Most startups collapse after few months of operation despite having very great ideas that can transform the world. It’s indeed a heartbreaking moment to see your first business venture going down and you have devoted all your resources in the hope of growing it into a big empire.
The main reason that contributes to startups failure is the lack of exposure or experience in running business. When new entrepreneurs start trading, there are a lot of mistakes that they end up committing which in turn cause a great downfall to their business ventures.
Prior preparation and adequate research in your preferred business niche can save you a great deal when it comes to making a perfect startup pitch. This article gives an illustration of the most common mistakes that kill startups that every green entrepreneur should know.
1. Being too Much Profit Oriented
Not every startup will guarantee profit in the short term. It is, therefore, advisable that every entrepreneur should focus more on setting the structures right and make clear guidelines on how to achieve the strategies set.
When you set all the business basics right, you are assured of smooth business management because every department or product line infrastructure is clearly stipulated.
When all the set strategies are implemented right, the business becomes easy to run since there is a clearly set goal that you will be working to achieve.
When you work to achieve results, the profit aspect of the business will finally be realized and the startup will have already established grounds.
2. Poor Strategy Implementation
An ideal startup venture is built on a planned clear business strategy. All the startup entrepreneurs are so passionate to work on their strategies when pitching their business ideas but most of them fail to remain consistent when they are faced with challenges.
There are few hitches that every startup experience depending on the type of the business. However, the majority of the startups do not have the capacity or courage to withstand such challenges and they often end up changing their business strategy.
Frequent changes of business strategies have adverse effects on startups since the overall business objective is never achieved.
Therefore, it is highly advisable that every newbie entrepreneur should conduct prior market research to identify the possible challenges that are likely to affect the startup and then prepare accordingly.
Give the already set strategy sometime and when you put all your effort into it, you may find it working successfully in the near future. Thus, avoid changing the goal post.
3. Failure to Engage Professionals
Many startups entrepreneurs venture into business without solid information in relation to the business that they want to run.
When you get advice from individuals from all walks of life (your family members or friends), you will end up having too many opinions that are not substantial.
Therefore, it is highly advisable to engage a profession who has a lot of experience in the business niche that you are targeting to venture.
Experts will help you prepare adequately and you will have prior knowledge of challenges to expect and appropriate methods that you can employ when faced with such challenges.
4. Lack of a Feasible Business Idea
Many entrepreneurs often fail to establish a clear reason why they want to venture into business. Some are attracted by illusions of making profits without really understanding the underlying factors that determine business success or failure.
Which gap are you filling in the market? Are your product/services in high demand? Where are you going to locate your business or does your business ideas have growth potential?
Such questions can serve as a guide that can help any startup to validate their business ideas and determine whether they are viable or not.
Conducting market survey prior to starting a business is advisable as it will enlighten you with first-hand information that will help you understand whether your product or services will perform well.
5. Insufficient Startup and Emergency Funds
Lack of adequate capital to start a business can cause your startup to stagnate and finally collapse. Adequate capital plays a major role in making a successful pitch.
As we all know, most entrepreneurs start their businesses with capital from personal savings and borrowings from friends and family and in most cases the capital raised becomes insufficient.
It is advisable that you prepare adequately and have the right capital amount that will ensure all procedures and basic materials are made available so that the business can run efficiently.
You can consider seeking startup loans from reliable providers but you should use the money borrowed wisely and repay the loan as soon as possible to avoid falling into huge debts in future.