As an umbrella statistic, 9 out of 10 startups fail. In this unfortunate 90%, construction and information-based startups tend to have the lowest success rate.
These businesses can be run by driven, knowledgable founders — however, if the product presented to the market (no matter how innovative or well designed) isn’t desired by users, then it’s destined for failure.
‘Every optimistic entrepreneur needs a dose of reality now and then. Cold statistics like these are not intended to discourage entrepreneurs, but to encourage them to work smarter and harder.’ — Neil Patel
So what is it about the 10% that investors snap up? Why are their products so valuable when pitched to VCs and users? …
A founder can have an amazing product, one they’ve refined and raised capital for but still do not gain any real traction when they launch. Why is that? Well simply, they’ve done their due diligence but forgotten (or failed) to get their target audience excited.
Often, in all the formalities of developing and refining ideas, actually selling it can be totally lost. Good copywriting practice is essential in getting your audience, engaged and ready to follow your journey — even if your product isn’t perfect.
Even if your competitor’s product appears ‘better’ than yours, strong sales through solid copywriting in social media or a landing page can secure your audience and add real, long-lasting value to your business. …
We’ve all heard stories of overnight success in crowdfunding, where a product like Pebble or Ouya gets millions of dollars in funding, becoming a wildly successful business. Entrepreneurs use crowdfunding for proof of concept, early validation, and even pre-orders. So it’s no surprise that on days when approaching investors goes wrong, the potential in crowdfunding seems like the light at the end of the tunnel.
Nevertheless, keep in mind that for every successful crowdfunding campaign, thousands go bust. So before starting a crowdfunding campaign blindly, make sure you know everything to make an educated decision.
Crowdfunding is a way of raising capital through the collective effort of friends, family, acquaintances, as well as existing customers and fans. Through social media and crowdfunding platforms, the approach taps into the collective resources of your network, as well as branching out into your supporters’ connections. Unlike traditional capital raising, where you have to prepare a pitch, sift through your contacts and approach potential investors one by one, crowdfunding gives you a platform to present your pitch to everyone, as well as the possibility to offer different tiers of support and reward, to make supporting attractive to anyone. …