Who hasn’t dreamt of having a grand home, luxurious car, and an uber-cool life like an entrepreneur? Well, each of us has this in our bucket list no matter at what position? To be honest, I tried running a start-up too. I was flabbergasted the way the things turned out and the efforts it needed. Let me make an honest confession. I was allured with the glitz and glam that the young entrepreneurs get. I knew it needed effort but it takes more than mere efforts. It needs a part of your life. And here I failed. Although I was prepared to nail it, I wasn’t prepared for the consequences. I failed miserably at it.
It’s not to state that we figured we could be everything to everybody. It’s more that we didn’t have a particular vision, a north star, that kept our association moving in lockstep. We were a piece excessively reckless in the associations we fashioned, occasions we facilitated. The press that we drove across various sorts of news sources (tech versus the way of life versus wellbeing and health) didn’t adhere to an unmistakable, reliable message. Our purchasing model (customized memberships) wasn’t absolutely good with our shoppers’ purchasing propensities. What’s more, we attempted to make up for the entirety of this by emptying cash into paid advertising channels. I frequently wonder if things would have gone diversely had we completely dedicated to only one of those dreams, every one of which has a genuine upside. In any case, we didn’t — rather, we put every one of the dreams into a mixture and believed that what came out would be a victor. We recruited a top-level office to assist us with building up our image voice and tasteful, and each of the three of us went to the technique meetings. Truth be told, each of the three of us settled on most choices together in the good ‘old days.
Why do new Start-ups come up short?
I’ve realized there is infrequently one explanation behind a solitary startup’s disappointment. I did almost everything that needed to be done, but surely there are a few things that come surprisingly and it is your decision in these moments that decide your success. Here I share why my start-up failed, if you too are doing the same mistake it is not too late.
13 Reasons Why My Startup Failed and How You Can Avoid Repeating My Mistakes
A start-up fails due to various reasons, and I definitely can’t list it all here. But surely to make sure the future entrepreneurs do not see a downfall, I have curated a list here that would help them keep pace with their dream project.
1. Not Being Ready to Back
We all make wrong decisions. Some wrong hirings, wrong investment, or just a wrong idea. Not pivoting them is the major reason why your startup may crash. Carrying on working with something where you know you are wrong, you lose interest. The most important thing is, have the courage to accept you have failed, announce it, and deal with it. If one idea fails, there would be another one where you can invest. Don’t stop putting efforts just know if you fail a thousand times, try thousand and one times.
2. Burnout Yourself to Extreme Levels
Don’t. Never ever do this. Take proper rest. It becomes really difficult for new entrepreneurs to maintain a work-life balance. This leads to burnout. I had put in all the efforts, pushed myself beyond my limits, and struggled a lot to survive the market risks. In the whole process, I forgot to take care of myself. Gradually my health started deteriorating, and the aftereffects were real trouble. Due to burnout, I could not give appropriate time to the start-up and it started facing some issues.
3. Lacked Networking Skills
It is important that you use all your connections to market your new venture. Yes, there could be a few people you may think won’t make a difference but who knows they can. Also, stay in touch with your investors. Healthy relationships with those who are trusting you with their money, add to the goodwill. Keep your investors involved with some of the decisions related to the business. It makes them feel important. If you need help, ask them. The insecurities are going to bring down your business surely. Hesitation isn’t taking you anywhere, just be a little vocal about your needs, market yourself well, and see how much they can help.
4. Miss the Geographical Expansion
This may not sound like a big mistake, but it is. There are a lot of points that are to be taken care of when you decide to expand your business. You need to make sure there are a few things that can never take a backseat and this is one of them. Make sure you are engaged with your clients and team. The geographical location additionally assumed a job in disappointment for remote groups. The key being that if your group is working remotely, ensure you find powerful specialized strategies, in any case, the absence of cooperation and arranging could prompt disappointment.
Although you are working with a remote team, it is important to take care of the locals and the location of the target audience.
5. Disharmony in the Team
A major issue. Surely, if there are any conflicts in the team, the start-up is going to crash. It is better if there are any issues regarding the opinions, they are sorted then and there. Conflicts may take an ugly picture gradually with a team of few shattering down. There could be a probability that you have some thought differences with the investor and they want to withdraw their investment. With such issues, it becomes really difficult to survive the market.
The team that can’t stand together in tough times isn’t going anywhere. It is important that you connect with your team in the right manner to keep an eye on everything and ensure transparency.
