Today we will discuss why startup fails in 3 years of the journey? How to make your startup successful by TryDigital.
Nowadays we heard lots about the startup companies and their innovative and out of the box idea but now you also heard that most of them failed in 1 to 3 years of journey.
If you can’t try, you can’t fail or succeed then you can’t experience. Believe in your idea, Keep faith in your strategy and team management but still most of the startup & small business failing measurably.
Believing in your idea is great to start but also keep mind few things, understand the market, do a survey , take some realistic data , analyze the potentiality, don’t quit your settle job at an early stage of an idea & make financial plan for your personal life for the next 12 months means keep financial backup.
Life is uncertain the same way startup business is uncertain but you have control on startup. If you have control then let’s start & see what can be done to make your startup successful. or the reason for the failure of a startup business.
Reason -1 Business Plan.
B-plan is very important any business but most of the entrepreneurs consider the b-plan as a waste of time either if he will make for some purpose then it will be less informative. Founders never look the b-plan once they made at the initial stage of business. They never update according to business move and requirement. After a few months, they even don’t remember why they started the business.
Solutions of B-plan.
Make a business plan with all the positive and negative projection even consider the worst scenario. Don’t be over-optimistic about the idea. Consider a few things positively
First of all, make an exit plan.
Make plan more informative.
List about all the possible expenditure and run the business according to it.
if plan change in midway must update Bplan according to it.
Make a marketing plan before starting the development of product and services.
Reason-2 Fail In Execution.
90% of business fail in execution. you have a great idea, developing a great product, will manage great service but execution timing will be wrong then all effort will convert into effortless. Execution plays a vital role in the startup journey.
Solutions of Execution By TryDigital.
Keep business plan updated and describe all execution parts in it. Be on time, make the deadline in your business plan, make a short goal and fulfill on time, never underestimate anything in business. Talk with the team regularly and make them enthusiastic about.
Reason -3 Mismanagement.
If you have a great tech team, great marketer, great graphics designer, great accountant but if your-founder, co-founder & other management member doesn’t have such credibility then startup measurably fails before flying.
Solutions For Mismanagement.
Schedule meeting always with all board member on a regular basis, talk about marketing, product development status, talk about funding status, cash in hand position and how will execute. Distribute the responsibility according to talent in each of the key people. Ask every key people for their opinion and write down in a business plan.
Reason -4 Marketing Strategy.
Marketing play a key factor in a startup, you have great product and service but you can’t market it properly then how people will know about it. All the startup fail in marketing. The measure reason behind the failure in marketing is a lack of experience. If you have co-founder from marketing then you will be the lucky one to manage marketing without any issues either Entrepreneurs take marketing lightly at an early stage of business.
Solutions of Marketing Strategy.
Marketing is not one day process to start and stop. you need a dedicated person for that and now marketing becoming digital marketing. you can’t do it all alone.
If your marketing strategy will be average your business perform poorly. So be the best in marketing strategy and write in details in your business plan. Don’t hesitate to talk with an expert for promotion for your product and services. Marketing requires strategy more than budget, You can’t win a customer with money investment only.
Reason-5 Funding Issues.
You can’t run a business without money in this era. We are not saying you should have 10 Lakhs in the pocket to start but at least you should have a minimum of 2 lakhs to start further depends on your industry and startup business types.
Founders start a business with their own money also called bootstrapped funding and run a business successfully because they know in hand cash position. But when you have a broad plan and mentioned in a business plan that after 3 months of operation you require a fund for expansion or promotion of product and services and suddenly market get down or investor is no longer interested in your plan then you fail to stand because you made it business plan to raise fund and sustain.
Solutions For Funding Issues By TryDigital.
First of all, don’t make a business plan for fundraising from an outsider. if your business requires such fund to survive and run in future then make a secondary plan to raise fund like Bank, another financial institute. Before investing your little money for such startup make sure about your business idea. Do some research, talked with an angel investor or other investor, banks, etc.
Reason-6 Product And Services Problem.
Another reason is the entrepreneur failed to develop product and services according to market needs! People are not interested in such product and services might be due to bad timing, too late or too early.
Solutions For Product & Service By TryDigital.
Before execution runs a survey and asks people for feedback through digital media marketing. In the survey might be you lose little money but it will save all efforts and money.
Reason-7 Competition In The Market In 2019.
If you’re not planing out of the box or your business fall in the same category of other business then you will get high competition from other player and this one is also a big problem to fail.
A solution of Competition By TryDigital.
Check your competitor product and services’ features and make your business plan according to it. If you have a capability to fight with existing business then start either thing new pattern in same business like do research and check what they are missing and what people needed.
Add more value in your product and service to give him competition at an early stage of business. Another best way to win is to start a pricing war. Sell your product and service at the lowest cost with good quality.