Learn from Failed Startups
Everyone aspires to start their own business, get out of the confines of a job and enjoy the growth and success of their business. For this, many people start their own startups and some of them are successful and many are not. Now, the entrepreneurs who start these startups that are successful enter this business following their passion, but at the same time they enter the business world only after understanding proper planning, funds and market strategy. That is why they often get success.
But the people who start the startups that fail may be passionate, but they miss out on the research, funds and planning required for this business and in return for this mistake they get a failed startup. There are many such startups that started with big dreams and intentions, but because of the lack of preparation, they stopped in the middle and failed. Dezo, Frankly.me, Area Insights, Ali Kulo, Hotel Surround You and Lumos are just a few such names.
Dezo was a food tech startup that started as a food on demand company, but high competition and lack of funds made it fail. Frankly.me was a Q&A social platform that could not raise funds and shut down. Area Insights made highly advanced drones, but due to not having the right business model, this company had to shut down.
Eli Colo was an e-marketplace company whose founder had to shut down the company due to lack of clear vision. Hotel Surround You was a company providing last minute and short stay bookings which did not have enough funds and it also failed. Restaurant distributor Food Panda was out of the market due to its poor customer service. This restaurant aggregator could not track orders properly and could not set the link between two parties due to which it failed, whereas its competitors Zomato and Swiggy are successful due to their good customer service.
Similarly, the reason for the failure of Ask Me Bazaar was the many services it offered, such as Ask Me Pay, Ask Me Groceries, and many more such services which confused the users which affected its profits and due to capital deficiency it had to shut down its startup and Lumos which provided smart switching tech also remained a failed startup due to lack of right team.
So many such startups are started every year, but sometimes they get out of the field due to lack of funds, sometimes due to right team and sometimes due to high competition. The starting years are very challenging for every startup because almost 90% of the startups fail in these first two years and nine out of 10 startups fail in their first year itself.
To survive and grow in this high risk business world, it is important not only to know the success stories but also to learn from failures so that you do not make the same mistakes that failed businesses have made. Therefore, in today’s article, we are going to know about those seven mistakes of failed startups that you should not make and from which you have to learn and be successful as an entrepreneur. So what are you waiting for? Let’s move ahead with the article and learn from the seven mistakes of failed startups on Quick Support.
1. Lack of innovation
Before starting a startup, a problem is identified and then its solution is provided in the form of a startup. Startups are so popular because of providing innovative solutions to human problems. They have something unique to offer, but when startups lose their uniqueness and are unable to do anything innovative, they get out of the market.
2. Failure to identify a suitable customer base
A product may be of very good quality and unique, but if that startup is unable to identify a relevant customer base for its product, it fails. This is because when a particular startup targets a specific audience, it reduces its competition and market size, which helps it evaluate ROI i.e. return on investment, but startups that do not consider this evaluation important have to bear its loss.
3. Not understanding the importance of brand image and reputation
A successful brand reputation is essential for the success of every startup. It builds networks, promotes trust and generates money. On the other hand, a poor reputation causes the brand to fail very quickly.
4. Not being able to provide good customer service
While ordering any product online, apart from taking the details of the product, we also check its reviews and ratings so that we can know about its quality as well as service. The startups that provide poor product and service weaken the consumer relationship and spoil the brand value.
5. Not doing proper research of market conditions
Starting a business without doing in-depth market research has been the mistake of many unsuccessful companies. The result is that their products and services could not attract the market, which led to low client acceptance, which turned into failure. Therefore, it is important that startups should invest their time and money in market research so that the trends and problems of the target market can be understood and solutions can be provided accordingly.
6. In Efficient Team Building
Like any business, a startup needs a solid and disciplined team for its success. But startups that fail to build the right team with balanced skill sets and strong work ethics do not last long. Therefore, while building a team, you should keep in mind the vision, goals, values and required skills of your business.
7. Bad Partnership
Running a startup in partnership is considered to be quite beneficial, which is true to a large extent, but when this partnership is not equal, it becomes a reason for dispute. Due to lack of equal contribution in the business, disagreements increase and the business gets affected and this bad partnership also often becomes a very common reason for the failure of a startup.
And thus, these are the common seven mistakes that most startups make and fail due to one or the other of these mistakes. You also know that learning from your mistakes is good, but it can be even better if you learn from the mistakes of others as well. Therefore, learning from the mistakes of such startups that have failed due to their mistakes and entering the startup world with better preparation can be your first success. So move forward by learning from them, do not be afraid of failure and prepare fully to win and if you want to be successful in your startup, then set realistic goals, do proper research, prepare your business plan, analyze the risks and be prepared for them, remain passionate about your startup and do not give up.
So in this way now you know that having a dream of starting your own startup and trying to make it a reality is a very good thought, but a lot of efforts are needed to make it successful. There is a need to learn from the mistakes of many such startups who faced failure due to reasons like lack of proper planning, bad partnership, bad brand image and lack of innovation, which you do not want to do. Therefore, move forward giving importance to every aspect of the business so that you can get success. So with this, tell us in the comment section what is your opinion about this article, about this information and what are you feeling? Or you have any personal experience with startups and you have any personal advice for all of us, then please do tell us.
