Many startups find funding initially, but few manage to be successful and leave a mark. Why is this? Let’s find out. Below, we will discuss the top 10 reasons we believe lead to failure. If you’re interested in coming up with your own venture or would like to back one, make sure that you avoid making the following mistakes:
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- You failed to research whether there is a market for your product – Market research is of utmost importance before a product/service/company launch. You need to ensure there is a market for your product/service/company before you supply it if you wish to earn revenue.
- You overspent – Not just money, you may have run out of crucial time too.
- You didn’t hire right – When putting together a team, you have to have an equal number of alphas and betas. Do you know how too many cooks spoil the broth? Not every hire needs to have a Type A personality.
- You didn’t review competition – It’s essential always to stay ahead of the race. Simply having a better product offering will not do, you must market the product thoroughly and offer valuable customer experience to be successful.
- You priced your product/service incorrectly – Your startup can fail if you don’t price your product/service right. Run customer surveys, find out what they have to say on the subject, and revise your estimate accordingly.
- You made assumptions – Don’t act on assumptions, only go by research when taking any critical business decision. Your and your client’s views may not be the same.
- You didn’t have a business strategy – When starting any business endeavor, outline a 5-year plan in the least. You need to have a clear vision for your company, which you will share with your employees and sponsors.
- You did not market well – Marketing is at the heart of sales and profit. You need to identify your customer’s pain points and then address these to make conversions.
- You did not prioritize your customer – Customer feedback is necessary when running a company. You can’t pursue your business strategy blindly without taking customer insight into account.
- The timing was wrong – You need to know when to enter the market. Your startup could fail if you enter the market too early, without any demand for your product offering. Similarly, it could also fail if you came too late into the scene after the market is already saturated.
Investing in an inexpensive project management software can help you avoid making some of these above-listed mistakes. A project management software also can help you plan your marketing approach better.