July 11, 2018

3 Reasons Why Startups Fail

Common mistakes that ruin new businesses
Many first-time entrepreneurs make pretty silly mistakes that ruin their business since the very beginning. Lack of experience is a popular reason that causes it.

Newly-made businessmen don't even guess about some issues. In the end, they never invest resources to solve these troubles when there is still a chance to change an approach.

In the given article you will learn three most common pitfalls startuppers face with and what decision options exist.

1 - Simplification

We live in a world of simplification where majority people don't pay attention to details and don't try to meet customers' demands. Many entrepreneurs launch new products fast for further selling them quickly.

Startuppers don't strive to learn new skills and mostly provide bad customer experience. This is one of the reasons they don't survive.

How may this issue be resolved?

  • Customer-first business. Your business exists only to improve customers' lives. Make your products to bring joy.
  • Attention to details. Before you launch a product check it as customers do. Focus on decent quality.
  • Never-ending learning. Learning is the best solution for simplification problem. Provide value to your customers.

Try to change your line of thinking. Practice controlling quality. Succeed in one field and then move to another one.

2 - Ride Off in All Directions

First-time entrepreneurs generate ideas fast, add a countless number of new products to their online stores, update their mission constantly. Are the ideas that much brilliant to implement them here and now? No, in most cases they aren't.

It's important to perform tasks where you're an expert and not try to run after two hares. A sad result is expected to happen in this case.

Newly-made entrepreneurs need to get the name too and not earnings only. Getting the name is driven by the constant improvement of skills, products, and services. This way your customers will treat you as the best supplier of certain products.
3 - Neglect Secondary Tasks
A wrong comma on a product page is not a problem for beginners. It's a secondary task which is not worthy of any attention. An incorrect link in the profile of a social network or one negative feedback from a customer may seem to be little things. However, there is nothing below notice in a real business. All the issues are equally important. They should be solved before they evolve into a big trouble.

Even small technical troubles, misprints, slight mistakes of employees or partners affect brand perception and associations with your company. It's important to protect your brand since the very beginning, lend credibility to it and solve any troubles fast.
Optimism Harms Management Decision
In most cases, entrepreneurs have much confidence in success at the beginning and there is a shocking percentage of failure in the end. People are inclined to think there are good chances for success before they actually start their business. They often find arguments for this idea.

In practice, while being in a very elementary stage it's recommended to make a list of reasons why startups fail. Answer the question "what may kill a startup?" and analyze responses. Surely there will be external reasons (market, competitors) and internal ones. Luckily, a number of internal issues prevail which means you may control failures.
What Conclusion can we Make?
When you start a new business, avoid common mistakes no matter how insignificant they seem. Think through every touch point with your customers. Select one idea and implement it. Don't ignore minor troubles. Strive to stand out among the other market players and be better than majority startuppers.
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Gulnur Ismailova
Content Creator at Dropwow