Majority of new businesses/start ups fail within the first 3-5 years of starting. Why?
There are a lot of reasons why these start ups fail; in this post we have highlighted a few of them.
SELLING THE WRONG PRODUCT
Putting out a product without actually confirming if it is the right product for the market at that time is not totally a good idea.
When working on your product, you have to put into consideration the current need and who your target market is; which is why you need to conduct a good product testing and market research to measure the feed back and how they’d interact with your product.
BAD MARKETING STRATEGY
The success or failure of your business is based on your marketing strategy.
How you sell your products/service to your customers is very important.
Also, knowing your potential audience and how to get their attention to your product is the key to a successful business.
FOCUSING ON SHORT TERM; NOT WORKING TOWARDS LONG TERM
A lot of business are too quick to running a business without thinking about the fact that investing time, commitment are one of those things that makes business long term.
Most business owners these days start business with the motive of making money quickly, being called ‘CEO’ and as a means of escaping a ‘9-5’ job.
Starting a business with a long term goal means, you’re passionate about providing a need or solving a problem.
INSUFFICIENT FUNDS OR LACK OF INVESTMENT OFFERS
A business without a source of generating revenue, has a 50-50 chance of not lasting long.
Yes, raising funds for you business gives it an upper hand but lack of financial management skills is one of the major reasons why a lot of start ups fail.
Running out of funds to improve your business is one of the biggest mistakes that can ever happen to a business owner.
Try as much as possible not to spend on unnecessary things or things that aren’t within your marketing budget without measuring your returns.
Setting a budget is highly important!
LACK OF A STRONG LEADERSHIP/TEAM
This is one of the problems business owners face as having good leadership skills, influences your choice of team members.
You need to be able to sell yourself/idea for people to want to collaborate with you or work for you.
Leadership skills also varies from the numbers required for your business. It is not constant.
After listing these mistakes, it is very important to avoid things that’d make you repeat them.
You can either make the necessary research before starting your business or find a business mentor in your industry for guidance.
Follow this and watch your business grow!