The success of some startups is a dream! Sometimes they give the impression of having succeeded without too much difficulty. But beware of appearances: creating a successful business is far from obvious.
Besides all these successful companies, there are still more than 50% of startups that end up closing the door.
Why? What mistakes have they made that you can avoid?
1. Lack of demand
Many startups that cease their activities admit that the service or product offered met no demand.
The offer did not meet the needs of the public.
2. Lack of money
29% of companies disappear for this reason.
Even if your project is profitable on paper, with no money to pay employees or suppliers, you will get nowhere and you will be forced to give up.
3. An inappropriate team
It is the men and women around you who will make your project a reality. If they lack the experience, motivation or skills to carry your ideas, your project is doomed to failure.
23% of startups mention this handicap as one of the reasons for their failure.
4. Too harsh competition
19% of entrepreneurs are forced to throw in the towel because of competition.
In some areas, the competition is just too tough and impossible to overcome. No way to find a place next to the big ones already established.
5. Price and cost issues
To be profitable, your costs must be lower than your prices.
If your prices are too high, you will not be competitive. And with prices too low or costs too high, your business will not be profitable.
This is the cause of the failure of 18% of companies.
6. A bad flagship
17% of startups that fail recognize this: their offer was not of good enough quality to attract customers.
Without an impeccable quality product, your project will not grow. It is simply impossible.
7. Lack of a business model
17% of companies admit to having no model to which to refer.
They have a product or idea that can lead to a successful business, but no infrastructure to support them.
8. Poor marketing
Bad marketing can mean different mistakes.
The business may be spending too much on marketing or investing in an ineffective campaign. Failed communication can also irreparably destroy the reputation of a company.
This factor was the cause of the failure of 14% of the companies.
9. Customer negligence
14% of companies admit to having lost sight of customer needs.
Comments and expectations of buyers have not been taken into account to improve the product or service offered.
10. Bad timing
Sometimes good ideas arrive too early and the market may not be ready to accept this new offer, which is too revolutionary for its taste.
Conversely, if the idea of genius comes too late, the market may already be saturated.
This is the reason for the failure of 13% of companies.
Do you want to create your startup? Consider conducting a market study to be innovative, competitive and meet a present need. And if you need to develop your skills, think of freelancers! By posting an ad on Techgrits.com you will find effective and complementary collaborators.