.com
Startup consultants can help you source funding
Money talks, and the amount of capital your startup has at its advent speaks volumes of its future. In fact, development for startups is often hindered by lack of finances, hence why running out of money is the second most common reason for startup failure (around 29% of cases) (via https://www.embroker.com). An experienced startup fundraising consultant can help you find sources of funding to help your business grow and avoid funds drying out. These are most commonly sought from Venture Capitalists (VCs) or Angels, which make up 52% and 17% of funding sources, respectively.
Startup consultants can help you market your startup
Startups are extremely popular, especially here in the UK where we have the third highest startup effort rate in the world (5,377 startups and counting!). With their marketing experience, startup consultants can operate as a marketing consultant. They can work with you to create a novel marketing plan that will focus on your target market. Furthermore, they can reach larger audiences and attract more potential clients. Since marketing problems account for 22% of startup failures, an ineffective and poor-quality marketing campaign is not a risk you can afford to take. Sometimes it pays to stand out from the crowd.
Startup consultants can help you find the best employees for your startup and improve company culture
Did you know that 18% of failed startups do so because of problems with their team? (via https://www.failory.com) A startup is only as strong as its employees – you could have all the investment funding in the world, but a weak team makes for a weak company. Consultants can help you recruit the best full-time employees suited for their roles. They help create a team that are both knowledgeable and skilled at what they do. Therefore they can also help form a stronger company culture in the long run!
Startup consultants can help you enhance your business plan
15% of startup owners don’t have a long-term goal for their startup, and, more worryingly, in 2018 9% of startup owners admitted to not having a long-term business plan at all (via https://firstsiteguide.com). Needless to say, creating a business plan is primordial for your startup, but understandably this is a daunting task despite plenty of resources being available for guidance. They can help you not only structure a concrete and organised plan, but also show you how to efficiently implement it long-term.
Startup consultants can help put you in contact with the right people
Consultants are experts in their field and are likely to have years of professional experience in the industry. Business is in part down to who you know, not just what you know. Startup consultants can get you in touch with useful contacts that can also help scaleup your startup and lead to positive business growth.
How can 7startup help your startup grow?
From startup fundraising to equity research, here at 7startup we do all the above (and more!). Our services include:
Founders of early-stage startups or those with only an idea for startups may not know where to begin in the search for funding. We use investor psychology to give your startup or business idea the boost it needs to scale up, and perhaps even one day become a Unicorn. As well as focusing on startup valuation and due diligence, we can also help you navigate any complicated financial narrative, making you ready for investment and beyond.
Don’t know where to start with the fundraising process? We can do all the strenuous work for you. 7startup can match you with the best funding investors thanks to our close network of Angels, VCs, and Family Offices. We’ll also welcome you into our industry network so you can get to know the right people to help your business grow. Are you ready to get connected?
The key takeaway advantage that a startup consultant such as 7startup can bring you is their expertise in the industry. Startup consultants can help you with fundraising, marketing, recruitment, business plans, and networking. This means that with their support and guidance you can avoid the common pitfalls startup founders often make. Moreover, they can help you become one of the 10% of startups that really make it into a healthy, prosperous business. Startup consultants can help you take each step towards this stage confidently and correctly.
Amit has 18 years of experience in the industry and an MBA. He supports entrepreneurs with every aspect of their business including concept and product development, investor presentations, and fundraising.
Tags: Startup funding, venture capital, scaleups, fundraising, why do startups fail, equity research, SEIS, EIS, government funding, startup business consultants, startup consultants