According to Fortune magazine, 9 out of 10 startups fail. Isn’t that a cold, depressing and bleak truth for a Monday morning. Let’s not even get started on only 1 out of 5 startups make it’s fifth year. In fact, I would rather hear HOW the 10% were successful.
So what do the startups that succeed ALL have in common?
- Shockingly, over 50% of business failures come down to the experience and skills of the top managers! Failure is directly associated with managerial incompetence. Successful startups have a solid knowledge in their chosen market and are up to date on marketing methods and how to reach their target audience.
- Persistence, energy and resourcefulness – The WILL to make a business succeed even after multiple failed attempts at launching it. You just need to read some of the interviews in Entrepreneur magazine to realise that many founders failed their first few attempts dismally….. and overhauled their business plans, some starting from scratch completely. So don’t flog a dead horse and learn when to quit!
- They have a product that is ahead of the competition and a compelling reason to buy it. Add to this a seamless buying experience and great customer aftercare.
- They use aggressive and strategic marketing methods and have the ability to create a ‘buzz’. Before you even begin to market your product, you should have highly targeted information such as the demographics, ages, genders of your ideal audience AND understand how they shop.
- Successful startups attain the highest possible price for their product in it’s market by creating an image of value, simplicity and innovation.
- They have the ability to expand and create a range of products and a loyal following. Dyson is a great leader in this field, moving from it’s hoover to multiple other, hand held products.
- A study has shown in can take a customer 7 times to see your product before they buy. So successful startuos ensure it can be purchased in their area before targeting specific demographics.
So what is the MAIN reason that startups fail?
The BIGGEST reason a startup fails is because there is little or no market for the product they have created. It’s rather shocking to think that after creating a product, entrepreneurs are so certain their product will appeal to a mass market that customer research is not done adequately.
Secondly, the marketing of your product is vital. I have seen many innovative and life changing household items that will be forever confined to a supermarket shelf due to poor advertising. NEVER underestimate the power of social media.
- 50% of small businesses have found social media marketing effective
- 80% of small businesses were using social media in 2014
- Facebook is the top site to market your product and services
- 48% of customers use social media to assist in their buying decisions
So back to you. Struggling to build a social media following? Not sure how to engage with your target audience? Let alone where to find them. Get in touch with one of our experienced PA’s to see how we can assist you today.
We have specialists in;
- Social Media
- Content Creation
- Marketing Strategy
- Business Admin
- Event Planning and Management
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