8 Reasons Why “Startup Businesses Fail” (Infographic) And How To Avoid It
Do you have any idea why startup businesses fail almost immediately before they start?
In today’s world, most successful entrepreneurs started by creating a plan to solve their problems and later developed this plan to help other people with similar interest and needs.
They work around the clock to build their startup and face so many obstacles in their initial stages. It is their passion, and their goal is to succeed in getting the final product.
It does not matter the field, it could be an individual interested in music and decides to pursue it and get better.
Alternatively, someone who develops an interest in jewelry and decides to dig in and start producing in smaller or larger scale.
Whatever it might be, there are certain characteristics about your Startup Business that will attract more people to it and convince you to take the bolder step and produce at a larger scale.
BUT!
Most Startup Businesses dream of this, and sadly enough, it is not a reality to some of them.
Starting your own business is like riding a roller coaster. There are highs and lows and every turn you take is another twist. The lows are really low, but the highs can be really high. You have to be strong, keep your stomach tight, and ride along with the roller coaster that you started.–Lindsay Manseau
8 Reasons Why “Startup Businesses Fail.”
If you are going to treat your career as a business or your business as a career, know what key elements you need to be able to build this successful business/ career.
Key Elements To Prevent Your Startup Business From Failing
1.Market Research
Do us all a favor and do not fail as many startups do. If this a venture you want to invest in the long run, do a market survey before embarking on it. Find out Who will enjoy from these Products or Services you intend to offer.
Know their needs and the typical PROBLEMS each face. Once you can identify these problems ( demands), then can you proceed to create your services/ products (supply)
2.Your Products/ Services
Successful Startups in the business world succeed as a result of goods and services that connect strongly with the targeted audience in a way that they want to buy it or use it. How do you know that you have a great product?
When your products sell and your audience come back for more and recommend to their community, then you know that your product is good. Note that, if you are not getting enough sales and feedback from your consumers, you need to reevaluate your outputs and ask questions to make amends.
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3. Distribution and Sales
If you have a great product but your consumers cannot find it when they need it, you could lose credibility and sales. Let us take a practical example here:
You walk into a shop to get your favorite shampoo and discover that it is out of stock or not available. Thinking that the shop keeper needs to order more, you check online and still can not find it. Even though you love this shampoo; you would need to get an alternative.
Getting excellent distribution and availability is a huge factor in any Startup Business.You need to be unique and choose your channels of distribution correctly.
Knowing where your consumers are and making your commodities and services available to them is of uttermost importance to your small business success. There are many competitors, and if they cannot find you, they might switch to another brand.
5. Management And Organisation
You would bear with me that, most successful Startups have an efficient management team behind. These are the backbone of the smooth running of the business.
It must not be a team of people; it could be only you and a collaborator. The important thing to note here is, there should be a strategic plan. In the early days of your business, you would have to prioritize and multitask to have a smooth running of your company.
After this initial stage, think about delegating or outsourcing responsibilities to talented people who are best fit for the job. If you intend to succeed with your Startup consider;
- Sales and distribution
- Marketing (It could be digital, social, email, SEO)
- Financial Department
- Customer Satisfaction/ Interaction
- An expert (or you) to coordinate it all
- Analytics and Feedback
6. Finance
Finance to most startups is the biggest issue. It is one of the main reasons why startup businesses fail. I understand that most entrepreneurs do not like talking about this, but without money, you cannot run your Startup to success.
You need money to create, distribute, market, promote and for the smooth running of the business. Typically most businesses have to invest money upfront to get everything running smoothly long before your goods or services can generate income.
To avoid your business failing before it ever springs up, make sure you have enough funding to run while waiting for it to start generating income. So many Startups fail because they did not anticipate or keep aside a substantial budget for this stage. Consider using crowdfunding like Kickstarter to produce a running capital at the beginning.
Did I miss some factors? I am always happy to get your feedbacks and suggestions.
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Apolline Adiju
Social Media Marketing Manager
Helping Small Business Owners Increase Thier Social Presence
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