Start-ups give entrepreneurs all around the world an opportunity to turn their hobbies and interest into a business that yields them a livelihood. An entrepreneur may face difficulties with start-ups even if they give it their best and sometimes fail. But don’t give up yet if you have something amazing to share with the world, go for it. Don’t be discouraged by the number of times you have tried and failed but be inspired by the number of start-up success stories out there.
What is a start-up?
A start-up is a young company that is in its beginning stage of developing and blooming. It is usually small and operated by a small number of founders or individuals.
Let us look at 5 reasons why start-ups fail
1. Unappealing product
One of the major reasons a start-up may fail is the product or service offered proving to be unappealing to the customers. A product will only sell in the market for the following reasons:
· It solves an existing problem in the market. For example, an umbrella caters to the needs of people mainly in the rainy season.
· It is creative and innovative enough for customers to purchase it more than once if required.
An entrepreneur must have knowledge of the trends in the market to know what the customers want.
2. Ineffective marketing
At times a start-up may have an excellent product or service to offer to its customer but will still fail only to realise that the target market set for the product/service was not even aware of its existence. Hence it is very crucial to have a strategic marketing plan of how one intends on advertising the product, distributing the product or even positioning the product.
3. Poor management team
The beginning stage of a start-up is most crucial as it strives to gain the trust of its customers with limited funds and a small team managing and operating the company.
If the management team underperforms it will slow down the growth of the company. Therefore when you do look for a team, one must look for the best talents fitted for the requirements of the job.
4. Poor timing
An excellent product offered by a start-up can also fail due to its bad timing. If a product has a purpose and is introduced to the market in the season where it doesn’t serve its purpose the product will still fail.
5. Not customer centric
At the starting stages of a company, a customer is always sceptical of its product since that would be their first time trying the same. The problem arises when the company doesn’t pay attention to the customers’ feedback on the aspects that the product lacks.
Having a start-up may sound like a very difficult job and for most it is, but so are so many decisions and phases in life. With the right knowledge and strategies one can turn his dream of being an entrepreneur into a reality. Are you ready to be an entrepreneur?