Why did your business fail? Top 10 reasons for startup failure, avoid these and get closer to success
On the road of starting a business, happiness and risk often coexist. Happiness is that your efforts are rewarded; risk is that there will always be some problems on the road of starting a business, which will cause your business to fail. So, why did startups fail? Here are ten of the most common reasons for failure! If you are starting a business or want to start a business, avoid it as soon as possible to help maximize your chances of success.
- Not enough money
Although we say that you can start a business without capital, cruelly speaking, these two requirements are too high for the entrepreneur's own quality. No one in ten entrepreneurs can start a business from scratch without capital. For most entrepreneurs, the capital is still enough, at least this capital should be able to guarantee the normal operation for a year. If there is a problem, they will not be caught off guard by the lack of money.
Second, the wrong market positioning
Every entrepreneur wants to do what they think is a good project, but this good sense of self does not necessarily match the market. If you only look at the project and ignore the preliminary research and accurate positioning of the market, then once you start a business, there will be various conflicts between the project and the market, or even failure in the middle.
- Not making good use of human connections
China is a human society, and the importance of human connections is well known. Chinese-style entrepreneurship is something that requires entrepreneurs to make full use of their connections. Entrepreneurs need to put their heads down and make good use of any connections at their disposal. If they fail to do this, entrepreneurship is prone to big weaknesses.
Why did your business fail? Top 10 reasons for startup failure, avoid these and get closer to success
- Lack of permanent passion
For entrepreneurs, passion is an essential spiritual force in pursuit of success. However, entrepreneurs can't just have short-term passions. No matter what industry you choose and what you do, you should find a way to keep your passion alive. As Jack Ma said: "Short-term passion is worthless, only lasting passion is valuable, and passion cannot be hurt."
Five, the marketing strategy is too virtual
For most entrepreneurs, they usually focus on the product. They think that if the product is good, other problems can be solved easily. Therefore, they ignore marketing strategies, or think too much about marketing. There is no set marketing strategy that can be clearly implemented and effective.
Six, can not achieve timely loss and stop
When the current investment cannot be recovered, all you need to do is to stop the loss in time, instead of being trapped by sunk costs. At any time, entrepreneurs should have enough courage and courage to respond to various changes in order to brake in time, rather than running all the time.
- The business is not focused enough
If you want to grab everything, it's often impossible to grab everything. If you focus on a wide variety of businesses, it's hard to do each one well. Therefore, entrepreneurs must focus on their own business, and don't think that they can do a little bit in any industry, and the gains outweigh the losses in the end.
Why did your business fail? Top 10 reasons for startup failure, avoid these and get closer to success
- Fear of making mistakes in decision-making
Entrepreneurship is about risk. No matter how you decide, you can make mistakes. However, you shouldn't stop for fear of making a mistake. What entrepreneurs should do is to improve their decision-making ability as much as possible, reduce the risk of the project and the probability of making mistakes, and summarize the reasons from this, so as to avoid encountering similar problems in the future.
- No Mentors and Advisors
Entrepreneurs should not work alone, nor should they only be closely connected to their own teams. They should also actively go out and find mentors who can guide them and appropriately invite some advisors into the future. Don't underestimate advisors and mentoring. They don't have to be experts in entrepreneurship, but they must be able to provide guidance on the business, management, or marketing aspects you're helping.
- No profit model
One of the most important issues in entrepreneurship is the profit model. No matter how big your pattern and feelings are, no matter how good your entrepreneurial ideals are, the first problem to be solved is to make money. Therefore, entrepreneurship must have a profit model. Entrepreneurship without a profit model is basically nonsense.
The above ten points are the most common problems for entrepreneurs on the way to start a business. I hope these entrepreneurial thoughts can help you who are starting a business.