Reasons for start-up failures and ways to overcome these failures-

Introduction-

Most of the time, initially start-ups take good pick up but over a short period of time maybe 6 months to 1 year they slow down, this means that only having a strong idea to do business is not sufficient or, for the success of the start-up. Success mostly depends on the survival of your idea in the market and the efforts taken for it, sufficient marketing of the idea and promotional tasks, advertisements, etc are required to be monitored very closely at the initial phase

Here are some reasons which slow down the idea execution during the initial period.

1. Adding too many features at the initial launch

Very less start-up holders add the philosophy of “need-based products or services” instead of adding too many features to the product or service. Adding many more features will take excess time to catch the minds of the customers and the product rolling in the market will give money after a long period of time.

Instead of this, we can keep our idea which will fulfill the market needs and address the instant problems. Once this is delivered in the market and accepted by the customers, we can evolve the product over a period of time as per the customer’s suggestion and feedback, etc. A simple example of this strategy is an old and new version of Instagram, they kept it very simple at the start so that users can edit photos and upload them at the same time and it gets saved in the gallery. which saves time for the customer to edit the photos with the different apps and again upload them on Instagram, however over a period of time they have added many features to it. 

2. Ignoring the Idea of Existence 

Your start-up or new venture gets slowed down if you failed to spend sufficient time collecting data about the existence of the idea in the market. In short, you need to find out if someone is working on the same idea and then what are the similarities and your USP to catch the customers.

This must be studied before the product is launched in the market, otherwise, you may lose space in the market by the rule of the first impression is the last impression. No one should point your product as copied from someone else this may loss the brand image in the market, in other cases, if the product is the same then you should market and promote the USP of your product or services. 

We may exclude the products and services like mass production and huge consumption products such Agarbatti, Kampoor, etc which are produced with not much creativity and innovation and has a base of high consumption and very fewer prices maybe some coins only.

3. Ignoring bits of advice from the Mentor –

Generally, any start-up owner doesn’t take mentors as of much value, but mentors play a vital role in the successful journey of your start-up and business formation and venture formation. Start-up owners may be due to ego problems, throw out criticism and feedback given by the mentors, maybe you don’t feel it much helpful, in real terms it will damage more to neglect such pieces of advice.

To make your start-up more exclusive and special such suggestions and guidance from the mentors are required at the prime level. You should be open-minded to accept the criticism and feedback received from the most experienced entrepreneurs, mentors, etc.

However, you should also keep an analytical mind about which suggestions are most useful and which are a little less useful for your case. this will make your product much stronger before entering to market.

4. Inner Negativity –

When you start working on any project or idea, you may face too many “NO”, from society, family, and friends. The only approach that works in all such cases is the commitment to the project, execution of the idea, ways of doing it, and aspects of success.

5. Taking inappropriate team members. 

In absence of proper and like-minded team members, there are chances of the start-up may slow down after a certain interval of time. The other thing is each and every team member should know the common goal and target of his/ her start-up or company otherwise the start-up may go directionless.

In such cases, if the team members are like-minded and have different competencies for their start-up e.g., someone who is an expert in finance, sales or design, etc, overall, they will put views and thoughts which give good strength to the start-up.

6. Ignoring marketing and promotional strategies

Everything is excellent like the idea, concept, rollover plan, etc but if it’s not advertised and promoted in the market, everything is a waste. Today people are not taking information from wall pastings, or hand flyers, but they prefer social media and other social connectivity.

You should project your products and ideas in front of customers using such powerful tools.

7. Targeting the Huge Audience at initial

In the initial stages you should identify your target audience this will help you to move the product properly in the market. In short, start targeting the local audience first and the customers who need your product and services instead of going too far. We should also keep in mind that we should solve the proper problem of society or fulfilled the need. You can make the rollover plan of targeting the audience in the first phase, second phase, and so on, this will give more clarity. At initial, reaching too many customer segments is always risky.

In summary, I can mark that, we should always keep yourselves updated and keep in mind that change is required at proper times customers are king, we should keep the habit of knowing their needs.

 

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