3 Common Mistakes Startups Make and How You Can Avoid Them?
In the world of digital technology, small businesses gave plenty of opportunities to succeed. Startups in India, for example, are thriving as the record-breaking capital flow injected into the local ecosystem.
According to TechCrunch, tech startups in India managed to raise $11.3 billion in 2019 alone. Part of their success attributed to many startups’ initiatives of tackling opportunities and building solutions outside of the traditional box.
While the forecast for startups around the world looks positive, new businesses are still often prone to decline and failure. Research shows that 70% of startups fail to witness their 10th birthday.
Although this might sound alarming, your business doesn’t have to fail. The best way to navigate the challenges and come out on top is by understanding the mistakes many startups make in the first place. It will help you avoid the same fate.
Startups Fail to Raise Adequate Funds
The main culprit in most startup disasters is a lack of funds. Proper capital is vital when starting a business. It is used to launch and sustain the operation. Those who fail to raise adequate funds can face fatal problems down the line.
Although initial funding can be acquired, sometimes the challenge lies in getting repeat funding. Many companies fail to raise subsequent funds. They might underestimate how much money is needed by the business to operate correctly. The most likely scenario is that businesses tend to fold up before they get the chance to impress their investors.
To avoid this kind of dilemma, you need to find the right funding source options. It can be from venture capital, angel investors, or even crowdfunding. And perhaps, more importantly, you need to keep your investors in the loop.
Show them that their investment has put to good use by being transparent about financial matters while demonstrating measurable goals that you’ve achieved in a certain period. It will help you gain their trust – hopefully enough to get repeat funding.
Startups Ignoring Customers’ Needs
A successful business starts with a plan. This plan considers your target customers. It is not enough that you have a brilliant idea and the means to build your product offer. You must always think of your potential customers because they are the fuel that will keep your business going in the long run.
The reason why startups fail is because of the lack of knowledge and insight into what the customer wants and needs. If you position your new product offering as a potential problem-solver, then it will be easier for your target market to get attracted to your business.
If you want to avoid this problem, you need to make sure that your value proposition is unique and serves as a solution to your potential customers’ pains. Research your target market and find out what they need. Only then can you be confident of their interest and the success of your startup idea.
Startups Lagging Behind the Digital Game
The world has become digital. There’s no doubt about that. So you must solidify your online presence. From your website to your social media presence, you can leverage the power of digital connection.
For one, your audience reach can expand if you know how to navigate the ever-changing digital landscape.
A well-designed, professional-looking website is a must. This is where your audience will find information about your company and discover what you have to offer.
You should also consider implementing a good SEO strategy that can empower your visibility in search engines. The more traffic you draw to your website, the higher the chances of turning visitors into paying customers.
Investing in a solid digital marketing strategy can usher in a lot of benefits. If you’re shorthanded many Digital Marketing Agencies in India offer services in different fields, from SEO and Web Design to content marketing and social media marketing. They have the power to help improve your business and extend your staying power.
Maintaining the momentum and thriving as a startup takes a lot of hard work. It’s not something that you can accomplish overnight. But understanding the reasons why startups fail, can help you learn what not to do, saving you from making the same mistakes. Try to get help with Influencer marketing Statistics.
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