A business idea can strike you anywhere, while doing your job, eating out at a restaurant or even sitting idly at home watching television. Somewhere between thinking of that unique idea to actually starting that business, there is a process that determines if the startup company is a success or failure. Often, entrepreneurs get so excited about the idea, they lose objectivity of the project. Hence, it is important to analyze the reasons for failure of such startups and work through them.
Reasons for failure
A company can fail for a number of reasons, ranging from money issues to lack of market research and poor marketing. Companies fail to follow a Systematic Support for Startup Ideas which can result in a crash and burn of the project.
- Run out of money: Money is present in finite amount and needs to be allocated sensibly. How to spend the money wisely and on what product or marketing strategy is a frequent conundrum for many startups which they are not able to crack.
- Poor marketing: It is important to know all the basics of the product and the target audience. For an initial period of time, the company would grow effortlessly. But it is the marketing, which helps the company in promoting their product and reach a wider audience. The inability to market the product has affected nearly 14% of the startups.
- Wrong team: Any startup company’s critical need is people with different skill set. Many failures of startups are attributed to the lack of additional co-founders who would have handled some other aspect of the company, resulting in less pressure on the person who handle them alone.
Starting a company is not an easy job. Not only it requires money, marketing strategy and time, it also requires perseverance and patience to manage it. If you have an idea or already have started a company but have no idea how to manage it, don’t let lack of this skill hinder you. There are many companies who provide Support to Non-Performing Industries and help them excel in their field.