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6 Startup Mistakes Making Them Fail: What to Do to Avoid Them

The possibility of creating something entirely new attracts many people: and each thinks their idea will change the world and become demanded within hours. However, numerous projects close even before consumers know about them. Take a look at the points below to avoid the most common mistakes!

No Business Plan or Project Model

Those launching a new company often believe it is enough to briefly describe their idea, and investors will line up to sponsor the project. However, this is far from the case since people ready to invest their funds will definitely require presenting an action plan, future strategy, and detailed calculations about the payback of the idea, its prospects, and potential profitability.

So, it’s essential to proceed with a detailed strategy: don’t forget to consider the possible market changes and come up with several plans for different situations.

Forgetting About Proper Marketing Strategy & Advertisement

Weak marketing is one of the main reasons why even giant companies stop their activities. Many founders consider their products or services so genuine that they won’t need any advertisement. However, every business, whether an online bet casino, real estate agency or a successful Internet store, should know that around 25% of the whole budget should be set for marketing expenses.

This is especially important for a start-up organization since no one knows about you yet. Think about the entire strategy competently and demonstrate it to investors – a long-term plan will give more chances to attract capital from outside and the demand for the project among consumers.

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No Proper Understanding of the Target Audience

Building a successful startup is impossible without drawing a portrait of your future client. Many companies state that their products or services are made for “young ladies,” which is a wrong approach.

So, it’s important to provide thorough research; the more details you provide, the better. If you know who your product is aimed at, you can understand what a person wants and how to reach them to develop a more successful strategy and promotions.

Lack of Motivation in the Team

It often happens that the project is good, but it is not possible to implement it due to the inappropriate team. Incorrect delegation of duties, disagreements within the group, lack of clear rules and separation of duties, and so on can often lead to conflicts and inefficiency of the company.

The right employees easily solve such problems: the market is full of talented guys who are ready to work on just an idea, so it’s important to provide them with proper motivation. It goes without saying that it is vital to divide all tasks and schedules correctly, but there is one more thing: always listen to your employees.  A person who has just come to the startup may offer new solutions to make the project more successful.

Wrongly Calculated Investments

Many newly launched startups avoid calculating the necessary expenses and set a random sum, which is often too high. And it’s not surprising that it repels investors, making the project seem too expensive and unprofitable. So, correctly counting all costs up to the cent is a must when you are developing your idea.

Lack of Developed Project Prototype

And again – only an idea is usually not enough. Presenting your startup to potential investors is one of the essential points that significantly influences its future success. Remember that those ready to invest money in your project would like to see the product you’ve invented. So, to create a more favorable impression, let people try it first and know their reviews.

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