To find first customers is always a matter of battle for any business. Before taking a plunge into your own startup, learn from other entrepreneurs who made mistakes and have faced a hell lot of challenges. This groundwork will surely help you to build an insight that can lead you to success.
POOR SYNC UP BETWEEN IDEA AND MARKET NEED– Sometimes the market is not demanding what you are thinking to cater. When conducted a survey by entrepreneur.com, 20% said their startup failed most likely because of the mis-fit of product in market. Another thing they miss is being reserved with their thoughts and not talking to enough prospects before plunging in. Also, the haywire approach of not understanding the target market result and diverting to multiple ideas followed with the main idea. The matter of fact is consumers are extremely resistant to change and less preference for trying a new product. Founders tend to believe their product is great since they’re always the first to try new products themselves.
But mainstream consumers might not always understand why or how to use the new products. In this instance, startup entrepreneurs might think the market should change to fit their vision, but this thinking ignores the market realities.
CASH CRUNCH– According to 13% of the surveyed startup founders at entrepreneurs.com, to face a cash crunch, leaves no scope to cope up. Many startup fail, because they just run out of cash. Therefore, while creating business model, taking care of cash flow is equally important. Inspite of enough cash you have as a backup, without revenue generation model sooner or later it would run dry. Also, without measuring the money spends and gains, if you keep on investing on unnecessary features or marketing budget have also led many startups to run out of cash.
FASCINATE WITH MARKET COMPETITION– Most of the companies get confused with the emerging ideas in the market. And then try to gather idea, merge with their idea and result into some disaster. Generally, startups are mistaken with a conception that they have only great idea and launch without proper competitor research. 19% of startup failed due to this according to fastcompany.com ignoring the market competition. Ask yourself what you’re doing that no one else is doing.
So, does it mean the reasons for success is to be concluded as the opposite of those for failure? Let’s have a close look to best-known and most successful startups—Uber and Airbnb things we need to learn before launching a startup.
POTENTIALITY OF THOUGHT BEHIND ANY STARTUP– Many entrepreneurs believe that Idea is key for any startups to succeed, though it is not the same in all cases. Especially if we take examples of Google, YouTube, Facebook – they were not the fresh ideas, yet they achieved great success. What was different about them? They made their product strong compared to what all existed. Fresh ideas like Uber and Airbnb have also made a mark with their startup success. Initially, investors felt that their ideas are not feasible but still it strikes the market with a bang.
ACCURATE BUSINESS MODEL– A startup should plan its business model which have a sure-shot money-making strategy, to attract investors. A model that can generate customer revenue and is seemingly insignificant. Many startups are not able to see the light of success even after putting everything in place is just because of lack in business model. Financial gain is the most important factor which cannot be neglected. So, having a business plan will save you from any kind of unforeseen bankruptcy.
LAUNCH AT RIGHT TIME– If you launch a search engine like Google tomorrow, then it will be sure flop. As the times have gone when people were fascinated about search engines. Timing is very important. Thing which makes the life easy can create a greater viral effect. For example, earlier in 1990’s to stream a video was a great challenge as various kinds of plugins were required for smooth streaming. Just during that time Adobe flash and YouTube came to make the streaming easy.
Are you planning for a startup? Have an idea that can make your dream come true. Get a free consultation from Gateway team who helped 50+ startups to shape their success curve within a couple of months of their foundation. Right from concept development to resource management you can completely rely on us. Our team will be with you at every step to analyses your decision and show you the path to success.
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