Is your startup collapsing? Here are 5 reasons why
When it comes to startups, we all dream big and have higher expectations. We want our startup to grow and flourish into an Empire. Of course, it isn’t that easy to be one of the billionaires in a short span of time. They have been persistent long enough to reach where they are now. And that comes with a mastermind and great efforts.
We all desire to have our own business and no one to boss over. And keeping the same thought in the mind, most of the startups are launched. But how far do they go?
According to the 2018 IBM Institute for Business Value and Oxford Economics research, 90% of startups fail during its first 5 years. Ironically, the reason behind a dying startup could be resolved only when you know them!
So let us understand those 5 crucial reasons why startups fail?
It doesn’t solve the market need
“ If they don’t have bread, feed them cake”
Writes Rousseau describing what the queen said when the poor came protesting about starvation in the kingdom. Surprisingly, the queen didn’t know her subjects well enough to resolve their issues, neither she tried to understand problems like poverty, starvation, etc. The great queen was later out thrown by her own subjects. Similarly can happen to you, if your product doesn’t satisfy the needs of the target audience, your startup too can be out thrown.
You surely can’t sell a body shower to the villagers who don’t even have enough water to bathe. They would obviously rely on soaps no matter how to advance the world grows.
Here are a few steps you might take to prevent this situation:
- Know your target audience well. Reach out to people, research on their needs which aren’t satisfied.
- Know what do they want to satisfy- their needs or luxury. If your audience demands for luxury items, you can’t sell basic products there.
- Know the financial status of the audience you’re marketing your product to.If your target audience is middle class, you’ll have to launch products with a moderate budget.
Poor marketing and customer service
When the word marketing comes to your mind what is the first thought you have?
You might recollect Men and Women in formals, giving information on the products. Sometimes, these products aren’t even up to the mark and worth spending money on.
Marketing shouldn’t be about false commitments in order to sell the products. It should be committing the truth, right services to the customers and building healthy relationships with them. Marketing is about reaching out to the mass and promoting your product for the welfare of both the buyer and the seller.
All products have flaws. In order to maintain a good reputation of your brand among others, you need to resolve the issues of the customers and take regular feedback from them. Not only that you need to modify your product according to the demands of the consumers. Maintaining public relationships will market your product at its best.
User unfriendly product
With the rate of growth the world is moving ahead, innovation plays a very significant role. Having said that, the products we launch should be innovative, not very expensive and causing minimum maintenance.
The aim of our product should be to that, it should be easily accessible by all and satisfy the main priority of the customer.
If the product is not easy to operate and consumes more time or money on maintenance, it would withdraw the interest of customers from purchasing it.
Failure in building the right team
“Great things in business are never done by one person.
They’re done by a team of people.” – Steve jobs
None of us is smart as all of us are goes a famous saying. Building the right team is of utmost importance for any entrepreneur. Failure to do so results in the lack of outcome. It becomes difficult to proceed as the work is piled up. To overcome this and to find a suitable person to achieve the desired goals; one needs to broadcast about the vacancies and work profile on sites like LinkedIn,naukari.com etc.
Lack of vision
“Lack of realism in the vision today, Costs credibility tomorrow”
I can’t help but agree with this quote. For any budding entrepreneur, one of the most important key to stay in the league is to have a vision. One must not dream and build a castle on clouds if he wants to make a mark. It is of utmost importance to aim for realistic targets and achieve them. Vision basically should be long term as well as short term.
If you lack in vision, you’d have no strategies to implement and no market to draw. This will eventually lead to your startup imploding.
Ritesh Agarwal was a teenager when he was struck with an idea of having budget-friendly hotels. Ritesh traveled a lot and he couldn’t find any budget-friendly hotel rooms with good services.
This triggered him with an idea of Oravel stays in 2012. The main priority of Oravel was to provide comfortable beds and breakfasts, private rooms and service apartments. As demand grew, he had broadened his vision. Realizing the fact that these rooms should be easily accessible to the common, he started Online chain of Oyo rooms. Oyo rooms now is one of exemplary startup and in 100+ cities of India with a turn over of 150 crores!
As I said you can’t be a billionaire in a short time span, but Ritesh didn’t want to be one. He became the best version of himself, worked 16 hours a day to turn his vision into reality.
That’s what we at Expanrr would tell you all.
Nothing is beyond our reach if we have the vision and compassion to chase it! See failure as the beginning and the middle, but never as the end.
Make your struggles turn into a success story that would inspire generations to come.
Everyone has their struggles, inspire others by sharing with us your way of battling