It is safe to say that an overwhelming majority of us go through a phase in our lives where we think about start-ups company with some partners – whether family, friends, acquaintances or someone whose ideas and values resonate with yours. However, did you also know that almost a whopping 90% of the time start-ups fail within the initial three years, leaving behind just a corpse of an idea which could have been turned into a brand if it would have been initiated carefully, or assisted by an experienced digital agency or PR firm?
Start-ups have always been a base for establishing any industry. All the big brands that we constantly see and hear about today, were mere start-ups at their initial stage. They grew into a brand through hours of dedicated research, preparation, and execution that was brought out through an unbreakable bond of team members.
And then there was also many others who failed – who couldn’t live up to a certain vision or goal, tried doing too much too soon, had their priorities all wrong or just didn’t hire the right team to grow their brands. The list is endless, but so are the solutions to some of these very common problems with start-ups that fail. There is a line between success and failure and you are about to find out what that entails.
In this article, we are going to talk about and highlight vividly some reasons that lead to start-up failure, and how to overcome those initial hiccups and rise high on the ladder of success.
Ineligibility for Market Requirements
This is one of the most common reasons that lead a start-up to the doorsteps of failure. Shockingly, 42% of the start-ups lack market demand that prevents them from gaining the required traction they need to survive.
What is the remedy? Most of the start-ups are initiated as a plan between some partners that thought it as a need of the hour. A start-up is not just about opening a company and hoping it would become a brand. Rather, it requires a full-proof marketing strategy by PR firms or digital marketing agencies determining why it will be successful, till when it will stay successful, and most importantly, how it will become successful. When a business plan is initiated with a proper marketing strategy, it turns out to be fruitful.
And there are many examples to prove this point if you care to look around. If you hire the right PR agency or brand solutions company, they will not only help you realize your vision, but also ensure heightened awareness for your start-up. Plus, with consistent marketing efforts, your brand will reach heights that would not be possible without it.
Competitiveness above the Limit
We all understand that competition is one of the main elements required for the success of a brand. But, when the competition is cut-throat, it can turn out to be a reason for a start-up’s failure. Having a first mover’s advantage in any industry is always a good thing but when you already have some established names in the industry, a start-up can be pounded to the ground due to too much competition.
What is the remedy? While entering into an industry, it is always a wise decision to check the industry thoroughly and prepare a report on how would your brand emerge as a trend changer in an existing sea of great players. Thoroughly check all the aspects of the industry before you take the plunge.
This is especially more important these days given the plethora of start-ups that have taken over the market. And sadly, many of them either copy off an exiting successful establishment, or bring something that has absolutely zero value proposition, either in the present or the future.
Selection of the Wrong Team
Once you are done with the analysis of the market and have a check on competition, it is now time to assess whether the you have the right team to carry out the activities in the correct direction. A team of people who do not work as a contributing factor can lead any business towards failure.
What is the remedy? With a cohesive group of highly motivated, persistent, and diversely skilled people, who are united around a common vision, it can solve all the issues related to a start-up’s growth. It pays to have a team that connects with you on fundamental issues of work and even work culture. Moreover, having the wrong fit on your team can lead to loss of many productive manpower hours, along with the most valuable asset – your peace of mind.
Business Model not Appropriate
For any start-up to work and foster, the business model must be planned accurately. Lack of monetization strategy, focus on single-channel are some of the reasons that lead start-up to failure.
What is the remedy? A sound business model with confirmed ROI is the most efficient method that one can select for a business to flourish.
Lack of adaptiveness with Latest Trends of Marketing
In the era of digital marketing, the basic strength of a start-up’s success is being adaptive to the latest trends in internet marketing. Old school marketing is effective up to one extent but they do have some limits that would manipulate the growth of a business.
What is the remedy? The best method to solve such a problem is to match the percentage of old school as well as internet marketing and utilize it to work in favor of the business. There are several modules involved in digital or internet marketing and the best method to use those modules is to hire a firm that would lead you towards success through effective marketing strategies.
It is important for a start-up to look into these factors before taking their first step into entrepreneurship. Afterall, it is a huge investment of not just money, but also time and efforts. While it is sometimes unavoidable for start-ups to escape all these situations, with proper action towards the path of effective remedy can help eradicate all the obstacles on the road to shaky, albeit guaranteed and lifelong success.