3 Major Reasons Why Startups Fail
Nobody likes disappointment or failure, especially in the newly launched business. Research has found that about one-fifth of new startups fail within the first year.
Following are 3 of the most popular reasons why startups flop in their first year and how you can ensure your business isn’t one of them.
Reason-1 Poor Branding & Marketing
“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.”– Jeff Bezos
A brand identity is a way you define your business to your audience. It represents the core of what your business is and what you value. It’s basically everything, your tagline, your advertising and the overall look of your brand.
When it comes to startups, it’s even more important that you build a good identity on the web. Many startups fail to impress its audience simply because they do not represent anything different.
Also, Noise matters!
No matter how extraordinary your product and service might be, it’s going down if nobody thinks about it. Poorly managed advertising (or sales) is a noteworthy explanation behind the disappointment of many new businesses. You don’t really require an expert PR group towards the start, however, you have to make buzz online.
Reason-2 The absence of a clear strategy
“A vision without a strategy remains an illusion.”-Lee Bolman
Various founders of a startup can’t do alone what is required for a business to take off. They should concentrate on ventures that esteem their aptitudes and educational background, other than their expert skill. This will help their chances of progress and the training and commitment they will infuse in the business won’t be a burden for them. Your abilities must be supplemented with the ones of your group.
Always have somebody great at sales, somebody great at the management and accounting, somebody great at promoting and somebody great at product improvement. If you or your prime supporters come up short on the skills or capacities expected to get your organization moving, make certain to recognize those requirements at an opportune time and read, think about, learn and encounter hypothetical and down to earth information that can give you the high ground against your rivals and keep your organization from slamming. Do not make your business fall.
Reason-3 Focus only on building and not on the customers
“Your most unhappy customers are your greatest source of learning.” -Bill Gates
A business can never put too much accentuation on its customers. They are the foundation of any business” success. One of the essential objectives of any marketing strategy ought to be to identify and address the issues of the customers. Considering client significance at all phases of the marketing process causes your business to guarantee more prominent consumer loyalty and increment its long-haul objective of repeat business.
As we have learned the three major mistakes, it’s time to know how you can prevent those mistakes from happening. Let’s face it, everyone needs help. Regardless of how small or large, your business is, you need a team to be your helping hand in order to achieve what you want to.
Entrepreneurs who don’t believe in taking help will continue fighting huge wars for average results.
And eventually, affect their own business badly.
But the good thing is that you don’t have to be one of them. You can reach way higher.
The road there is free and open. Choose success over failure. Choose customers over products. Choose a strong building strategy over poor branding strategy. Choose predictable growth over “too much, too soon” If you’re able to prevent these mistakes, then you’re setting yourself up for major success.
Own a startup? Branding By 8, is a specialized branding agency based in Dubai. We can help you transform your business by developing a proper brand strategy and identity that connects meaningfully with your target audience. Visit Brandingy8.com today, to find out how we can help your business!