By: Mark Glucki
90% of startups fail. It’s a new world of business, and only the strongest new companies will survive. So how do you avoid startup doom?
Sometimes failure comes down to sheer bad luck or influences beyond an entrepreneur’s control, but in many cases, it can come down to the same simple mistakes that companies make time and time again.
Here are 10 common errors to avoid if you want your business to last the distance.
1. Inadequate Market Research
It doesn’t matter how remarkable you think your product is if the market doesn’t agree with you. Very few startups offer an innovation that can truly revolutionize a space, so before you spend significant money on development and marketing, be sure your market research is up to scratch. Don’t waste time and resources on a white elephant with no demand.
2. Insufficient Startup Funding
All startups need to have a realistic plan for how they’ll operate until revenue starts to flow reliably. Almost always, this means having sufficient initial funding in place to see you through the first lean months or years, whether that’s through your own investment or via a third party funding partner.
3. Unsuitable Partner Choice
As vital as funding is, it’s a mistake to go into business with a partner just because of the capital they can inject. For long-term success, you also need to have a matching vision, common aims, and complementary skill sets.
4. Poor Customer Care
If gaining and retaining customers isn’t your number one aim, your company will struggle to develop any momentum. Providing great customer care and an excellent experience is a non-negotiable requirement for success.
5. Ignoring Revenue Needs
Especially in tech sectors, it seems fashionable for startups to focus on building a product range and a user base while leaving revenue worries until later. This rarely works out well. If you don’t have a strong, actionable idea about how you’ll generate revenue as you grow, gaining more customers could actually be a fast route to failure as your costs quickly outstrip your income.
6. Poor Budget Control
Never let costs get out of control in your quest for growth. Losing sight of the importance of healthy cash flow is a big mistake — no matter how many other metrics you use to measure success. Unless you have investors with extremely deep pockets (who aren’t focused on ROI), you need to keep a steady eye on the bottom line.
7. Getting Overly Enthusiastic
Hopefully, your startup will be a rapid success, but it’s all too common for entrepreneurs to become too enthusiastic at the first signs of substantial profit. It’s important to keep a level head, press on with your strategy, and continue making sensible business decisions rather than letting that enthusiasm get the better of you.
Read More >> https://liquidcapitalcorp.com/business-growth/10-avoidable-mistakes-that-could-doom-your-startup/
