One prevalent thing in business is the failure of startups. About ninety percent of startups end as quickly as they start. This failure is due to a myriad of reasons. At reviewsbird.co.uk , you would find some persons discussing what could be the causes of the failure of these Startups. We have done a lot of reviews about startups, and from our findings we would be sharing six major reasons why startups fail with you. Below are the six major reasons:
1. Lack of Skills:
It is not strange to find people venturing into businesses knowing full well that they have little or no knowledge/skills regarding such businesses. The entrepreneur tag is so enchanting that people wear it without developing their business skills to the right level. Imagine a seller expecting to sell large volumes of his goods and services online with little knowledge of social media marketing. How would such magic be performed? At the end of the day, that business person eventually goes out of business within a very short time due to poor business skills.
2. Ignoring Customer Needs:
This is yet another leading cause of the failures of startups. You should take cognizance of the fact that customer satisfaction is very important in business. But most of these Startups tend to focus more on actualizing their own goals and profits without putting the needs and complaints of the customer into good consideration. Doing this not only makes you lose a customer, it takes you steps closer to business failure too.
Consistency never goes out of style in business. It makes you keep on running your business even when everything looks bleak. You know, starting a business requires a lot of patience and dexterity. You can’t start a business today and expect to outdo those who have been in it for a very long time. Such people have mastered the secrets of business and they have gained more experience than you. So, they tend to do better naturally. Comparing your startup to them only dampens your hope. Stay consistent too and watch your business bloom.
4. Lack of Capital:
No business can function effectively without good funding. Money is needed to run a business. A lot of Startups fold up when the required capital to ensure a smooth running of the business is not available. This is why we advise that they start with a capital that can be easily regenerated after a short time. Startups that involve large sums of money find it harder to keep up when profits do not come in as planned. It is no news that business can’t be predicted exactly owing to constant fluctuations in the market.
5. Poor Marketing:
It is one thing to produce the best products or render the best services and another thing entirely to market it to people that need them. Friends and family may not be the right people to market your products/services to. This is where poor marketing comes in. What is poor marketing? Poor marketing is when you don’t show what you have to offer to the people that need them. Now that you know what poor marketing is, quickly step out of whatever comfort zone you are in, take your time and market to people that would give gold for what you have to offer.
6. Poor Leadership:
A lot of startups fail because of poor leadership. It ruins a business faster than you can imagine. Even if you are the owner of the business, you don’t have to be the leader if you have no leadership bone in you. Hire an expert for your team instead.
Having read these major reasons for the failure of startups, take your time and plan well before you venture into business. This way, you would last longer and as well optimize your resources and customer satisfaction.