These days, we see startups and new business ideas being started by different people in different fields. Many of these ideas, although very unique and interesting, will fail soon. but why? Entrepreneurs and startup experts have listed the most important reasons that will lead to the failure of your startup. If you are also looking for entrepreneurship, knowing this list will help you a lot.
Reasons why your startup will fail
In order for your startup and idea to succeed, you need to be able to consider all aspects of the customer’s needs, advertising and marketing, bids and costs, teamwork, and so on. The most important reasons why your idea and entrepreneurship fails include the following:
1. Do not pay attention to the time of product presentation
If your idea is very pure and unique but presented at the wrong time, your startup will undoubtedly fail. For example, imagine that your idea requires a high-tech tool that is not yet available to everyone. This will make your idea less popular.
2. You do not have proper advertising and marketing
Another very important factor that can lead to startup failure is the lack of proper, professional and principled advertising and marketing. Keep in mind that as important as the quality of your product or service is the marketing and presentation to the customer. You need to be able to plan your ads professionally and accurately and be able to introduce your product or service to people.
3. You do not have enough capital or an investor
Another important factor that can cause startup failure and an entrepreneurial idea is not having enough capital. You need to plan financially for your smallest behavior and move from start to finish and set aside the capital needed in advance. Keep in mind that even if your business is profitable, you need the right investor and investment to increase the comparison, increase the customer and enter the big markets.
4. You do not have an exact business model
Any idea that wants to lead to a successful entrepreneurship and startup needs a precise and principled business model. In this model, you have to plan for a specific period of time, short-term, medium-term and long-term. In this planning, you should consider financial issues, customers and market needs, sources of income, business development, potential failures and challenges, etc., and have an accurate business model.
5. You do not have an efficient and professional team
According to surveys, the reason for the failure of 23% of startups is the lack of a professional and efficient team. Keep in mind that from the beginning you will face many unforeseen and anticipated challenges and problems that you must have a team with professionals in various fields to succeed in them. If your team consists of your friends and relatives regardless of their capabilities, sooner or later wait for your startup to fail.
6. You do not pay enough attention to the quality of your services and products
Another reason for startups to fail is to provide a poor quality product or service. Today’s market is fiercely competitive. In order to beat the competition, you need to be able to offer high quality products. The slightest disregard for the features of a product or service will cause dissatisfaction among people and in a short time will lead to startup failure.
7. You do not have enough information about the market and the needs of your customers
Many people in the beginning of a business are looking to meet their needs rather than the needs of society. This will undoubtedly lead to the failure of your business. If you have an expert team, strong investors, use advanced technologies and even your product is of sufficient quality but does not meet any customer needs, it will be doomed to failure.
8. You do not pay attention to the initial feedback
If you pay attention to the progress and success of businesses and big ideas, one of the most important factors is to provide a test product and pay attention to the initial feedback. You may be afraid that someone will steal your idea or misuse it. This is a natural concern, but keep in mind that offering a test product can help you familiarize yourself with the strengths and weaknesses of your business and enter the market with more strength before you start serious business.
9. You choose a business where there is a lot of competition
Another reason that can cause your startup and business to fail is to enter a highly competitive field. As soon as you introduce your business, your competitors will feel threatened and they will take serious steps to stay competitive. About 20% of startups will fail because of this.
10. You do not price properly
It is natural that you want to consider a price for your services and products that is profitable for you. If you are looking for profitability more than anything else, you may be offering a price for your product or service that is not acceptable. According to surveys, choosing a reasonable price of up to 18% can lead to the failure of your startup.
11- Lack of coordination and consensus between the team and investors
Many people think that investors only fund and should not interfere in other matters of idea and design, while investors know that they have the right to be aware of everything that happens and to comment on it. This can gradually destroy the coherence of the work and lead to problems and failure of your startup.
It is best to schedule periodic meetings for members to collaborate with investors from the beginning. Have a friendly relationship with each other and try to work together to solve the leading problems and challenges.
12. You will soon lose your passion and perseverance
If you listen to successful entrepreneurs, you will hear from all of them that they have failed many times, have been ridiculed many times, and have constantly heard from those around them that their idea is impossible! If you want to be a successful entrepreneur, you must ignore all the negative things you will hear from those around you.
You need to know that you may fail many times, gain experience and rise with more power. Loss of enthusiasm and perseverance for various reasons has led to the failure of many startups and pure ideas that are only a few steps away from success.
13. You are not flexible
Another factor that will lead to startup failure is the lack of flexibility of the owner of the idea and the team. You may have a multi-year plan and business model for your idea, but some time after you start, you realize that your plan has flaws. If you are afraid of change and can not change parts of your plan, your startup will undoubtedly fail.
14. You do not pay attention to legal issues
Another important factor that can cause your startup to fail is not paying attention to legal issues. From the beginning, you may face complex legal and financial issues such as tax problems, brand registration problems, company registration problems, and so on. Lack of sufficient legal information and wrong actions in this regard can lead to the failure of your startup and idea. So take having a good legal advisor seriously.
15. You get too tired
Undoubtedly, in order for your entrepreneurial idea to be successful, you must try and persevere as much as possible, but do not work too hard on yourself! Remember that you have a long way to go before you have to act with power and authority in all its stages.
If you consume too much energy from the beginning, you will get tired in a short time and you will not be able to face the next challenges. You need more than luck to succeed in affiliate business and you need more than luck to succeed in affiliate business.
16. You are unaware of the geographical location
Even geographical location can affect the success or failure of your startup. Geographical location can be examined from different aspects.
The first is that your team should not be from just one city and one geographical location. Having different members from different cities will benefit you in two ways. First, you will have a team whose members have different mindsets and attitudes that will help you better manage the challenges ahead.
Also, if you want to expand your workspace, people in other cities will have more confidence in their fellow citizens’ ads, and you can grow your business in less time than your competitors.
17. You have no plans for the early maturity of your business
You may be surprised to learn that many businesses and startups fail when they start to grow and succeed. But what is the reason for this? If you follow the plan as planned, there is less worry, but sometimes businesses will mature prematurely! Early maturity means that your business is growing faster than planned.
At this stage you find yourself between earth and sky and you can not manage the situation. It is better to plan for these situations in advance so that you can manage them well if you face them.
18. You do not have a good relationship with your team
Unfortunately, the reason for the failure of startups in many areas is the lack of a good working relationship between the team. If you want to be a tough and mischievous boss so that the team members can hold you accountable, you can be sure that your startup will fail. You need to be able to build a spirit of cooperation and empathy among your team members so that they, like you, can work hard for the success of the idea.
19. Lack of attention to customer feedback
Another important reason for the failure of startups is the lack of attention to customer feedback. These failed ideas have no channel or way to communicate with their customers to communicate directly with them. In these cases, you can not get acquainted with your strengths and weaknesses from the customers’ point of view, and as a result, you will stay in place for a long time!
20. You do not have enough focus on your work
One of the principles of success in any job is to focus precisely on the job. Unfortunately, this perspective often causes us to become overwhelmed when it’s time to start a new business. In order for your startup not to fail, try to focus enough on your work instead of focusing on marginal issues.
Conclusion
Research shows that about 90% of businesses will fail in the first 5 years of their operation. The failure of startups can have various reasons in the field of finance, ideas, lack of attention to the market and market needs, lack of quality, lack of business model. In order for your startup not to fail, it is better to get acquainted with these reasons.