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Causes of Failed Startup Businesses

By pauline Sep 10, 2022

Startup Businesses in Entrepreneurs already know, that a business usually tends to fail at the beginning of their year. However, letting it fail is something you don’t want. Including in the startup business that has recently fallen. That is, starting a business is not an easy matter if you want to develop your startup business because at the time of developing the business.

Launching Michael Waterbury from Entrepreneur, what is needed is not only hard work but you also need the right strategy for you to run in order to develop your startup business effectively and efficiently.

Startup Businesses You hired the wrong person

Big companies often hire bad employees. But they are large enough to absorb a number of inadequacies without affecting the stability of the business, especially if their business processes are good. Of course, the smaller your business, the more painful it will be when you hire the wrong people.

Continuing to keep employees who let you down at the start of your startup is wrong. You can contract several teams to help with your needs for a certain period of time such as accounting, marketing, HR, and even sales. Be wary of “friends and family” who offer service and assistance.

They may mean well, but having a professional relationship through paid resources for their talent and accountability will certainly make the difference between successful project completion and meeting deadlines.

Startup Businesses You don’t have time to sell

Often, entrepreneurs have vision, insight, strategy, and even the ability to manage a team. In fact, you can find a great product or solution. But, unfortunately entrepreneurs often fail because founders don’t realize quickly enough that they don’t have the time, skills, or network to sell effectively. They need a real salesperson to start earning. Sales are a powerful resource to have on your team, as they are easily quantifiable and have a measurable Return on Investment (ROI). When recruiting salespeople, consider their past numbers carefully. Hire an individual with a strong network in your industry and encourage them to make a sale.

You spend too much time raising funds

If we look at the information in the business newspapers about the extraordinary increase in capital, where some startups can raise US $ 30 million or some others managed to raise US $ 50 million.

Make sure it doesn’t affect you. This is because many founders spend half or more of their time raising money. When they are in the midst of a lot of money, on the other hand they lose their footing on the problems their company has to solve. Seeking millions of venture capital makes a lot of sense for some companies.

But before you go down that road, ask if your company can basically function without you. If you can’t, it’s better to use the bootstrap method and look for alternative funding that grows organically to keep the start-up from slipping. Be sure to ask: How can these investors drive your vision and growth, apart from a capital injection? Do they share a common mission, is there a team of experts to help provide strategic guidance, a network of people in your industry who have proven successful and have additional relationships or resources, such as financial and marketing support?

By pauline

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