According to Forbes, 90% of Start-Ups fail within one year of beginning their business. The statistic stands quite opposite to the dreams of most entrepreneurs to start and build a business that makes its mark in the market. The failures start-ups fail are majorly due to the organizations’ inability to identify the factors that might result in the downfall of their business. Below is a guide to the reasons due to which start-ups fail, so that you can read and avoid facing the same in your start-up:
Hear Out the MarketStart-up owners often do mistakes related to the market, including difficulty in understanding marketing trends, not understanding the right customer for the product and poor marketing. Organizations need to understand their market and its needs and cater to their services and products accordingly. This can range from products or services that are already out-of-use or too advanced to be accepted by the current market.
1. Is the Product Worth Selling
Start-ups often launch the product without even checking their importance and demand in the market. This often leads to the product being launched at the wrong time or not meeting the quality expectations. A good example of this scenario can be products that are suitable for specific seasons or occasions. A rather funny example of this could be selling woolen clothes in the summer season. While the product might be bought by customers willing to travel to colder places, but their count would be very less for a business to survive.
2. Focus on the Pocket
Money is as important to meet the customer’s budget, as important, it is for a startup to earn revenue. Sometimes start-ups end up delivering products or services that are way beyond the customers’ budget to be worth purchase. Reasonable pricing is a crucial factor for not only a product but also the brand to maintain its place in the market. Apart from the customers, start-ups also fall short of money in their beginning years. Take care that the product is unique and sustainable enough to convince your investors to provide some financial aid in need.
3. Your People Take You Ahead
As the saying is “Any Company’s Greatest Assets are its People”, people in any company play a vital role in both rising and fall of any company. It thus becomes crucial for start-ups to have the right people with the right mindset i.e., Skilled people with great conviction towards the brand and its products and services.
4. Know Your Customer
Once a product has reached the market, it is most essential to not only hear but also understand and work on what the customer has to say about the product or service. Focus on both the good and bad: work on delivering the good factors even more and eliminate the bad. Your customer has the power to take your product to unimaginable heights or toughest ends, depending on how you treat your customers.
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