Everyday startups are creating new and innovative ideas in their quest to make our lives better. Sadly, many of them never see the success they hoped for.
It can be hard to conceptualize and bring forth an idea that everyone can accept and embrace wholeheartedly.
There are new companies creating fantastic products and many of which become a flop with consumers.
Whether it’s a great idea or a bad one, lets take a look at some of the reasons why startups fail, and how you can overcome these obstacles.
1. The Product
This is probably the number one reasons why a new business venture fails to fly. 90% of startups fail, and that’s something a company needs to keep in mind before treading the waters.
If you can’t deliver a product that solves a problem, no one will care to spend their money on it.
Create an automatic banana peeler and promote it in a country like Uganda, where they consume the most amount of bananas per capita in the world and it might go well(maybe).
If your product can’t make the average consumer’s life any easier or better, you’re surely to sink.
Your product has to fit the market you want to break out in, and that’s why your market research is an important element which could lead to success.
2. Marketing And Promotion
You may have a great product that solves a particular need because your market research tells you so. Excellent!
But if nobody knows about your new invention, who’s gonna buy it? Maybe your friends and family might, but not certainly those who you’re targeting.
You’ve got promote and advertise in the right places. Crowdfunding is always a great place to do this.
Sites like KICKSTARTER are an excellent avenue to get lots of eyeballs on your startup idea.
You’ll want to let blogs and news outlets in your niche in on what you have to offer, so they can in turn, let their audience know what’s up.
You’ll also need to get on social media and promote there as well. Find the various channels that will work for you, and let people know what you’re doing.
Twitter, Facebook, LinkedIn and others are a great place to start.
3. Business Management
Having the right team behind you is important. It won’t guarantee your idea will be a success, even if you have the right product and marketing in place.
The CEO of a new company, has to know how to and manage the money that comes in and out.
Understanding your cash flow and how you will make things work is paramount to your success.
The last thing you ever want to do is to run out of money quickly.
He/She needs to delegate jobs appropriately, even if it means the engineer needs to contribute to the marketing team.
While everyone will have their own unique role, in a new business the entire team needs to be apart of the creative collaboration.
It might mean that some team members will have to get outside of their comfort zone in helping another department achieve a goal.
4. A Definite Goal Or Purpose
Often times a startup may have great ideas and a product to match without a long-term strategy.
You have to have a goal, any goal, some goal as long as it leads to somewhere.
The person who wants to get stronger will never be, if they don’t plan to go to the gym or get on a strength routine of some sorts.
They will usually have a goal of loosing weight or gaining it and often times set the number of what they want to weigh. Once they’ve achieved that result, they’ll set another.
A business works the same and unless the CEO sets a series of goals for the company to reach, they become as a ship in the sea with its engine running without any clear direction.
Set measurable goals and get the team on board with your vision and a time frame for its completion.
Some startups fail because of the lack of planning a course after they’ve launched a successful product.
You’ll always want to be consistently setting new goals for your company to attain. The successful ones do, and it might be a great idea to get with someone who’s doing what you want to do, and do what they do.
These are just a few of the reasons why startups fail. A lack of direction, bad business management, dismal promotional materials and a poor product are recipes for disaster.
Your company might have all of its bases covered with this list. Even so, this won’t guarantee success.
One of the biggest attributes a new venture needs, is persistence.
Larry Page and Sergey Brin wanted to sell their search engine idea to Microsoft in the late 90s, for just over $1 million. Microsoft declined, even though Google’s co-founders knew they had a solid idea. The rest is history.
Walt Disney went bankrupt a bunch of times before Disney became a reality. He at one time was told he had little imagination and was fired from being an editor at a newspaper. Now everyone wants to go to Disney Land, end of story.
Oprah was told many times she was unfit for TV and reporting and that she should just give up. Years later, she’s impacting people’s lives and having a lot of fun$$ doing it.
You just need to keep on trying in the face of adversity. If things aren’t working out, then make adjustments accordingly. Just don’t keep doing the same thing repeatedly expecting a different result.
We all love to see new gadgets and inventions that make our lives easier. If you’re a startup company, make sure you understand your market and bring us the product we’ve been waiting for.
Crowdfunding For Tech Startups
We love startups and entrepreneurs who have a passionate drive to bring their innovative ideas to life.
We are excited to announce our crowdfunding platform for tech startups.
Maybe, you launched a KICKSTARTER or INDIEGOGO campaign and didn’t reach your goal, or maybe you feel intimidated by the thought of showcasing your new idea to the world.
We are here to tell you, that anything is possible no matter how big of an idea you have and how little resources are at your disposal.
If you would like to join our platform, please apply to the beta right now and get started.