Starting a business can prove to be life-changing as well as one of the hardest things in your life. You may never know where you land up in your industry. There is a high rate of failure in startups due to many reasons but the main reasons are listed below:
1- You are still developing the wrong product.
There are many ideas flowing inside your mind. It’s your call to decide which idea has viable legs in the business world. If you are developing a product or a service which people don’t need it’s obvious that your startup will never be successful. Make something out of the box and come up with such a great business strategy that your startup raises about 1 million in it’s first year( just kidding 😛 that’s highly impossible). Talk to people, see whether your idea creates a niche in the market, do your homework and get evidence about the need of the product.
2- Your market isn’t big enough.
You might have an amazing and innovative product but it won’t make sense to implement it in a market which is not growing. For sustaining your business you need to make sure that your market is really big in size and it is growing. If you want your business to earn significant growth make sure you do your research properly before jumping in any market.
3- If you can’t adapt or pivot.
If you want to be successful it’s necessary to adapt to the circumstances and market conditions. Pivoting from your idea does not generally mean changing your core-value or idea. It simply means changing the direction of your approach to the main idea of your business. Some startups fail due to their unchangeable goals they want to achieve. Startups are meant to evolve and grow into a magnificent company, and there is nothing wrong with making tweaks and sticking to what sells.
4- Spending too much.
Your business will generally be ended if you are spending lavishly. Raising capital is a massive load and stressful for founders. Running out of cash is the least thing you would want to experience in your startup phase. Sometimes, startups control their expenses, stay lean and focus on cutting costs but as soon as they raise money everything changes. Make sure you don’t do that.
Success is something not every other person experience. So stay wise, be persistent enough and try not to make such mistakes if you ever wish your business to be successful (I know everybody wish 😉 )