6. Ignore the Bad Reviews
It is important that no matter what none of your customers goes unheard. They are the real teachers. With a small team, I understand it is difficult for you to manage criticism, but customers are the key. Take care of all the bad reviews and make sure they are well taken care of. Work on the negatives and stay inspired to move ahead. Ignoring bad reviews is one mistake that many startups make. Each criticism is a way to improve. So, just have some interesting schemes ready to deal with work.
7. Wrong Marketing Strategies
Using the wrong marketing strategy is going to incur an only loss. You need to be very sure how things work and what you want to attain. Also, make sure the target audience is always the center of attention. If you are not sure how to take your product to the audience, and how to pursue them to buy your product, then surely you have walked the wrong path. Your start-up would surely crash if you cannot take care of one simple formula: “Being at the Right Place at the Right Time.”
8. Product Without a Business Model
You have a product idea that would definitely earn you great profits. But believe me, if you don’t have a business model to sell your product you are already a loss. Most entrepreneurs who have hit the market with some great products concur that a plan of action is significant – remaining married to a solitary channel or neglecting to discover approaches to bring in cash at scale left financial specialists reluctant and originators unfit to exploit any footing picked up.
9. Lose Focus Lose Game
Surely you are focused on various aspects and if you have a job then on that too. This is tricky. Because when you work in a start-up you need to take charge of various departments and responsibilities. Everything I repeat everything can take a backseat until you have a complete focus on your product and your business plan. Taking other options or looking for various things at once is simply going to burden you with loads of workload and stress.
Shake it off, focus on one aspect at a time.
10. Choosing the Wrong Pivot
Yes in the first point I did ask you to back a wrong decision, but it is only if the damage is little and you have some chance of getting things done in a better way. If you are sure you did a blunder, admit it, leave it aside and continue further. Easy? It isn’t. It is difficult for you to realize if things are going to be in place or not. You are never sure which is a blunder and which isn’t.
You need to be very calculative and calm when you decide to back your flaws.
11. Lack of Passion
One thing that is going to be troublesome for you and your start-up is a lack of passion. Well, I personally believe 99.99% of entrepreneurs take up a venture only if they are interested in it. Many start losing interest gradually due to loads of responsibilities, mismanagement, team conflicts, confusion, issues with investors, etc. Never let anything influence your love for the work that you have started.
This is one love that would hurt you a lot only to ensure you rise up like a winner. So, don’t let the passion for your product die.
12. Legal Issues
Yes, we did face some legal issues. We checked legal things and thought things were fine. But as we moved further there were a few loopholes. I am sure you have done your homework well, but still, reach out to someone who knows it all and then revise your papers. Take it seriously, this advice comes from someone who has suffered the pain of legal chaos.
13. Product Could Not Keep Pace with Customers
In case you bring your item too soon, clients may discount it as not sufficient, and getting them back might be troublesome if their initial introduction of you is negative. Furthermore, on the off chance that you discharge your item past the point of no return, you may have botched your window of chance in the market.
New companies bomb when they are not taking care of a market issue. We were not taking care of a huge enough issue that we could generally present with a versatile arrangement. We had extraordinary innovation, incredible information on shopping conduct, incredible notoriety as a pioneer, extraordinary mastery, extraordinary counsels, and so forth, yet what we didn’t have was innovation or a plan of action that unraveled a torment point in an adaptable manner.
These were a few points that would surely prove to be the ache-points of your start-up. If you can deal with these passionately and heroically then you have almost won the battle. Don’t lose motivation. It is going to be a tough time where the world around would judge you, talk ill about you, and even discourage you. There could be chances that you would feel like not pursuing it anymore, don’t let these feelings dominate. Stay positive, take some time to learn more, understand better, and don’t let the negative feelings take you away from your dreams.
Winding Up the Story
Well, these were a few reasons why my start-up failed miserably. Sometimes it becomes difficult to realize what to do and what not to. I still wonder what if I could have sustained it a little more, but then we know things happen for something better. I have seen a lot of entrepreneurs do the same mistake as I did, they quit. I did it for better opportunities, but once I think I am prepared I’ll start again.
And this time I would start only for a better result and stronger will to win. Learning from the past and implementing it for a future is the only way to gain better knowledge and better life. A lot of successful people, actually all of them have done that.
I hope the writeup made some sense to you and before you start moving passionately towards your dream, you know the pitfalls and the right direction.
All the best for your future endeavors!!!