Failures are a part of life, but this part of life is not acceptable to everyone. Every year a lot of startups shut down due to several reasons and end up loosing so much time, money and efforts. So, if you are planning to start a new business do have a look at some of the common reasons behind the failure of so many startups every year.
1. Market
A market is a big factor for the failure of many startups. Startups having a great idea, vision, and team sometimes fail because the market is too narrow for the growth they are seeking for and end up in the scenario of lack of demand.
2. Money
Money is the most common reason for the failure of startups, most of the companies don’t have the idea of expenses and they lose money regularly. If there is a sudden market crash the companies running on high loans decide to shut down the business very quickly.
3. Team
Human resources are considered vital for success in any field. If the team is not working in a particular direction or if someone from the management is not focused on the work, there are chances that such startups will not remain for long in the market. The working team should be very hard working, innovative and flexible to work in difficult times.
4. Product
A product or the service that startups sell to the consumers holds high importance in both the success and failure of any business plan. A product should be apt in everything from quality, packaging to price. There should be no confusion on what quality of the product should be sold in the market at which rate and which audience should be targeted to sell that product. A lot of time entrepreneurs bring the products which have very less or no demand such things should be avoided.
5. Marketing
We are not denying the power of team, product, and money but these are also not complete without proper marketing. Most of the quality products fail to reach to their customers due to lack of marketing. Most of the entrepreneurs do not know how to use money correctly for advertising and marketing purposes. Use social media correctly, communicate with the influencers of your industry, talk with local communities about your idea.
6. Competition
Many times startups tend to ignore the competition as they think that they are the only one with the idea but this is not truth, ever since you start your venture there are people who just take advantage of your idea and provide a better product to the market, so one should never make the mistake of ignoring the competition in the marketing they are working in.
These are some common mistakes most entrepreneurs do when they start a new business, make sure you can learn from all these and try to avoid these as much as possible.
