July 20, 2016
Did you know that 90% of all startups fail? By all means, this is a staggering piece of statistics that can scare anyone planning to start a business. But what really goes on? Most of these businesses fail because their owners don’t invest the time and effort it takes to learn what it really takes to make a business a success. This article highlights the 10 top reasons why so many startups are crashing into oblivion.
1. Lack of Market Need
However good your product or products are, your business is going to fail if there isn’t enough market need for it. This is actually the biggest reason why most new businesses fail. So if you’re going to spend your time, resources and hard-earned startup cash making a product, you want to make sure that it’s the right product for the market. Otherwise, you’re just going to end up wasting a lot more of your time, money, and energy. When it comes to starting a new business, you should conduct thorough research to make sure that whatever you want to come up with is something that people actually need and are willing to pay for.
2. Ran Out of Cash
Of course, this can be expected to be a major issue. Most startups rely on the founders’ own funding, which can get depleted within more time. The new business will need to spend money getting legalized, making its product(s), and promote in the market. If it doesn’t come up with new ways of replenishing the funding before it can start making good enough money, a new business is headed to doom.
3. Inadequate Team
Hiring the right folks can be critical to the success of a startup. Each employee’s contribution matters a lot when it comes to determining whether the business will succeed or not. It’s important that whoever is in charge invests the time and effort needed to bring onboard passionate people who will be willing to go the extra mile in order to make the business a success. When Amazon.com started out, it didn’t make money for the first few years. It took the extraordinary leadership of Jeff Bezos (who really believed in the idea of online shopping) to make it hold. Today, Amazon is the world’s leading e-commerce outlet.
4. Getting Caught Up
In a startup, the CEO often thinks that it’s his or her job to lead. They focus on delegating duties and roles, forgetting that even the smallest thing can mature into large problems. Some of the critical issues in a startup are those pesky details related to business process, scalability and business model. It’s inevitable that roles will mix. When the management fails to understand this, and sits on the roof waiting for everyone else to do everything else, there’s a high probability that the business will fail.
5. Getting Outcompeted
This is another key reason why most startups fail. They have a good product, and there’s market need for the product, but they just aren’t able to put up with the competition. The big brands spend more money to market their products as better and superior, and the startup gets trampled into nothing. Startup entrepreneurs should leverage creative marketing ideas that make up for the lack of adequate funds to promote their products.
6. Poor Product
Maybe there’s need for the product in the market, but it just ranks very poorly when compared to what the competition are offering. This is another key issue that most startup entrepreneurs really have to think about. There should be no compromise on product quality. Businesses succeed because their customers like the products that they are selling to them. So if you just make a less-than-impressive product and hope to make a run for it, you’ll probably end up failing.
7. Lack of Business Model
If there’s something wrong with your business model, there’s a high likelihood that the business will fail. Have it in mind that startups are delicate and the smallest error in terms of conducting the business can lead to doom. Spend the time to iron out your business plan and think out of the box when it comes to finding new ways to scale.
8. Poor Marketing
It’s no surprise that poor marketing is a major reason why most startups fail. How you approach your marketing can make or break your business. It’s important that a new business spends its marketing dollars wisely. If it doesn’t have the adequate funds to compete with the competition, relying on creative marketing strategies is probably a good way to go. All the same, have it in mind that how you approach your marketing is going to have a major impact on the prospects of your new firm.
9. Poor Customer Handling Skills
In any business, the customer is everything. If you don’t treat your customers well, then it goes without saying that they will drift to the competition. Most startups spend a lot of time, effort, and financial resources trying to procure new customers. In so doing, they fail to recognize the value of their existing customers. Have it in mind that satisfied customers can greatly boost your business through repeat business, positive feedback and referrals.
10. Failure to Use Network
A new business will obviously face challenges that it didn’t expect. If there’s no network or advisors to help out, things can go south. Startups should find a seasoned industry professional who can guide them in the right direction. This support can especially be essential when launching products, looking for funding and making major growth decisions. The likes of Google, Facebook and many other of today’s leading companies all relied on expert help to break it through the challenges of the first few years.
If you’re looking to start a new business anytime soon, maybe you should spend more of your time writing the business plan. Do you think that people are going to need your product? If so, do you think that you can price it well enough for people to buy in large quantities? Do you have enough money for marketing? How are you going to offset the competition? These are some of the key questions that you should ask early on.
July 8, 2016
If you don’t have enough money to promote your new businesses, a little bit of creativity might be all you need. Guerilla marketing is one of the few approaches that prove you don’t need money to make money. This form of marketing entails using low-cost antics to get exposure for your products and services, spending a minimum amount of resources and time. The success of any guerilla marketing campaign revolves around being able to understand the motivations behind your target audience. You want to be creative in such a way that you can leverage tools such as free media to pass enticing information out there. Below are some handy guerilla marketing tips for every business.
