Success is basically what we all crave for directly or indirectly, we all want to be successful. Stories of how a team of well-funded tech entrepreneurs who strike gold with their revolutionary new application and how these teams or startups fail is basically what we see in articles and news these days.
According to Small Biz Trends only 3% of newly startups makes it to the 5th year.
Appreciating and understanding these reasons for startup failures is crucial especially for young and vibrant entrepreneurs who are looking forward to venture into the tech ecosystem.
However, as we already know, starting up a company from scratch and nurturing it grow is not easy and we are band to screw up and fail.
We will be looking into the possible and common reasons most startups fail
There really is no company out there today that will boost of starting alone without a team, team is in fact the one of the major keys that either builds or lead to the failure of that startups.
So the type of team you are starting up with will determine if your business will make it past the first five years or not.
There are many things that could go wrong with a weak team like giving up easily, wrong decision making. It is very important to choose the right team for your startups because with the right team, easy giving up won’t be a reason for failure.
In my next article, I will basically be talking and listing out some few solutions to tackle the mistakes most startups make.
NO MARKET FOR THE PRODUCT
The late, Steve Paul Jobs once opined and I quote “A lot of times, people don’t know what they want until you show it to them.”
But this isn’t always the case. Even though all founders and startups would want to believe otherwise.
Most startup put their products or services out there, properly investigating if their products or services is really needed and if in actual sense they have an audience for that product or services.
When thinking about your product as startups, first consider if truly you are solving a widespread pain point and is there an audience that is interested in what you are offering? Is your product or services something that is nice but doesn’t really solve a problem or an absolute necessity?
Most startups tends to view competition just as an average person would, that it is the process of producing the same or similar product or services with a different company and trying to get or reach more audience than those other companies, this isn’t always the case.
As startups, bringing users from a different platform to yours that’s what competition for startups really means. An average users spends more time in social platforms like Facebook, Twitter, Instagram, and others, there are not looking forward to add yours on their daily list.
So finding a way to bring them away from these other social platform to your site is what competition really means.
Questions like why would someone want to leave a product or services he or she is familiar with for product he or she barely know?
NOT CUSTOMER CENTRIC
Your targeted audience has a whole lot of impact on whether you will make it through the first 5(five) years of starting up or not.
Even though we tend to sometimes believe that our products or services are unique and as such we don’t really need our customer’s feedback, well sorry to disappoint you, because that’s a great and wide road to failure.
William Henry “Bill” Gates once said and I quote “Your most unhappy customers are your greatest source of learning”.
Most startups fail because they fail to obtain their customers feedback and constantly testing and adapting the products or services to fit their customer’s needs rather than falling into the trap of building the products or services for themselves.