Common Mistakes of Start UpsSeptember 13, 2017 6:19 am
According to Forbes Magazine, 9 out of 10 start ups fails! Other studies, such as the Harvard Business Study, are more optimistic in stating that only 50 percent fail in the first year. They all agree, however, that making it past five years is a milestones that may mean you are solid enough to survive the horrible stats about start up survival. What are the stumbling blocks that make new businesses so risky? Well, honestly the list could go on forever, but here are a few of the more common mistakes of starting your own business:
- Cash Problems – One of the largest mistakes new owners have in launching a successful small business is the cash issue. Running out of cash can have many causes including not understanding the market, losing investors, pricing problems, or financing issues.
- Motivation – Starting a new company is possibly one of the most time-consuming and stressful events for any human being. Keeping the motivation going can be difficult, especially if key leadership dwindles or is also not motivated.
- Product Problems – Many new companies rely on one or two services or products. If one of those fails, so does the company. New businesses need to broaden their offerings and target larger audiences to stay afloat.
- Lack of Support – New businesses need employees and leadership personnel that are versatile and can handle many roles at once. Young companies many times do not have the cash flow to hire such individuals.
- Failure to Handle Feedback – In our society and social media-crazed land, feedback on poor job performance is almost instantaneous. With numerous review sites, your company can be ruined with negative reviews or the inability to react swiftly to feedback from clients and employees.
There are numerous reasons why good companies go under. Continue to read our blog as we follow these reasons over the next few months.