Startups have become a trend these days, with so many budding entrepreneurs around the world taking stride in entrepreneurship, running their businesses with a hope to establish them successfully. But running a startup is not everybody’s cup of tea. In fact if we go with the facts more than 90 percent of the startups fail at the very start and only a few are the ones that get converted into a full-fledged revenue generating business. Sometimes individuals running startups do not even realize what went wrong and what the reasons for their failure were. For generating revenues your startup has to be well established and free of financial burden having recovered the breakeven cost involved in setting up the business. Not just this would ensure that the revenue is generated but also how well thought and sustainable your entire business model is what that makes your startup a sustainable revenue generating business. Here are some of the common mistakes that startups make due to which a lot of people have wasted their time, money and resources and which would also make you aware before starting your own one.
- The problem may be there in the basic idea of the startup. A good idea is the one that solves a general public issue and brings in product or services that are needed by the public to solve that problem. If your idea itself is not catering to the target market needs and you are still being confident about it just because it’s good for you then it would not make a profitable venture for you.
- Another reason could be the financial crunch that one may face in the early stage of a startup. Losing out on money too early and fast could be a reason for your startup to fail and not make revenues. Instead it would cost you even more leaving you indebted at the end. You need to have sufficient funding and backup plan to cope up with such situations.
- Startups can also fail if the allocation of money and resources is not well thought and is done poorly. This will affect your startup adversely as you will not be able to know the exact reasons and underlying faults and would not be able to gauge the risks involved with the steps that you take to extend your business. Proper management of funds and resources is very important to help flourish your business idea.
- Not following a customer feedback oriented approach could be a major reason for your startup not making money for you. Having a deep understanding of customer needs , their choices and consumption pattern and responding to customer’s feedback to ensure most effective delivery of product and services is what, that is going to help to establish yourself in the market and make profit in the future. Ignoring this fact could be disastrous for any startup.