Statistics show that around 90% of all startups fail, but what we can’t understand from this fact is why it happens so often? Another thing we can’t learn from such cold statistics, but experience has proven it time and time again, is that many startups fail even before they start working.
This, however, doesn’t mean that people should be put off and give up on the idea before they have even registered their company. On the contrary, this should send a message to all those interested that they need to stay focused, work hard and be realistic about their expectations. So, what are the characteristics of those startups that have made it?
Right product or service
Your offer may be of excellent quality, but if people don’t need it, you won’t be able to survive as an entrepreneur. As a matter of fact, most owners of failed startups list “lack of market need for their product” as the main reason for their failure.
This means that you have to be spot on when it comes to what you’re going to offer. It as to be unique and different, in a good way, from what your competitors are offering. In order to be sure there’s demand for your product or service, it is necessary to conduct market research, so that you don’t rely simply on your gut feeling.
Being involved in everything
A startup doesn’t really allow roles to be very clearly divided, since things tend to be pretty organic and responsibilities often overlap. That’s why all entrepreneurs need to pay attention to absolutely everything that’s going on. They don’t have the luxury to ignore anything, believing that someone else will take care of it.
This, of course, doesn’t mean that each task is equally urgent and important, which is why you need to be able to prioritize well. If you allow various less significant tasks to distract you from what’s really important, you won’t be able to focus on the things that really matter to your business.
Ready for fast growth
Depending on the line of business you’re in, you might face a rapid growth, which you have to respond to appropriately. Contrary to popular belief, fast growth is sustainable. It is also exactly what entrepreneurs and investors dream about and a sign that you’ve made it.
Startups should be looking at a double-digit growth rate after several months of operation. Otherwise, they’ll never be able to grow enough to reach the point when they can be considered a well-established business. Finally, startups sometimes run out of financial resources exactly because they haven’t grown fast enough. So, those companies that have made it wanted and achieved a fast growth in the early phase.
A capable team
Since there are different types of problems startups are facing, it’s always a good idea to have a versatile team of people to respond to all challenges, from the owner to a professional virtual receptionist. The versatility we’re talking about here refers more to a mindset, rather than a skillset.
Teams have to be ready to adjust their plans, change products, take new approaches or even start all over again. A good team can take a blow and recover and, most importantly, learn from their mistakes.
Successful startups use aggressive and appropriate marketing methods to attract attention and inform people about the offer. In order to have an efficient campaign, you need to exactly who you are going to target and how you’re going to do that. That means you should be aware of the demographics, age and gender of your target groups and their shopping habits.
Using social media has become a must and all successful startups have exploited them quite extensively and efficiently. Those who have failed to embrace this and many other modern trends simply missed out on an opportunity to capitalize on some very efficient channels through which many new customers can be attracted.
If you want your startup to be among the 10% that make it, you should most definitely pay attention to these and many other things. Remember that most business endeavors fail because they either offer something not many people need or because they don’t bring any added value to their offer. Both of these issues stem from the period before the company is registered, which means you need to do your homework and research the market.
Needless to say, you need a lot of courage and flexibility to adapt your plans, but if you play your cards right, you’ll be rewarded with an amazing experience of witnessing your startup grow and a financial compensation for all your effort and troubles.
Guest Author is Alex Williams is a journalism graduate, and a rookie blogger trying to find my luck. Blogs are the perfect opportunity for presenting yourself to wider audience, getting the chance to showcase my expertise and receiving recognition. I am a regular contributor at Bizzmark Blog