Do you know that 9 out of every 10 startup fails?
This statistics can be very scary and frustrating for would-be entrepreneurs. Running a business and making it successful is challenging. It becomes much more difficult when you are starting up. The reason we are sharing this is not to scare you but we believe that by knowing why some startup fails, you can prevent yourself from repeating the same mistakes.
I came across this start-up mistakes small businesses make and I hope to share it with you. The reason we are sharing this is not to scare you but we believe that by knowing why some startup fails, you can prevent yourself from repeating the same mistakes.
18 Mistakes That Kills Startups:
Single Founder- Ready to build a startup. You might be tempted to go alone. Building a business alone can be very lonely. You have to be the marketing, sales and technical person all rolled into one. Most successful businesses are run by more than one founder
Bad Location- Just like everything else, location is king. This is not only in real estate but also when deciding where to locate your business. If possible, you want to be as close as possible to your target audience.
Marginal Niche – In an effort to differentiate them, business fall into the trap of choosing a niche so close that expanding becomes a major headache. You need to pick a niche that is big enough to help you grow while still giving you a competitive advantage
Derivative Idea- Trying to be like someone else will only ensure you end up as an alternative. Look at what is working today and then improve on it.
Obstinacy – Do you have a product no one is willingly to buy? Find out why and improve on it. If it is something you cannot improve on especially if consumers do not want your product, and learn to ditch it. Because most entrepreneurs are so in love with their product, they hold on to it hoping something will change. Learn to be dispassionate about your product. You are in business to make money.
Hiring bad programmer – Not knowing enough about your product can be a recipe for disaster. Same also is hiring a wrong person to help you out.
Choosing the right platform – How fast you grow will be determined by your chose of platform.
Slowness in launching – Fear of launching out may is one major cause of failure. You never can know if you will succeed except when you get out into the market.
Launching too early- At the other spectrum of fair of launching out is launching out too early. You must have your product to an acceptable level of comfort before you launch.
Having no specific user in mind- Who are your target audience? Where do they live? How do you intend to get across to them?
Raising too little money – Lack of funding can stifle a business growth. Learn how to get grant for your business.
Spending too much money- If you have too much money, you may find yourself not spending it wisely. This is where hiring or outsourcing your accounting comes in.
Poor investor management-Pick your users/customers over your investors any day
Sacrificing users to (supposed profit) – Customer’s satisfaction is the key to growth. Focus on your customers and the profit will keep growing.
Not wanting to get your hands dirty- A startup is interesting in the early day. You must be willingly to get involved in everything.
Fight between founders- Not going the whole hurdle alone is good but watch it, fight among founders has killed more businesses than grow it.
A Half-hearted effort- Growing a successful start requires much more than luck. It takes a much concerted effort
Which mistake do you think start-up are making that is not included in this list. Share your view.