5 Reasons why most startups fail
Recently we’ve noticed that a lot of people are quitting their 9 to 5 jobs and turning towards startups to pursue their careers as successful entrepreneurs. Some of them have a brilliant business idea, some solve important everyday issues. No matter what the idea or who the founder is, success of a startup is a long and a difficult journey. We have been working closely with some entrepreneurs, angel investors and startups since last few years and we have seen some startups grow and blossom while others (majority) failing for one or the other reason. Over all these years working closely with these startups have made us notice a few very common and simple mistakes that startups make resulting in their failure (sooner or later). So we have decided to put an article together to show you
5 Reasons why most startups fail
We not in any way want to claim that or guarantee that your startup will succeed if you take into consideration the following points we are about to discuss. Though, we guarantee if you are smart about the following it can hugely contribute to the success of your entrepreneurship. Following are not in any particular order. Let’s Begin!
Idea / Vision / Goal
Over all these years working with some successful and some not so successful entrepreneurs we have realised it’s the idea that matters the most and an idea that solves a problem for masses works better than others. Like Uber solved the commute issues for masses, Flipkart or Amazon solved retail shopping for masses. Your idea has to be the reason you should sacrifice everything in order to make it work. We have also worked with some freshies, who just want to make money and will switch ideas or compromise them from time to time in order to just make money. Don’t get us wrong though, we are not saying that startups should not have financial goals but we want you to understand it’s more than just money; A lot more.
What we are trying to say is the financial factor should not change or compromise with the vision or goal of your startups idea. You at all times should be aware of and very clear about what problem your startup is trying to solve and for how many people. More the people, better the chances.
One of the key elements that contributes to the success of a startup is patience. There could be times people will laugh at you when you market them your idea or goal. There could be times you may not get the user response that you have waited for even when you may have done enough. There will be times people may ask you to change your idea or goals. There will be a lot of times you will feel disheartened, discouraged and willing to give up. The key is to be patient, identify the problems, research, plan and solve them one by one. This is where we have seen a lot of startups faill. They are not patient enough to make it work. They will either switch ideas or quit for good.
Taking too long to perfect it
We have also noticed a lot of entrepreneurs just wasting too much time to perfect their idea / product or service. This simply makes them impatient and fuzzy. we have also experienced startups re-doing their whole websites 3 times before the launch. Which eventually resulted in someone else launching a similar idea before them. While in our last point we mentioned its a key element to be patient, but at the same time you need to realise time flies like anything. So you need to present the idea to your audience before someone else does. There’s way too much competition in the startup world today to be waiting for the right time.
Since most of the startups are low on funds, they try to do everything on their own. For example, they would want to design their websites on their own, they would try developing their mobile applications or web applications on their own. They would run their marketing campaigns on their own. We are not saying it’s not good to do things on your own. And it absolutely fine if you or your team is expert in the trade. But if you aren’t, most probably you will be caught up in things you shouldn’t be. Due to which eventually you will lose focus and again will be wasting a lot of time.
The solution is to create a team. Hire people who are best in their trades and let them do what they are supposed to do and you do what you’re supposed to. Or you can hire an agency like us who provide dedicated tech teams for startups so that you can focus on your core business. Try not to do everything yourself.
Ok I have a great idea. My idea solves problems for masses. My product has been launched on time. It looks great and works great. But what now ? Why nobody cares about my idea or my startup ? It’s because “Nobody Knows”. The only way they’d know is when you or someone you know tell them about it. We can not stress how important this is. The very first step is tell about your startup to everyone around you. Friends, family, friend’s friends or friend’s family. No matter who you meet or where you meet’em. Be a marketing machine and tell as many people as you can. We don’t know why some people just want to keep it to themselves thinking that they will surprise everyone when they are successful.
People you know and people who know you are going to be the ones to help you out the most. Directly or indirectly they will market you in one or another way. Once that is done, Try reaching out more people who may be interested in your product or services. Reach out to them in any possible way. Emails, Social Media, Paid Ad Campaigns, SMS Marketing, Anything. But it is for sure, even if you do a bit of it, you’ll see the difference for yourself.
All of the above points have their own importances. Hope the above will help you guys plan your startups better. If you liked the article or think it was helpful, please share it. That’s what we have for today. We’ll see you in another post really soon.