Most people think that their idea is the next big thing mankind has been waiting for. Anything less than this thought would also be unhealthy for the implementation of their plan. But in reality, 90% of all startups fail.
Most ideas fail because of things that could have been prevented. If you want to build a successful startup you should look into avoiding the following mistakes.
1. No market demand for the product
Many startups are so convinced by their idea that they assume the market has been waiting for them and that financial success will follow. But sometimes, the market is already so saturated that there is hardly any demand for innovations, and their product can quickly end up being rejected by audiences.
2. Too little focus on customers
All startups should have the goal of providing a solution for other people’s problems. But many of them fail because they think they have a brilliant idea and assume that customers will buy their product all by themselves. They subsequently concentrate too hard on building their startup. But early feedback from potential customers is extremely important to adapt your idea and make it even better. Companies should not be afraid of negative feedback since failure also contributes to the achievement of goals.
3. Insufficient financial resources
Lack of capital is another common reason for the failure of startups, especially in the growth phase when follow-up financing is often lacking. A study by CB Insight puts the number of startups that fail due to lack of capital at around one third.
4. Being a One-Person Team
Many people make the mistake of wanting to build up as much as possible with as few staff as possible. But spending as little money as possible will fix itself if you have good people to back you up. You shouldn’t forget that it is not individuals who build large companies, but teams that do.
5. Strong competitors
As your startup becomes more successful, you also start attracting the attention of larger companies. If your idea is easy to imitate, they will have no problems to overtake you thanks to their powerful financial resources. Once they have analyzed the weaknesses, they have better opportunities to develop solutions and thus force you out of the market.
All in all, there are as many ways to do it wrong as there are ways to do it right. It is clear that startups have to prove enormous staying power, but they must never lose sight of their focus. And that’s the only way to build your own startup business.