Here are 12 reasons why startup businesses fail in the first year of business:
1. Your Product Doesn’t Have a Market
Identify a need before creating a solution. Building a product and then looking for a target audience is a recipe for disaster.
2. Your Resources Run Dry
Time and money aren’t infinite resources, so use them efficiently and wisely.
3. You’re Not Working with the Right People
Hiring smart people won’t get you anywhere if they can’t work well together. Build a team with complementary skills and perspectives.
4. You’re Outmatched
Don’t obsess over competitors, but don’t ignore them either. Even if your product is superior, a flawed user experience and sluggish time to market can kill your business.
5. Your Pricing Model is Flawed
Are you pricing your stuff too high – or too low? Find the sweet spot by learning why customers churn: do they say the product doesn’t justify the cost? Or complain about the usability instead?
6. You’re Not User-Friendly
Just because you believe it is a good idea, doesn’t mean customers will run to buy it. Listen to what they tell you they want. Assume nothing!
7. You Don’t Have a Concrete Business Plan
Even with a great product that people want to buy, you need to be able to scale appropriately. Create a sound business model that investors will trust and you can rely on as your grow.
8. Your Marketing Efforts Fall Flat
A great product is meaningless if nobody knows about it. Know your customers’ pain points and how to capture and keep their attention.
9. Your Customers Take a Backseat to Your Version
You require a clean vision to achieve your goals. But don’t put on blinders and pursue that vision full steam ahead without asking for feedback from your customers.
10. You Release Products at the Wrong Time
Timing is everything. Debut too early and you risk a poor first impression with a product that falls flat. Wait too long and someone else will beat you to the punch.
11. You Do Not Use Networks
When starting a business it is important to network and have ambassadors who will vouch for you and recommend your products or services to people that need them most.
12. You’re Not Able To Support Growth
Things could will probably go smoothly for a while, that is until you decide to grow and expend. Ten percent of startups fail because of the growth problems or because they decided to grow too soon.
About Alex Noudelman
Alex Noudelman is a digital marketing expert at iRISEmedia. He received his Honors B.A. from York University and a Masters in Adolescent Education from D’Youville College.