Failure can pave the road to success.
After all, with Forbes rather dismal figure that 90% of startups fail, it’s actually failing that counts, then, who managed to learn from their mistakes, dust themselves off, and get back on their feet to try again.
THESE are the startups that have lived to tell the tale.
Let’s add to this the top reason for failure is rather absurd. 42% of startups make a product NOBODY wants. That’s 42% that managed to convince themselves, their team, possible investors and supportive friends and family that this was without a doubt the next big thing……. WITHOUT conducting sufficient market research.
So let’s have a look at another 6 reasons startups fail, and how to rectify them:
1. Run Out Of Cash
Under funding, reckless spending and not knowing how to correctly draw up a budget can have you strapped for cash within your first year. Click here for more information on how to create a budget for a startup.
2. The Wrong Team
The contribution of lack of motivation, expertise, teamwork and innovation add to a startups demise. Ensure your team members have clarity and structure. Goals, goals, goals!
3. Poor Product
When the primary focus is on the product and no on the end result or usability, the result can be disappointing. You only need to think about the number of Apps that are released on a weekly basis that fail due to a terrible user experience although the concept is fantastic.
4. Poor Marketing
A great product will NOT market itself. You will need to research your customer base, demographics, ages and answer multiple marketing questions to clearly define your target audience. Click here for 20 market research questions.
Founders tend to have a poor work and life balance leading to burn out just when they need the final push. So take a day off, hide the i-phone and BREATH!
Early signs of burn out are;
- Every day is a bad day
- You feel nothing you do makes a difference
- You’re exhausted all the time
- Your daily tasks seem mind-numbingly boring
- You feel unappreciated
6. The Wrong Location
One of the reasons Upwork is so successful, is it brings together startups, entrepreneurs and freelancers working seamlessly together under one roof. Support and inspiration is a must for any startup and can see you through the difficult periods.
The best place for your location would also be where the highest concentration of your target audience is.