We all do know and are aware of the fact that startup fails and do not succeed that easily. And around the world Silicon Valley it has become common that 90% of the start-up to fail. No one will ever start a business expecting that it will fail. In order to understand what leads to a failure, we have compiled top 7 reasons as to why the starts up fail and how you can keep them away from damaging your business. Let’s have a look at it below.
1.Starting your business with a wrong reason: Is your primary reason for starting a business of your own is to make money. Do you like all the others also think that if you have a business of your own, you will have enough time to spend with the family? Or maybe you don’t have the answers like anyone else. Though these are benefits that the entrepreneurs achieve after a few years of their hard work these are not the right reasons to start a business of your own.
2.Not managed in a right way: The reason why startup fails is due to poor management. New business owners frequently lack businesses and management expertise in some of the areas like finance, production, purchasing and selling, and the last but not the least hiring and managing the employees. Unless and until the employees recognize and know what the business is all about the business owners will continue facing a disaster. And in order to avoid the problem the business owners can educate themselves on the skills that they have been lacking behind, hire skilled employees and the last but not the least outsource their entire work to competent professionals.
3.Market Problem: One of the major reason why companies fail even today, is because they run into a problem of being a little or no market for the product that they have built. The market timing here is wrong and you will be ahead of your market by a few years and they might not be ready for the solution during this specific period of time.
4.Insufficient amount of money: Most of the time why the smaller business organizations fail is due to having an insufficient amount of money. Business owners don’t understand the cash flow nor the fact about how much amount of money they would require for a startup, due to which they are forced to close before they have any chance of succeeding.
5.Over-expansion: This generally turns out to happen when business owners confuse with success and see how fast they can actually expand their business. So as a good businessman focuses on the slow and steady growth process. Many have led to a major bankruptcy when trying to expand their business. So have a proper research done in order to know what leads to proper expansion of a business and then go ahead with it.
6.The location of your business: Your business location is something that matters the most. A good business location can help a poor business survive and thrive, whereas a bad location can lead to a disaster and close down of the business enterprise. So try and consider some of the facts like where your customers are, the location and the competitors, conditions, and safety of the building and more.
7.No Website and no social media presence: If you are planning to start a business of your own, or have already started then the very first important thing you need to do is have a website and social media presence. You need to make sure that your website looks professional enough as this enables the users to find out more about your business as well as the product and services. Also make sure that your website has all the required information mentioned, and is been listed on Google local listing so that users find you when they are searching for you.
To conclude When it comes to the success of any business, it is you thus business owner who knows how to lead it to a success. So if your company is doing the above-mentioned mistakes then avoid before its too late, and choose the right way and see how success will come following you.
About the Author:
Gurpreet is a content marketer, a writer by day and reader by night. She loves to keep her self-updated about the Indian film industry as well as the upcoming films, stories, gossips as far as there is some information in terms of political and entertainment inside. You can connect with me at upcoming cinemas to stay connected with the Bollywood world.