Starting up your own business is really very risky. We know that right? Definitely, it takes a lot of planning and market research to come up with a startup. Yet most of the startup businesses fail before even making a stronghold in the market. Even after implementing thousands of strategies and spending lumpsum, the growing entrepreneurs fail to see results. Hence, many dreams are broken and people choose to give up.
But, where do they go wrong? What mistakes do they commit that causes their downfall? Well, there are several reasons that can cause your startup to fail. And if you ought to be successful, then you need to be very careful in doing everything from making the business plan to planning your finances. Want to know why 90% of the startups fail? Scroll down and have a look:
Lack of Business Plan:
For a startup to succeed, having a great idea is not enough. Without a proper business plan, you can’t expect your company to stay on its foot in today’s competition. That business plan must be made on pillars like fund management, possible failure points, marketing channels ,etc. Those who aspire to gain tremendous growth i.e., millions of users or customers per month without a business plan are simply delusional. Are you still planning to work without a fullproof plan?
Unfortunate market timing:
Have you heard of Android? Of course, you did. You are probably using one Android run device right now. But how many of you have heard about GO Corporation? Well, they did kind of the same thing way back during the era of the palm pilot. It was designed to run as a mobile OS and had pen based capabilities. But the market was just not ready to back then. Today, we have Android basically flooding the market with tablets like iPad and Galaxy Note being a delight to those who want pen based action. So without proper market assessment and prediction, the best startups might not make it.
Scaling too soon:
Most startups don’t have a gold mine at the beginning. They can’t make the mistakes big conglomerates do since they can’t afford to. From Day 1 you need to cut your expenses and monitor yourself on a tight budget. Initially, you would be testing out the product potential and its need in the market. If you don’t want burn rates to skyrocket and bring you to the ground then don’t go all out with your investment in the beginning. It has to be a carefully calculated process.
A founding team lacking in efficiency :
Without the team behind Apple, Amazon, Google and more amazing companies they probably would not be giants today. Wouldn’t you agree? Was it possible for Steve Jobs to handle all the work single-handedly?
No matter how good of an idea your business is backed by. If you don’t have efficient founders who are able to properly manage the business it will never taste success. This is actually common for big companies too. Whenever there is a lack of leadership, he or she has to step down from the pedestal to clear the seat for someone else.
It takes a lot of hard work, strategizing and courage to make your startup successful. Being a human being, it is ok to commit a mistake but as a businessman, you must think about your profitability.
Hence, try to avoid making the mistakes above and your chances of making your startup successful can get very strong!