I. Master the Art of Viral Content
We all have seen it. That article that gets shared tens of thousands of times. That YouTube video that gets hundreds of thousands of views within just a couple of hours. Kick-ass content has a way of finding its way through the internet. When people see something that touches their nerves, either in the form of entertainment, controversy, gossip or just comedy, the natural instinct is to share it with their friends. There’s no magic button when it comes to creating viral content as a way to market your business. It’s all up to your creativity. Can you create some awesome video that will spread like wildfire? Do you know what your audience are likely to share? I recently watched a video advert that was both shareable and hilarious. A wife washed her husband’s clothes with a new fabric softener. Everywhere the husband went, people saw a teddy bear, giving him hugs and touching him. Even a traffic cop stopped him and squeezed his ears. The husband really didn’t understand what was going on and had this puzzled look on his face. The fact that this was a nicely acted-out video, all the same, made it more thrilling and shareable. Think about what sharable content you can create with your business as the center-stage character. It doesn’t matter whether you publish the content on social media, your company blog, YouTube or any other platform. It just has to be shareable!
II. Customer Referral Program
Customer referral programs aren’t exactly a new idea. They have been used dozens of times by scores of businesses. But if you do it well and make the offer interesting, you might end up attracting a lot of audience to your business. Think about a lottery. What makes a lottery such a big deal? The prize money. So you want to introduce some enticing prize money that will trigger people to action. Do your math and come up with a mouth-watering proposition that will have people emailing their friends to join in on your products.
III. Launch a Contest
Can you launch a fascinating contest in your niche or industry? Just any event that has the potential to attract media attention will do. The most creative startups know how to attract media love and attention to their business and products. They are always looking out for opportunities to do so. Hold a charity, hold a contest, or just invite people to a local event that’s likely to attract hundreds. The idea is to come up with some form of event or contest that can get some free press from either local or mainstream media. Again, squeeze your creative juices!
If used well, guerilla marketing can be a superbly powerful tool for any new business. Do some brainstorming and see what ideas you can come up with!
July 1, 2016
Today’s startup is faced with lots of challenges, from excessive competition to lack of marketing funds. The decisions that the startup founders make go a long way towards determining its success or failure. Statistics suggest that 90% of all new businesses fail. It’s important that the founders or management of a young entrepreneurship align their business with some proved success principles.
Any successful entrepreneur will tell you that resilience is one of the key qualities that guarantees the success of a new business. If the firm isn’t able to expect change and learn how to welcome it, it goes without saying that it’ll fail whenever things go south. Changing environments should be seen as new opportunities to invest in new services and products. The successful business is able to redefine, reinvent t and reposition itself based on how its environment changes. Have an open mind and think of new ways in which you can move the firm to the next level.
2) Know your Business
It’s a constantly changing and challenging business world. Many a time, organizations will lose their sense of identity, value focus and strengths. In order for an infant business to outstand bad weather, it must be aware of its purpose. It should clearly understand its core strengths and focus on improvement. All employees should be educated on the purpose and mission of the business. If you don’t know the facts, you can’t be able to tap into existing opportunities. Ask the following questions:
- What is value do you provide? Who needs who you do?
- Are you doing anything better than anyone else? What and how?
- What are your core strengths as a business? What are the main qualities that separate you from any other business? Are these things that your customers or employees could perceive as valuable?
- What are the key weaknesses of your business? Are these things that could negatively inhibit reliability, consistency, and delivery in your firm?
- What threats does your business face? Do these threats have real potential to degrade or even floor your business?
- What opportunity areas are there in your business? What sectors or areas can be improved?
3) Eliminate Obstacles
There are many obstacles that face a new business, and one of them is the lack of communication. New businesses that are able to remove the obstacle of communication will easily be able to create new opportunities. As a firm, your information sources should be your employees and your customers. You need to know what they think what they hear from others, what moves them, and what they share. Great businesses are constantly in contact with their customers. They need to get new ideas. Consider the following questions:
- How well do employees share internal information?
- What methods do you use to share critical information in a timely fashion?
- How does technology help with communication in your firm?
- How your employees are held accountable for making good decisions and sharing information?
- Do you involve your employees in the gathering of information?
- Do you regularly assess your customers to find out what they think about your business, as well as learn about their future needs?
4) Utilize Opportunities
Many startups complain that they have limited opportunities, and this success principle can be essential. Ideally, a firm that’s well versed in its strengths, weaknesses, and threats will very easily invent high-value opportunities. Brainstorming on the available opportunities and then selecting the right one to go with based on the business’s current situation is the right way to go about it.
If you’re a startup founder or management-level employee, these four principles can make a whole lot of difference!
June 5, 2015
Growing a successful business can be achieved with seven core principles, whether it is small family fun business or a Fortune 500 global company. These foundation principles stand the test of time which make them timeless. A successful business must have great leaders and great leaders often have these seven core principles that we will describe.
1) Curiosity. Strong leaders have a child-like curiosity to their life and their work. This curiosity drives these leaders to constantly look for new ways to look at problems and an insatiable knowledge to learn.
