There is the usual cycle of small businesses not existing after 2 to 3 years, of businesses not outliving their founders and it is a scary reality to ponder on and realize that one’s hard work might die almost immediately after one is dead.
We at 100 talks are here to help every time and with every situation, that’s why we would be giving you 10 mistakes that make startups fail and proposed solutions.
1. No market need. This is when an entrepreneur brings forth a business out of solely personal interest and motivation, when there is no external need for a product and the manufacturer decides that the clever thing to do is bring about that irrelevant product. There is no way this business wont crash.
Solution: Don’t birth an idea that wouldn’t be accepted because that acceptance is needed for you business to grow.
2. Insufficient Funds. This is when after making all the necessary purchases and payments, there would be no funds to keep the business going and this can lead to frustration and even worst, bring about the end of the business.
Solution: Plan for our startup costs b doubling your estimate, this way you have emergence funds to run to.
3. Having the wrong team. Once a business starts growing, the number of individuals involved equally increases and most times because it is a startup company, entrepreneurs tend to employ every individual who shows interest but this isn’t the best way because sometimes these individuals do not share your visions and missions.
Solution: Find team members who share your vision and mission while having the skill set to achieve your aims and goals.
4. Handling Competition. There is no way one wouldn’t have to deal with competition, sometimes before you and other times upcoming. Either ways, you would have people who can take you out of business.
Solution: Don’t focus on your competition neither should you ignore them. Improve on our product or service, make it better for your customers.
5. Cost Issues. Pricing can be vary but when giving a price, let the value be obvious to our customers if not your prices might come off as outrageous.
Solution: Let the value of your product or service be obvious as this would encourage your customers to patronize you.
6. Terrible User Experience. No matter how great a product is if your customers have an awful experience making use of our product or have a bad review of your services, ten there’ going to be a bug problem.
Solution: Work to eliminate all possible occasions of bad experiences by giving top notch services and accident-free products.
7. No business model. It is hard to scale when there’s no defined business model. There has to be a clear path upon which the goals of your business can be achieved and the general growth secured.
Solution: Do research and figure out the best model for your business.
8. Poor marketing. If all of the business’ funds are spent on production and development, with nothing left for marketing -there is a big problem. Because of how hard it is to get customers and publicity for one’s brand, people often ignore it.
Solution: Get a team to do the marketing. It doesn’t have to be the job of everyone in the company. Make marketing a vital item in your business.
9. Ignoring customers. Customer service and feedback are the best thing that could happen to a business. Do not ignore your reviews and comments, both good and bad. If people are feeling like their opinions don’t matter, they’ll shift focus and you’ll lose customers.
Solution: Never ignore customers. Always share their feedback wit your team and work to resolve any complaints or issues.
10. Bad timing. Do you believe a product can be launched at the wrong time? Defined market, sufficient funds, great team, healthy competition, affordable, accident-free, great marketing but bad timing. You can be so catch up in making ever other thing right then running it by being too early or too late at making a product available.
Solution: Listen to your customers, that’s the only way to get timing right.