COMMON CAUSES OF STARTUP FAILURE AND HOW TO AVOID ..

4 yrs

COMMON CAUSES OF STARTUP FAILURE AND HOW TO AVOID THEM

While there are a number of reasons why a new business can fail, most of the time it simply comes to one or more items on a list of common, but easily avoidable mistakes. At Startup Mzansi we work with thousands of entrepreneurs each year, so we really do know what works and what doesn't when it comes to starting a business.

Common causes of failure include:

1. Insufficient demand in the marketplace for the product or service

2. Not accurately identifying the right target customers

3. Failing to properly understand or plan for cash-flow requirements

4. Problems with costs or pricing that make the business unsustainable

5. Committing to too many overheads early in the life of the business

6. Failing to make sufficient sales due to poor understanding of sales & marketing

You can avoid these common mistakes, but you need to know how to do it...

Each of the reasons listed above can prove fatal to an otherwise promising business. But don't let that put you off.
Armed with the information and guide from us #startupmzansi, I'm going to walk you through a few simple steps you can take right now to ensure you steer clear of the usual failure points, and maximise your chances of success.

Here's a list of things that you're going to learn about at #startupmzansi:

1. Getting to grips with your business model and how you will actually make money

2. Isolating why customers will choose you over your competitors

3. Choosing the right legal structure and understanding your legal responsibilities

4. Identifying who your ideal customers are

5. Knowing and understanding your competition

6. Creating a solid business plan & financial forecasts

7. Understanding what capital your business needs to survive and grow

All of these points can be easily addressed and implemented into your business straight away. Once you apply each item correctly, you will start to see tremendous improvements in the performance of your business.

Quite often, just one or two of the items above can make the difference between having a highly profitable, successful business, and struggling to survive.
So the question is this; are you ready to start building a solid, sustainable business that gives you financial security and control over your own life?

This might sound obvious, but it’s amazing how often people don’t really understand how their business will work when they're challenged about it. I’m not just talking about having a vague idea around what you want to do; I’m talking about understanding the complete process behind how your business is going to make money. You need to have a solid idea of how you are going to sell your product or service to your customers in sufficient volumes and at a low enough cost to make a profit on an ongoing basis. All the while covering your own living costs, and staying cash-flow positive throughout.

#startupguy

Comment

ASUS Chromebook C204MA-BU0327 11.6-inch HD Laptop - Intel Celeron N4020 32GB eMMC 4GB RAM Chrome OS

Startup Domains

Executive Priority

Career Evolution

Professional Growth

Sanele Glasswork and Aluminium