We often hear about great business stories from all sides. In reality, however, quite a few start-ups cannot break through. A recent CB Insights survey of a sample of 101 start-ups shows the reasons why. Maybe thanks to them you can avoid mistakes and kick your business to a higher level.
1. There Is No Interest In Your Products, Services
Companies do not sufficiently verify the interest and correctness of their actions. You can have a beautiful product in a nice package with interesting marketing. However, if people do not need your product, they will not buy it. Try to focus on what you would like to improve or simplify with your product. When you ask your surroundings what they need, you will gradually be able to answer all the important questions about your product.
2. Lack Of Cash
Many good ideas failed due to lack of money. It is very important to consider how you want to spend your capital. At the beginning of the business, it is advisable to limit expenses only to the most necessary things to achieve your goals. In addition to selling the product itself, it’s also about finding out if the product is of interest to you. If it turns out that your product or service has potential, you can gain investors or sponsors.
3. Wrong team
Many experts say that having a diverse team with different skills is the key to the success of any business. However, this is not absolutely true. It is important that you have a “founder” with a clear business plan and business model right from the start. A team of enthusiasts with a good idea is not enough. Someone must also “command” your business and have an idea of how to sell your product.
4. Non-Monitoring Of Competition
Even if novice entrepreneurs often don’t like it, it is essential to monitor your competition. You need to find out what your business rivals offer, what they prepare and how they communicate with their potential as well as current customers. The competition is a good reason to improve and offer something more than others.
5. Bad Price
Price is one of the most important aspects that determines the success or failure of a business. Always keep in mind your costs and goals. Profit maximization should be your long-term goal, not a short-term affair. In some cases, the only appropriate strategy is to cover production costs. This is a short-term goal if the market is in crisis or bankruptcy. The launch of a product or service is not necessarily associated with a price war. A higher price can also be an important signal about the quality or exclusivity of a product.
6. Unfriendly Product
You are here especially for your customers! Ignoring their habits or their needs is one of the other mistakes made by beginning entrepreneurs. So don’t forget to ask your surroundings, potential customers, what they need to improve their lives. Their answers will be your guide to success.
7. Missing Business Model
We all agree that the business model is important in business. Look for ways and potential even at first glance in marginal things. Don’t follow a strict business model. There are many examples where companies have finally broken through with their side activities. Be open and try to be prepared for all possibilities. The market will show you which business model will be right for you.
8. Weak Marketing
Weak marketing is a common phenomenon not only for Slovak companies. Having a great product today is not enough. Your potential customers need to know about it . Missing or weak marketing is one of the common mistakes of start-ups. It is one thing to make a product and it is another to sell it. Therefore, do not underestimate the power of marketing.
The success of big brands is a combination of a good product and quality marketing. Don’t be afraid to be visible. If you have something to offer, you will definitely find your customers. Many entrepreneurs believe that an advertising campaign costs thousands of euros. However, this is not always the case. For example, advertising on social networks will cost you hundreds of euros and often serve the same purpose.
9. Ignoring Customers
Remember the basic rule that everyone knows: “One angry customer equals a hundred satisfied.” It’s important not to ignore feedback from your customers. Ask why they were not satisfied and how to improve your services. Your customers’ perceptions are often unbiased opinions that bring a view of your product from a new perspective. At the same time, they can be a guide for you on how to prepare a truly full-fledged product that customers like and will be happy to return to.
10. Bad Product
A good product should “hold your breath” with your customers. If you test it insufficiently, the first impression of customers will be negative. You can expect a lot of complaints and dissatisfaction with your product. However, it is very difficult to correct the first impression. Also, make sure that your product does not overtake the time. So he shouldn’t deal with things that people don’t currently think is a big enough problem. If your customers are not prepared for your technology, or innovations that people do not benefit from, it can have unfortunate consequences. The rule here is to come to market at the right time and with the right product. It is important to solve the current problems of your surroundings with a product or service and respond to the needs of people.
The Most Common Reasons For The Failure Of Start-Ups:
- Not interested in your products, services 42%
- Lack of cash 29%
- Wrong team 23%
- Non-monitoring of competition 19%
- Bad price 18%
- Unfriendly product 17%
- Missing business model 17%
- Weak marketing 14%
- Ignoring customers 14%
- Bad product 13%