“A startup is ultimately … not just about whether an idea or a product works, it is about whether or not you can create a business around it. Whether or not the ecosystem will support it, the customers will buy it, if the channels will support it, and if the manufacturers will actually create it. And because of that, we need to be able to test all these different facets of our business model, and do so quickly.” This is by Ann Miura-Ko, co-founding partner with FLOODGATE, whom Forbes call “the most powerful woman in startups”.
It is easier to talk in theory about how to successfully launch a startup and bring technology to market than it is to execute effectively.
However, why do startups fail?
1. They charge too little the clients
Several entrepreneurs put themselves in the shoes of their customers when they think about price. Rather than doing this, they should consider the value their product offers to their clients.
2. They have No Real Sense of Planned Urgency
Persons who work with no real sense of urgency produce results that can take longer than they should practically take. If you set urgency in your work, you will stimulate your team and this will give you a lot of momentum in the first few months of a new business. Try to implant urgency in yourself and your team starting day one.
3. They Don’t Understand Cash Flow Analysis
Entrepreneurs with no formal accounting training have difficulties in understanding cash flow. If you are not able to collect payment or cash flow, even if you have all the sales in the world, you might find your company in troubles.
4. They Have No Marketing Plan
Most entrepreneurs miss developing marketing plans, which can lead their companies to fail.
5. They Are Focused on Vanity Measurements
Many entrepreneurs concentrate on vanity measurements like how much money they make, the number of times they appear in the media, or their social media following. Focusing on closing deals should be the first and the ultimate goal of any business.
6. They Don’t Focus on Culture
Entrepreneurs should build a strong company culture: Employees should feel they are valued, successful and genuinely engaged.
7. They Quit too Soon
Many successful companies went through many ups and downs before meeting success. Entrepreneurship is not easy and requires a special level of persistence.