Nowadays, it is common to find startups that fail prematurely. About 90% of the startups fail before getting to a year or two. It has been my case of concern to find out and expose those ills that run young entrepreneurs out of business. You will find out that, you have done one or two of these fatal errors in the past and maybe just luck have kept you going. What I wish you to understand is that, there is no perfect entrepreneur out there. Most of the successful startups just try to put the 10 reasons startups succeed into play and even some that did still depends on divine intervention to see them through. Below are some of the reasons startups fail.
Planning is the pillar on which many successful businesses are standing. To succeed in business one must set out time, sit down, take a break and draft a plan. Planning should be given more time and attention. A plan should not restrict the operations of the business. A plan should have allowance for revision. A plan should anticipate the need to be flexible, and it should have a system to allow you to measure how you're progressing against the plan. It should inform the way we plan, the evolution of our executives principles, and time that we spend, in the way we spend operating our business. IF YOU FAIL TO PLAN YOU PLAN TO FAIL. Every successful business started with an effective planning and every business that had failed or gone bankrupt was simply because of poor planning or no planning in most cases.
Poor Team Selection
You will not be working alone and your ideas need to be executed correctly, on time and quickly. Therefore your team is very important. Your team should stand in with you to execute your ideas, they should have the same vision as you do, should be determine to bridge all odds to see the business succeed. The team should be able to make good decision in time and quickly. Do not choose a team member based on familiarity or relationship. A team should be made up of experience, level headed and dynamic members who are willing to take correction.
Poor marketing strategy
The goal of every startup is to make sales. Therefore startups need to focus on their marketing strategies if they must succeed. Spend on advertisement, hired experience marketers; you may even decide to increase their motivation to get the products out of your counters.
No realistic vision
Do you know that some people actually get into business without any clear cut vision? You can’t be chasing wind and expect results or safe landing. If you have no realistic vision or goal, you have no business.
Lack of Motivation
People joining you on your team must have a set of motivation to keep them on track. Motivation is not only in financial terms but also your leadership and management skills. Let your team have a sense of belonging; let them be free to express their opinion. You do not always need to be bossy to have things done. If you have any contract with your members, try to keep them and on time. Tips paid regularly even when inadequate is better and the manner of presentation is vital.
This is a good thing if it is done correctly and at the right time. You can clash your startup if you scal prematurely for example, if you are hiring many people too quickly, spending exceedingly on marketing or opening too many branches quickly you may destroy your business.
Many startups fail due to poor leadership. Successful startup CEO study, listens, speak with friendly tone and reach out to mentors to improve their skill.
Poor customer management
It is often said that the customer is the king of every business but only a few put this into practice. Let your customer feel they are welcome any time, let them feel at home when dealing with your marketing team, keep the contacts of your customers and if possible give them a call or text them. Find out about their trend towards your product, do they need new features, better packaging, new brand. Treat every comment with almost important and promptly, do not be like some who will response to positive comments only, ignoring negative. If you ask me, negative comments build your business fast and help you minimised mistakes.
No matter how good your idea maybe, if you don’t have good strategy of execution and implementation, your startup will clash. Do a lot of researches, do some studies, don’t be in a rush to launch your startup but take your time and gather all the resources you will need to go through this uncertain journey.
Having a great product is not enough; you need to develop a unique proposition. Make your business unique, apart from competition. Be able to identify what your competitors do better than you and work on them, and create a brand.
This is one aspect face by startups today. Poor location is disadvantageous to your startup and may render your product inaccessible. Poor location might increase the customer’s acquisition cost.
Poor financial management
Your business should not be used as your financial bank. You must have a strong discipline on you revenue, reduce extra expenses, limit family involvement with your financial transactions and if possible, save as much as you can. Saving helps to give your startup financial backup and increase your confidence on growth of your business.
In conclusion, you start is doom to fail if you can’t keep a clear vision, apply good leadership skills, be determine, select a good team, select a good location, spend time on sales and marketing strategies. Bearing in mind that every business has the potential to succeed, I urge you to read my article on the 10 reasons startups succeed and apply the principles. You shall be amaze with the outcome.