It’s easy to talk about problems, but it’s pretty hard to avoid them. Here we’ve got the five biggest reasons for startups’ epic failures. Remember them, and never forget them whenever it comes to creating a business plan for your business.
- No market need (42%). Study the market so that you don’t find that your business is unnecessary after you have put all your money into it.
- Lack of cash (29%). This one’s pretty clear. No money = no honey. Find the proper financial support before diving straight into the market whirlpool.
- Bad timing (23%). Proper time management skills are a must for any kind of success. Scale them up before launching a startup, and you’ll eliminate the chance of failure by 23%.
- High competition (19%). Find your company’s competitive advantages that will make you outperform your competitors. This one is really important for new businesses because they don’t have consumer trust or a strong reputation yet. Imagine you are a customer. What features should your company possess to make you choose it?
- Pricing (18%). This one is about the prices you set for your services. Don’t overprice your product at the initial stage (who would ever buy something expensive from a no-name company?), but don’t underprice it either. Find the balance. Do some market research, and figure the average price in your niche.
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