Why Your Startup is About to Fail
There are two options for startups: a picture perfect success story or a tragic failure. Research shows that more than 50% of small businesses fail within the first four years. What are these businesses doing wrong and is your startup about to fail?
Here are the 7 most common mistakes you might be making without knowing:
Blinded by dreams
Startups arise from creativity and the dream of bringing something new to life. That’s great, but is there any need for the product you have in mind? You must know your target audience’s pain points, needs and problems. Only then can you create a product that will benefit them and in return, bring big numbers for your business. If your dreams do not solve your target audience’s problems, you’re destined to fail.
Saving money on the wrong things
Let’s assume you have done your research and there is a demand for the product you want to sell. It seems obvious that your first expenses will flow into production, creation of a website and building your team — but what about marketing? Do not underestimate the importance of a strong marketing strategy. You have to tell your target audience about your product and all the benefits it will bring. Put effort and money into a strong marketing plan and let the people know what you have to offer — how else will they find out about your great product?
Not knowing your enemy
Fact is, you are not the only startup in the ever expanding ocean of startups. Competition in nearly any area is as strong as never before and there are always new ideas popping up all over the world. It is crucial to know who you are competing with in order to be better and offer your target audience that little extra that will make them choose you.
Not working with a dream team
Egoism, arrogance and ignorance are characteristics that will make your business go down in flames. People must work together towards one goal with great passion and expertise. Especially startups are dependent on a team that is made up of positive and hardworking employees that share the same vision and mission as you.
Credibility is only a word
Credibility — the one thing no brand can live without. Truth is, if people do not trust you or your brand, you will not succeed. Credibility is not something easily obtained, it must be earned through consistency, active listening and close communication with your community. Once established, it will lead to great loyalty!
Not knowing who you are
Having great ideas, a motivated team and a brilliant product are not everything. As a startup, you have to create an identity for your company. What do you stand for? What are the characteristics your customers can always rely on? Creating a human-like identity lets your target build relationships with your startup. Therefore, a clear mission and vision, a detailed personality and identity are essential. They are the foundation of your business and crucial for success.
No relevant network
Nearly everything is going well but great success hasn’t hit? The problem might be that you are staying in your close, little circle. Be brave and step outside of this safe-zone, that’s where new ideas grow and reputations are built! Networking goes beyond the people that add value to your business, networking is about connecting to the people that matter to your target audience. Without a network, you might soon be out of work.
Your startup may fail — like many others do. But if you stay focused and look out for these common mistakes made, you will succeed. The art of success lies in opening your eyes and facing failure. After all, failure is how we learn…
WHEN YOU TAKE RISKS, YOU LEARN THAT THERE WILL BE TIMES WHEN YOU SUCCEED AND THERE WILL BE TIMES WHEN YOU FAIL, AND BOTH ARE EQUALLY IMPORTANT. — ELLEN DEGENERES