Bloomberg published an article that said 8 out of 10 entrepreneurs fail within the first 18 months.
Why do startups fail? Most entrepreneurs tend to be so optimistic that the need to be a bit more realistic is a must. This may set you off but never let it discourage you. I am putting it out here to encourage you to work not just harder, but smarter!
- They fail to research for the right product to bring into the market.
Many entrepreneurs get so excited with earning money that they sell what they think will sell without doing further research. The reality is, most of them create products nobody wants.
How to solve this: Spend time researching and making sure the demand for your product or services is something that many people are looking for. Otherwise, it is just a waste of time and money.
- They forget the little mundane things or tasks that need to be accomplished.
Some businesses fail despite having a fantastic team and an equally amazing product. What went wrong? They were unable to notice the critical aspects of the business process as well as the tedious tasks. Check out Dijiwan’s leads’ article after their company closed down.
Working in a start-up means you do not focus on what you are supposed to work on. People need to collaborate, responsibilities and roles have to overlap. It is the annoying business model, business process, and scalability that need everyone’s attention and should never be ignored.
How to solve this: Make time to work on your business model, business process, and scalability. You may be caught up with endless meetings, emails, and calls, but you should never lose track of the heart of your business.
- The team does not know how to bounce back.
It is common for start-ups to have problems and setbacks, but it is up to your team if they can adapt to each blow. Startups fail because the team easily gives up.
A good team worries so much about changing the product, but they do something about it because they want the company to succeed. They create a new approach to marketing the business because it is necessary. They are not scared to fail and start over again.
How to solve this: Knowing that having a versatile set of people working with you is very important. I am not just talking about skills but mindset as well.
In fact, most successful start-ups usually have more than just one founder. Someone once said, “two heads are better than one.” A co-founder brings some skills you do not yet have on the table, and this will create such a good partnership.
Although start-ups like Alibaba, Facebook and Amazon have been so successful, some start-ups simply succeeded because they have product or services that are needed in the market, they treat even the most mundane of things like it is so important, and they make sure to address the problem and do something about it.
I hope these tips help you reach your business’ success. If there is something that you have learned while running your business and want to add, comment down below!
