Why Most Start Ups Fail (& How to Beat the Odds)
In today’s world, technology has made it easier than ever for entrepreneurs to launch start-ups. E-commerce sites and online resources for processing payments and managing inventory are just some tools you can use to get started on the entrepreneurial path. However, while the entrepreneurial spirit may be stronger than ever, the dark truth is that many start-ups end in failure. In fact, statistics show that only 10% of businesses will make it beyond their tenth year. While this is discouraging news indeed, the right type of planning and strategies can give your business the tools necessary to make it more likely to succeed. If you are the path towards entrepreneurship, here are some things you will want to keep in mind when building your business!
Make a Product that Adds Value
A successful company starts with a product or service a customer needs; one that solves a problem in the consumer’s life. Many companies focus on the service they are offering by working on technology to provide user friendly features and attractive packaging. However, they lose sight of the product itself and how it can offer value to the customer. To avoid this, start by listening to feedback so you can determine what consumers really need and how you can make or improve your product to fill this void instead of providing fancy bells and whistles for a product that will never sell in the first place.
Going It Alone
When you are launching a start-up, money is tight. Most people will hire as little staff as possible in an attempt to save up money. However, getting other people on board can provide you with additional skills and input that can make the company a success. Therefore, it is advisable to get at least one team member on your side to set you in the right direction.
When you’re launching a start-up, there is a lot on your mind. You may be trying to network, market, hire staff and more. While these are all important things for you to focus on down the road, in the beginning you should be focusing on making a product that people will buy. Everything else is just a distraction that can end up hurting you more than helping you.
Lack of a Strong Business Model
Every successful company needs a business strategy. No entrepreneur can just fly by the seat of their pants hoping they will be profitable. A business development strategy is a written document that outlines the company’s trajectory and any company that doesn’t have one is almost certainly headed for failure. The strategy should include key points such as:
SWOT: (Identifying) Strengths, Weaknesses, Opportunities and Threats
The marketing strategies to be utilized
Establishing what sets your product apart
Working on providing excellent customer service
The strategies you will use to create your brand identity
Working on efficient and effective internal communication
…and the list goes on.
Running your own business can be very rewarding, but if it fails it can lead to a lot of disappointment and heartbreak. These tips may not guarantee success, but they can at least help set you on the road to profitability, making success more likely. We hope that you found these pointers applicable and wish you nothing but the best in all of your endeavors.