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Article Contributed by Bella Williams

Launching a high-growth business can be a rollercoaster ride. CEOs experience tremendous pressure to put up a strong face when things are falling apart. Startups can fail because of different reasons but you have to learn how to overcome these to move on and get back on your feet. Some common triggers for a startup failure have been discussed below and you need to learn how to get past these.

10 situations that can destroy your startup dream:

  1. Solo Founder: The very fact that there is only one person at the helm of affairs suggests that he was unable to convince others to get on board with him. This indirectly implies that even his friends were not convinced about this decision. It may however be true that founding the company was a great decision in hindsight and his friends may have been wrong in thinking otherwise. Even if that were the case, the CEO is at a disadvantage because handling a startup independently is a huge task. To overcome this, you need to reach out to people you can brainstorm ideas with. You need cofounders to share your views and concerns and for encouraging you when things go wrong.
  2. Copying Ideas: Most startups are founded on the basis of ideas which may have worked for some other startups. The successful ones have always been founded to find solutions to unresolved problems identified by the entrepreneurs. The best way to ensure success for your startup is to look for a solution to a problem which affects you on a personal level. For instance, Google came about since Sergey and Larry could not locate things online. So, instead of blindly copying another business and introducing minor modifications to it, you should look in other directions.
  3. Faulty Location: Another reason why startups are found to fail is because they have been set up in places where business prospects are poor. You will find startups succeeding in some regions more than in others. There may be many factors for this. It could be that the region produces more experience and technically-sound people or that people are more open to supporting new ventures. The staff that you are looking to hire is easily available there and you get supports from other ancillary industries.
  4. Limited Reach: A common reason why a startup may not be able to take off is because you are only targeting a limited audience for the fear of competition. When you decide to go for marginal projects you are taking the safer route to avoid competition. If you produce something that is really good, you are bound to have competition, and that is healthy. The tendency to move away from bigger problems is inherent; your subconscious stops you from visualizing bigger ideas. The best way to overcome this problem is to start thinking of projects without involving oneself.
  5. Stubbornness: At times, obstinacy may come in the way of a startup success. In some industries, the only way you can be successful is to stay determined and focused, notwithstanding the many challenges that come your way. This grit is fine when you are seeking solutions to a problem which is already defined. But a startup is a different ball game and you are expected to follow the trail regardless of the direction it is headed for. This means that it is naïve to stick to the original plan; the plan may be flawed and you may have to improvise as you go.
  6. Incompetent Staff: At times the programmers may be the reason for failure and your decision to quit. Many of the earlier ecommerce companies for instance had been founded by businessmen who believed startups would work by hiring programmers. However, identifying a good programmer is something that you cannot learn as an entrepreneur. This choice remains a grey area even today and you just have to rely on your gut instinct. Watch https://www.youtube.com/watch?v=KuNQgln6TL0
  7. Incorrect Platform: Selecting the wrong platform can get your business in trouble. Platform can refer to the operating system or programming languages or the framework based upon a language. In the 90s, Windows sounded the death knell for many startups with introduction of Java applets. To get the right platform, you need to consult quality programmers.
  8. Slow Launch: Startups often fail because their launch is unreasonably delayed. At times, the software is almost complete but the launch does not happen. It is important to push for this because the truth is, nothing finishes till the time is gets released. Unless you bounce the idea off customers, you cannot completely understand it. When you delay this, you fail to gauge the problems; you are afraid of user reactions. In an attempt to become perfect, you end up working on multiple things and delaying them all.
  9. Fewer Funds: Startups will not work if there is too less money for takeoff. Almost all startups are not profitable right from the start but they should have some money left to sustain them before they actually shut down. You must take enough funds from your investors to be able to proceed to the next step. On the other hand, when you use up too much money, your fund channels will soon dry up.
  10. Sacrificing User Needs: Very few startups can actually offer something that the user needs. It is easier to focus on making more profits. So, you should ideally keep the business models for later. You need to put user needs first and then think about how to generate revenue from it.

Author Bio:

As an academic researcher & private tutor, Bella Williams guides the new age professionals and students with their career. A graduate from Monash University, Bella organizes free coaching workshops and promotes free sharing of knowledge. She is also on LinkedIn.


 
 
 

 
 

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