Although, Google will return thousands of results for the search term 'why start-ups fail' only a handful of them share useful information. An interesting article on the Forbes Magazine listed many reasons that could lead a startup to its failure. Now you can start a business without committing the major startup mistakes with our startup resources. Read to find out how:
#1: Small, Unsalable Data Leads Startups to failure
George Deeb, author of the Forbes article, observed that “Investors tend to bias ideas that throw out largest nets possible.” What does this mean to you, the startup aspirant? In layman's terms, it means you are probably working on an idea that is too generic, a product that everyone wants to buy. You are probably ignoring that you can customize the product to a niche market. For example, you can create luxury soap rather than budget soap or you can offer your services to construction companies instead of every multinational company.
#2: Lack of data
Many startups are so confident to start a business because they think their product is 'one of its kinds’. They fail to foresee the tough market conditions waiting for them. Lack of real life experience coupled with poor research data is recipe for disaster. Are you sure you have all information you need to go ahead and start your business? Do you know what your market is, who your customers are and how many units you can possibly sell? iGoStartup's startup resources can find these answers for you; without spending a fortune on market research.
#3: Failing to find ways to source growth capital
When you decide to start a business, you will be focused on launching your product. For most newcomers, the products ‘will sell’ and the money for expansion will come from the initial sales. From a business standpoint, this is a highly unlikely scenario and a backup for capital to keep your business running is essential. Our start-up package can help you with budgeting, plan your finances and strategize how to raise capital for each phase of your business. With our online business tools, it will be a lot easier for you to present your proposal to investors.
#4: iGoStartup startup resources help you to stay on track
When you start a business without market research, you are highly at the risk of losing track of what you are doing. You will lose focus on what to do next and how to keep your business moving forward, a major reason why many startups fail. Some examples include failing to identify/focus clientele, choosing the wrong distribution channel and prioritizing the product placement.