“Little drops make the mighty ocean." Such is the journey of a startup owner. Every step you take and even every strategy you think of makes a difference. While you may have read hundreds of articles on the internet on ‘How to start a startup successfully' nothing is going to help until you start.
In this journey of yours, there are going to be tonnes of ups and downs. At points, you might think that you are losing, but you gotta buckle up and try to fix it. To help you get an idea about how failure creeps in, here are some of the common reasons for startup failure:
- Lack of market needs:
Interest is what matters the most. If your startup has come up with a new product or a new service and it does not seem interesting to the market and the customers, it is definitely not going to work. Even if you manage to interest a section of the crowd, you should be able to serve the need and not take up something only because it is trending or profitable. Present something that the market has been demanding for since time and ages. Do care to cater to the needs of the consumers if you want to get a hold in the market.
2. Poor timing:
Time and tide wait for none. But this is certainly not the case with startups and their launches. There have been numerous examples where startups have failed and emerged successfully because of the timing difference. So, the younger generation should learn from the mistakes and study and plan before taking any step.
3. Team members:
Having the right team with you while you are at a crucial stage of your career is very necessary. Your team should have members with diverse skills and talents, but the level of expectations and efforts they put in should be equal. The team should agree on all the policies and terms so that you are on the same page while the startup grows.
4. Lack of money:
Money and time are the two most precious assets you own while starting at a startup. Hence, before you spend these two in something, make sure to analyze each and every aspect of the undertaking. Devise a plan to divide and spend these on the necessities carefully.
No matter how unique and new is the space you are working in, there are going to be a good number of competitors, and escaping from them might be helpful in the short-term only. So it is better to be prepared beforehand and take it in a positive way. Over stressing and overthinking causes damage to your business strategies.
6. Lack of passion:
There is a gazillion of new and fresh ideas in the market. But an exotic concept is not only what you need to start a successful startup. Other than that you need the drive and knowledge of that particular domain. Hence, consider these three factors before introducing a bizarre concept to the world.
7. Poor marketing:
Marketing of your products and services is the best way to create a buzz in the media. In this digital era, we have been a witness to many of the new launches reaching heights due to their apt marketing strategy and plans. These brands made it a point to make everyone feel their presence. If you plan to step up your marketing game, make sure to make influencers a bigger part of the strategy. Influencers nowadays are very trending and affect the opinions and decisions made by consumers to a great extent. Collaborate with both small and big influencers to get into social, medical limelight.
8. Lack of skills needed to win:
All that glitters is not gold, and hence, you might think the job of an entrepreneur to be very comfy and cozy. But in reality, it is just the opposite. An entrepreneur has to take big decisions and has to be accountable for making those. Also, he must have a knowledge of all the things involved so that he is able to do all the things needed.
9. Cost issues:
When starting in the market assigning the perfect price tag on products is not an easy task. The pricing of the introductory product of your company needs to be suitable for the type of customers you want to engage with. You also need to maintain a balance between something that is not very pricey and not that cheap too.
10. Ignoring customers:
Do not ever do the mistake of losing connectivity with your consumers. Build and maintain a healthy and long term relationship with them. Whenever you come up with a product in the market, ask for their suggestions, welcome them, and also do not forget to get feedback's. If possible, arrange events to have an interactive session with your customers.
Building a company requires both time and efforts. Concentrate on the work you are doing and never get distracted to different areas. Be consistent in your efforts and follow up with the same heart and dedication.
12. User-friendly interface:
There have been many examples of websites and applications where people find it very difficult to find the right product for them, or it takes minutes to load another web page. Hence, developing a user-friendly interface will ensure that you are not in that list, and people prefer you above those. Moreover, what is the use of your initiative if it hasn’t been able to help the people.
13. Legal challenges:
The recent incident with Facebook has made customer privacy and data security the matter of the moment. As an entrepreneur, you should be aware of the laws and policies in your area of interest. To handle any exposure to legal challenges, approach an experienced lawyer to help you in the process. Also, keep your company and employees compliant with laws.
Fidha works as a Growth Assistant at AirTract, a social platform wherein people ask any questions, write and learn from articles, share knowledge and experience. A Math graduate, who turned her passion into digital marketing, is now keen to develop SEO friendly contents,and build website traffic. She loves to dedicate her leisure time in creative stuff and design arts.