It goes without saying that there are numerous reasons why startups fail, but today we are about to look at 10 common mistakes entrepreneurs make while developing their business model explains Vito Proietti.
From running out of capital to lack of leadership – there are countless reasons for failure, but this list should give you an idea on what not to do when starting a company.
In order for a startup to have even the smallest chance of success, it has to have its business model and plan right from the beginning. So what are some things that startups tend to get wrong?
In this article, we will go over 10 simple examples of why you need to pay attention.
1. You Don’t Know Who Your Target Customer Is
You can’t build a business unless you know who your target customer is. Also, you need to be specific and not just generate a general list of demographics such as “high income earners” or “people in their 50s”. You need to be able to come up with the actual name of the person that you want to buy from you.
2. Your Product Is Not Unique and Affordable
To stand out from the crowd, your product needs to be unique and affordable. You can’t compete with huge corporations on price but if you have something special, people may pay a little bit extra for it.
3. You’re Looking for Fast Money rather Than Building a Future
Once you have a product, you need to test it out with real users, see what they think of it and whether they are willing to pay for it says Vito Proietti. Once you’ve done all this hard work, if your idea turns out to be amazing but the market is not reacting accordingly, you should consider giving up or tweaking your plan rather than throwing more money at it.
4. You Want Too Much, Too Fast
Many startups that fail are looking for fast growth to cover up other issues in their business model or plan. Nothing good comes overnight so don’t be so impatient and remember the old saying: “slow and steady wins the race”.
5. You Are Not Persistent Enough
Even if things are not going to plan, you need to make sure that you continue and don’t give up. You may be very close but it can take a long time for your startup to finally take off. Timing is everything so it’s important that you have the stamina and patience to keep going until the timing is right!
6. You Over-Promised and Under-Delivered
The most likely reason why you will fail is because you over-promised and under-delivered. People would have expected too much of you which your product was unable to fulfil, leading to complaints, refunds and bad reviews says Vito Proietti.
7. You Receive Too Much Negative Feedback That You Assume Is Personal
Don’t be so quick to blame negative feedback on personal offence. It’s possible that your product just isn’t up to scratch so listen to people’s thoughts and opinions in order to improve yourself, your startup and your product.
8. You Don’t Have a Solid Business Model and Plan In Place
If you don’t have a solid business model and plan in place, you might have the best idea in the world but unless you’re making money, no one will want it!
9. You Don’t Have the Right Skills on Your Team
You need to make sure that your startup has people with enough skills to get things done. If not, they are all just sitting around waiting for someone else to do it so don’t be afraid to hire new recruits if needs be.
10. You’ve tried To Run a Business on Passion Alone
Passion is very important but it’s not enough on its own – you need to have some sort of plan or business idea too otherwise you’ll end up with nothing but wasted time! So how can you make sure that you avoid these pitfalls and make your business a success?
It’s essential to have the right business model and plan in place before you start your startup explains Vito Proietti. If not, there are many risks of failure that are out of your control so you need to be very aware if things aren’t going well. What is your opinion on this article?