Starting a business is only half the game, what happens to the business after it is started is of more importance. There are many reasons why startups fail and some can be corrected and some can’t. Whether you have a startup that isn’t going as you want it to or you are about to start one, this post will explain 5 reasons many startups fail.
1. No Proper Research
The #1 reason why most startups fail is the lack of proper research. Many entrepreneurs start a business without a faint idea of their audience and they think a business can succeed based on estimates. It is very important to conduct proper research before you start your business because this will make sure you understand your business and what exactly you’re getting into.
2. No Proper Funding
Another costly mistake many people make when starting a business is not having a proper funding plan for their business. Your business needs funds to grow, you have to buy new things, you have to employ staff and you have to keep improving your business. Over 80% of your business problems have to do with money and it can be very detrimental to start a business without having proper funding.
3. No Marketing Plan
If you’re starting your business without having any marketing plan/strategies in place you should know that you are digging the grave of your business. Every startup must have a marketing plan and if possible you should hire a professional.
4. No Customer Concern
A lot of business failures started with a mistake in the customer service aspect of a business. Don’t just think what matters most to the success of your business is your innovative idea and proper marketing, having a great concern for your customers is of utmost importance.
The best business can be the worst with poor customer support and the worst business can be the best with great customer support. Have a better understanding of your customers, let them know you care about them and you’ll be amazed to see how great your business will go.
5. No Vision
This is a very deadly mistake most people make and it might cost you millions of dollars before you know it. It is very important to know where you’re going before you ever start your business as this will be a drive towards achieving your goals.
Many startups fail because they don’t know where they are going so they easily get distracted. If you know where you are going and how to go about it, there is no other choice you have than to succeed.
Some mistakes cannot be avoided and some can, the above are 5 deadly mistakes that makes your startup bound to fail. Take a look at your business and see what you’re doing wrong, make a change before it is too late.
Why do you think startups fail? Do you have a startup that failed?