The Startup Magazine How Can Startups Avoid The Dreaded Crash and Burn?


Every new startup is exciting. They promise to disrupt the industry and completely change how their clients or customers view technology, society, or a little bit of everything. However, many startups also suffer from growing too fast too soon, which is unsustainable for many companies. Rather than change anything, they become the latest in a long line of the costliest startup failures resigned to history and a case study on what not to do to avoid a startup flameout.

startup flameout 

But just because it happened to them doesn’t mean it should happen to you. So, how can you avoid the dreaded crash and burn that has plagued so many enterprises? 

Plan Long Term 

It seems obvious that every company should have a business plan, yet experiencing sudden growth can affect these plans and too many entrepreneurs are eager to leap ahead without considering how it could affect the business. 

When outlining your business plan, it’s best to plan for the long term and outline contingency plans that can help you stay on the right track in case you experience sudden growth. This way, you’re not sailing into uncharted waters. You have a detailed plan for what to do and you can stick to it. 

Keep Your Initial Costs Low

Knowing how to minimize startup costs will go a long way toward avoiding crashing and burning during the growth cycle. Although you need to spend money to make money, some startups have overspent and assumed they can always make the money back later. 

By keeping your initial costs as low as possible, you won’t be on the hook for as much debt or even paying salaries when the time comes. Instead, you can manage your growth easily and keep the lights on. 

Work With Experts 

If this is your first business, you still have a lot to learn, especially when scaling your company and managing its growth correctly. Rather than wing it and hope for the best or assume you’ll figure it out as you go, it’s best to work with an expert. 

Seeking services like Johnny Grow business growth consultant can help you manage the trickier side of your company’s success. You can take the best approach to avoid burning out too soon and make the best financial and strategic decisions to ensure your company will survive and later thrive. 

Make Those Difficult Decisions 

Every business owner needs to make difficult decisions, and there’s no point in putting them off. It is always better to make those tough decisions as early as possible as it helps to avoid decision fatigue and means you don’t get swamped with other demands. 

Startup ownership can be tricky, especially when deciding whether to put your business or employees’ needs first. However, these are decisions you must make at some point, so there’s no point in ignoring them because they will come back to haunt you later. 

Pick the Right Team 

Speaking of your employees, you should pick the best team with growth in mind. During the hiring process, consider whether you can see these being the same people who will take the business to new heights. You don’t want to waste time hiring and then firing someone who doesn’t fit, so having a talented team right off the bat is a must. 

However, they don’t need to be perfect yet. If there are any candidates with potential, plan their professional development to help them learn everything they need to help your company grow. 

Be Flexible

Flexibility is always vital in business and it can help your fledgling company avoid crashing and burning. You will learn how to adjust your approach or strategy on the fly, which can help you avoid disaster and prepare yourself for other eventualities that might impact your company’s success. Your business will benefit from being more flexible, so outlining potential problems you could encounter will hugely benefit your progress. 

Seek Investments 

Your company will not last long without reliable investments, so exploring the various avenues to find these investments could be the best way to improve your chances of making it through the year and beyond. 

While you may not get substantial investment early on, you can still reach out to venture capitalists and other investors who could show interest in your business. They might want to hold off committing until you can prove what you can do, so focus on making your company as impressive as possible to gain their trust. 

Don’t Rush Into Growth 

Too many small businesses try to grow as quickly as possible but you already know this is an unsustainable practice. You need to be patient with your growth to ensure you don’t go too far too soon. 

So, as much as new opportunities might appeal to you and feel like you need to act now or miss out forever, consider how these opportunities could hinder your business in the future. It is often more beneficial to sit back and wait to get yourself in a better position to succeed. 

Be Strict With Compliance 

Every company should follow updated compliance laws to ensure they do not take any shortcuts, whether with in-office policies or product development. Failing to comply with government regulations will only put your company in danger and any success will be fleeting as you end up with charges that may cost you thousands in fines.

Don’t Fudge the Numbers 

Some companies try to look more successful than they are by buying social media followers or focusing more on the style than the substance. You shouldn’t need to be reminded why this is the wrong move, as it creates a false picture of your business. 

As much as you want to be perceived as successful, there’s no point in trying to look more successful than you are. Instead, be genuine with your reports and forecasts to ensure you don’t expect too much from your company. 


You don’t want your startup to end up like Icarus. You want to soar. But you cannot–and should not–fly too close to the fun. Therefore, it’s important to be patient with your growth and ensure you take all the best precautions to protect your business from failure before you’ve had the chance to change the world. By remembering these tips, you put yourself in the strongest position to avoid the startup flameout.


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