It is a good decision that you made up your mind to proceed and become
financially independent. This feels quite good and you are raring with
confidence to fulfill your dreams and ambitions. But, did you know that a very
high percentage of startups fail and the reasons are quite simple and
rectifiable. Let us look at the top seven reasons for startup failures.
Niche: A very important factor when deciding on which niche to work in.
Finding a niche that you are interested in as well as big enough to keep your
interest for some time to come is a highly important factor. If the niche is too
small, your growth could be constricted and ultimately give rise to boredom and
Knowledge: Make sure that you have enough knowledge about the niche and
the market statistics and trends in addition to any technical knowledge that may
Capital: Many startups lack proper capitalization and this is not a good
sign for a startup. Make sure that you have at least three month working capital
in addition to monies required to start the business.
Marketing: In addition to technical knowhow, you would need a fair bit of
marketing knowledge to make sure your products or services sell.
Pricing: As a startup, pricing of your products and services is very
important and keeping them at the lower end of the market initially could help
you pick up sales. Have a long term pricing strategy to plan your business
Motivation: Running a business requires a lot of patience, perseverance
and motivation for long periods of time. Are you self motivated to keep things
going when the going gets tough?
Branding: Branding your business with the help of a professional logo
designer is very important. A good logo, stationary and other material properly
branded with the help of a logo designer can bring in a lot of future benefits
once your business establishes a brand value in the market.
Keep the above in mind and answer any questions that may arise honestly. This
will help you make the right decision and will keep you in good stead while
working towards taking your startup to become an established business.
About the Author:
Joe Daley - Founder of Logo Contest