Startups: Why is failure an option?
It seems that everyone has a startup these days, but businesses come and go so quickly it’s hard to keep up. Technology is ever-changing and can help with the reason why so many startups tank within the first couple of years. Companies have the ability to use technology to explore their market in depth, create a solid business plan, and come up with the best content marketing strategies. Startups have it a little tougher than major companies because no one knows them, so it’s important for them to complete the necessary research about their market to succeed. Startups can fail from anything, but these are a few of the main reasons.
BAD TIMING
The idea doesn’t fit the market need. A lot of entrepreneurs don’t talk enough to their prospective clients. Startups need to conduct the necessary research to determine the market need for the product or service they’re offering. Some entrepreneurs tend to just dive into business ventures without really knowing or understanding their target audience. Not knowing or understanding your target audience can cause a lot of hiccups in your startup from the very beginning. For example, instead of focusing on providing a product or service that fixes their problem, you are focused on getting as many of your products (services) out there, none of which the consumer needed. The best thing to do is focus on what the consumer needs and offer a product or service that takes care of that need. You need to specialize in what you’re offering and make it phenomenal and hard to resist.
LACK OF FOCUS, MOTIVATION, AND PASSION
Companies always have to keep their “why” in mind, especially startups. Startups get very involved in their product, from the design to the functionality of the product and then the marketing of said product, that they forget about why they created the product in the first place: to solve the consumer’s problem. It is important to keep the focus on your “why” and have that in the forefront of your mind because it will help you implement a constructive business model. Another trait that many founders don’t have is passion. You have to be completely committed to owning your own startup. When you have a passion for what you’re doing, your motivation will either be solving a problem or success. Ultimately, the thought of you running your own business to help people will give you the motivation needed to operate a startup. If you don’t have passion for your market, you will end up burning yourself out with all the long hours and your startup will tank quickly.
LACK OF FUNDS AND A SOLID BUSINESS PLAN
A lot of startups have a very short-term business plan. They just want to get their business off the ground, which is fine. You have to start somewhere, but it needs to be a very detailed business plan and it needs to have long-term objectives as well. Your business plan should be clear, concise, and well thought out with goals and milestones included. Business plans need to be logical, account for resources and funds available, and be flexible enough to allow room for growth because things can always change. Some startups fail because they have run out of money before reaching the next milestone in their business plan from lack of a SOLID business plan. Networking opportunities also need to be explored because you could possibly get investors or grants to help you to the next milestone of your plan. If the planning method was done correctly and included an objective, short and long-term goals, milestones, content marketing strategies, and networking opportunities it may have saved the startup from crashing and burning.
WEAK TEAM AND LACK OF MANAGEMENT
Another reason some startups fail is by lack of a great management team. If you don’t have a great team you are just killing your business slowly. Poor management teams usually hire poor employees or freelancers and the cohesiveness of the team just isn’t there. It’s not enough to be mediocre in this field, you have to be awesome and represent your brand to the highest standards. Poor management is also a contributor to poor business models because they have terrible planning methods when it comes to product strategy and content marketing strategies. When hiring team members it is a must that their skill sets are looked it with the future of the business in mind. Your team members should possess different skill-sets to cover all departments. So, instead of hiring a ton of people for one department, try and locate the best candidates and place them in position accordingly. They should also have a versatile mindset to be able to produce a versatile skill-set because unexpected changes happen in startups all the time so it’s important to have a team that can adapt to these changes.
If you are planning on building a startup take the time to utilize technology to your advantage. There are plenty of project management and organizational tools out there to help you succeed. Take the time to research your market and find out what your consumer really needs, as opposed to what you think they need, and make sure you’re passionate about your market. Plan out a very solid business plan and take the time to select candidates that will grow with your company and that are as invested in this opportunity as you are.
