7 main reasons why new businesses fail
87% of startups don't even survive the first year of existence. The main reason for this is that they make mistakes at the beginning. We introduce you 7 main reasons why your new business may fail and advise you to avoid these mistakes.
1. The business is completely copied
It is okay to spy on some business models, ideas, or any special features, especially from another market. To copy one-in-one to another company from a neighboring city will sooner or later get your business into negative statistics.
2. There is no uniqueness and difference
You are selling the same product and service as thousands of other companies. So why should people choose your company?!
3. Hype a product
It's one thing to catch new trends, analyze the market, see development prospects and develop patiently. Another thing is to buy for example spinners and expect them to be bought for years.
4. Product without demand
The creator himself is very passionate, he may simply not notice the fact that no one needs this solution or the niche is too narrow. According to Forbes, almost half of the startups are shutting down because of insufficient demand.
5. Invalid command
Behind any success and failure of any project, there are people. 23% of companies close because of problems in the team.
6. Poor marketing
Everyone bothers with the product and believes that the costs should be high and serious. It seems that a cool product will suddenly become popular and people will talk about it at every corner. In fact, you need to consider your investment in marketing immediately. They should be 1.5-3 times higher than the product itself. Real practice shows that for new products and services you need to create a market, to prove to people that they need this solution and that the solution is your brand. It's about marketing and strong marketing.
7. Ignoring customer feedback
First customers are a confirmation of your ideas and a source of valuable information. On the one hand, people can suggest what is missing, how to improve the product and service. On the other hand, feedback can be confusing and lead to failure. It is not necessary to follow the wishes of each user 100% but to collect ideas, organize them, find popular problems and difficulties is definitely necessary.