2) Try, try, and try…even if you fail keep on trying new ways to attack problems. You learn from experience so don’t be afraid to “take the shot.” Also, when you fail, and you will fail, have the courage to learn from that mistake and don’t make the same mistake twice.
3) Use you God given senses to experience life to its fullest. The smell of a crisp autumn night, the wonder you feel when you see Yellowstone for the first time, the amazing taste a glass of fresh squeezed lemonade after a long hot Summer run. When you pay attention to your senses you begin to pick up on the subtleties of life which can help you learn and grow.
4) Embrace change and the complexities of life. Change is life and life is change so embrace it.
5) Learn to use your whole brain. You are not a left or right brain thinking person, you have the ability to be a complete well rounded person who is an artist, scientist, business person, etc.
6) Mind-Body-Spirit. Keep your body well fed with wholesome foods. Get plenty of exercise and sleep and lastly have that spiritual connection.
Everything you do in life and business is somehow connected. We are all connected is some way and having that macro view of knowing that can help you reveal new ideas to grow your business.
October 6, 2014
With the increasing number of unemployed and even the underemployed people worldwide, there really comes the time wherein you will think of just starting your own business instead of taking all the stress and pressure of being employed at a company. But for those who are new to this business, they need some tips on how they can start their very own business? Of course, things will start as a small-scale business but it still needs a lot of attention and understanding especially in your part as the owner. Now it comes to these questions: Why start your own business? Will you be successful with this? What are some tips if you are planning to start your very own business?
Why start a business?
The main reason is for you to earn more. Some people have their own businesses while they are still employed. In that way, they are earning more money in making their business bigger. But for starters, it’s also a great opportunity to try out with the business of selling products and services with a small capital because eventually, when you become successful, you can do continuous upgrades to your business and maybe even have your own company!
Will a person be successful with this?
Of course, the answer depends on YOU as the owner of the business. If you work hard and put every inch of effort in what you do, guaranteed you’ll be successful and earn a lot. But if you are the lazy type of owner who does nothing but command your team do even your job, then probably end up losing your team as well as losing your business because of debts and other money loss situations. This is why here are some tips if you are planning to set up your own small-scale business and if you want to be successful in it:
o START THINGS OFF WITH WRITING A SIMPLE BUSINESS PLAN: This is more of an assumption to what will be happening to your business in the next couple of weeks or months. This includes the target sale, stocks and everything. As a small-scale business owner, you need to make your business plan as simple as possible in order or you to succeed in whatever you wrote in it and reach you target goals.
o BE DEDICATED IN THE BUSINESS YOU CHOSE: Of course, opening up a business take a lot of dedication and passion in order for it to succeed. As the owner, the inspiration of the business should start from you. If you do not love whatever you do with regards to the business, you will end up being lazy and the business will fall apart. Make sure that you love what you chose and you will stand up for it in any way you can.
o GET A VERY HARDWORKING TEAM: Who wants a team that is so lazy that you are actually doing the entire job? No one right? So as the owner of the business, you need to choose the best and the most hardworking team you can find in order for your business to work in full swing. Remember that you will be the one paying for your workers so you need to make sure that every cent you pay for them is worth it.
o HAVE YOUR CLIENTS OR CUSTOMERS READY BEFORE OPENING UP YOUR BUSINESS: Thinking of a way on how to do that? Simple. Use the power of social media and the internet. Promote your products or services earlier than your opening day so that you got these clients and customers lined up before you start off with the business. Remember that these customers will make your business successful. But you should also remember that marketing is not yet required for this stage just yet.
o SEEK FOR PROFESSIONAL HELP: Whether it has something to do with marketing or the sales, you need to ask some expert advice from the professional themselves. Ask them about everything you need before you open up your business or on how to handle the sales very well. You may even ask for some marketing strategies so that you can promote your products and services very well.
o BE PROFESSIONAL: You not just need to be professional; you need to LOOK and FEEL professional. Of course, it’s a different world compared to being employed because you are now the boss. One good way of making your business a bit corporate is by having your very own business phone, e-mail or address. You also need to talk in a more professional and corporate manner so that your clients and customers will look at you as a professional business owner. And not to mention the legal documents like business permits, tax files and many other legal files that needs to be processed before opening up your business.
o LEARN THE ART OF COMPETITION: When it comes to businesses, there is a really tight competition with regards to that. You will come across your rivals, enemies in business and even the most competitive business owners there is. You just need to be confident, stand strong and make your business stand out compared to your rival companies. Just be wise enough and use your common sense.
These are just some of the tips that you may follow if you want to start your own business. Of course, you must remember that your talents and skills in handling a business will be tested here so you better bring it your best. Make sure that your company will gain a lot of sale and clients so that you may continue the progress and development of your company as the days go by. Never be afraid to take risks because sometimes, those risks are the ones that will lead you to the path of success.