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Why do startups fail? - Mogul

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Whydostartupsfail?

chloemiller
over 1 year Story
Why do startups fail?

Not all are destined to succeed. Many (business) sailors are lost at the sea of failure. The reasons for this are numerous, ranging from the wrong people to bad ideas and markets. Some of these factors you can influence and change, while others are out of your control, such as, for example, natural disasters. In this article we will focus on the first group, and if the situation seems familiar to you, try to remove that problem immediately.

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Lack of a plan

The worst thing which can happen to your (metaphoric) business ship, is to sail without a map and compass. If you do not know where are you, nor where are you headed, you will probably be lost at sea. There are those who manage to find the port out of pure luck, but those cases are so rare, that we can neglect them. Also, a direction and destination are needed before you start sailing, but if you manage to realize where you are, and where you need to go, maybe everything is not lost.

Lack of money

Another gruesome thing which can happen is spending all of the initial capital. Do not be fooled, this is caused by two things, and both are founder's fault. Not monitoring your finances is unforgivable, how can you waste hard earned money, and not even know where it went? Every cent must be spent for the right purpose, and wisely. The other cause is not enough money invested at the very start. To solve this, you must calculate everything. Investment, salaries, up to the last paperclip you need to buy, everything must be calculated and put to paper. If these two are nicely combined, then there is less worry.

Lack of identity

If you are not different than others, how can you expect to succeed? If you cannot stand out from the crowd, you will stay there, just another name in the crowd. To avoid this, do whatever it takes, just to be noticed. It is a sorry thing to say, that there is no good or bad marketing today, just popularity and anonymity. If it's simply “being that crazy company where all the employees wear green on Wednesday”, do that. Let it be your trademark and a way to express yourself.

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Lack of persistence

Many people give up at the first try, or at the first sign of trouble. This is a bad attitude. Instead, give your best, do everything you can, so that your business succeeds. The beginning is hard, that is true, but you must endure through that tough period, because “if it is too easy, you are not doing something right.” Hard work and devotion backed up with a great business plan are rewarded, rather than pure luck or lack of motivation.

Lack of contact with the customers

Sooner or later, small business owners have the idea that they do not need to listen to the customers. Those people are not small business owners anymore. You must listen to the feedback from your customers. Their suggestions, complaints, those are your guiding lights. If you are uncertain how to gather this data, you can always set up an online questionnaire or take a look at ProOpinion Blog for some nice advice. 

Well, when all of the above are taken into consideration, we surely hope that you are not in any of these situations. Still, if you find one or two alarming situations, correct those issues immediately, for there still might be hope.

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