According to the report from the Kauffman Foundationthe number of Americans starting businesses in 2010 and 2009 was the highest in 15 years. Also according to
href=”http://money.cnn.com/2011/03/07/smallbusiness/new_business_starts/”>CNN Global News
href=”http://money.cnn.com/2011/03/07/smallbusiness/new_business_starts/”>CNN Global News340 of every 100,000 adults launched a business each month, creating 565,000 startups monthly. Nevada and Georgia had the highest rate of entrepreneurial activity (510 per 100,000 adults). Considering these figures one can imagine the number of people who decide to start a new business everyday.
According to Dave McClure: A ‘Start-up’ is a company that is confused about –
- What its product is,
- Who its customers are,
- How to make money.
There are various major challenges that the start-ups face before starting the new company. Some can survive facing these challenges and overcoming it. But there are many who fail facing these challenges and eventually they give up. But simply giving up and thinking that it was a wrong decision taken by you to start a new business is not right. One needs to find the main reasons or cause for their start-up to shatter. There might be various reasons that cause the start-up to shatter. But through our evaluation we have tried to find the mistakes that are made commonly by the start-ups.
Funding problems, lack of planning, employees, marketing strategies are the common mistakes that are made and known to all.But here I will try to point out those mistakes which are often neglected or not taken into consideration.
1) Taking too long to release a product:
No one is completely perfect in this world. We often learn from the mistakes that we make when a product is launched. So waiting for the release of the product until everything is perfect is mere foolishness.
Solution: Release the product, wait and point out the bugs that you get when a particular product is released. These bugs can be removed during the next release. This problem of having bugs with the release is a problem that every start-up will face. Always remember the great saying that “Nobody is perfect and nobody deserves to be perfect!”
2) Making the product too complex:
Some start-ups may even feel that the product that they are going to release should not be simple. Complicating things will not help your product to be useful in any way.
Solution: Don’t try to complicate the things too much that even you will find it very difficult to understand. Keep it simple and think of how your clients can understand it without any confusion. Make a proper planning and keep it simple for your customers.
3) Paying no attention to customer’s feedback:
Some people may feel to go according to their wish and to be least bothered about the customers. They don’t wish to get distracted at this point of time and don’t want to get negative comments from the customers. So they decide to completely ignore the feedback that they get from the clients.
Solution: When you keep a step in this business world then always stand ready to face the negative as well as the positive feed backs of the customers. You always learn from your mistakes, so the feedback you get from the customers will help you to know about the product in a better way.
Plan out properly what you expect or want your product to be. It is indeed very difficult when you come up with new features for the product every day. It will rather confuse all the people who are working on a particular product.
Solution: Always remember a great saying by Alan Lakein, “Failing to plan is planning to fail!” So it is very initial that a proper planning is done before the release of any of the product. Proper planning will surely yield a good result for your product.
5) Lack of Customer Support Service:
Many of the start-ups concentrate on attracting more and more customers rather than rendering a good customer service to the existing one. They wish to target only the new customers for their business.
Solution: One of the important factors that will help your business to be successful is the Good customer support service that you will provide to the customers. It is indeed a fact that when you are able to provide with a good service to the existing clients then surely they will have a good word about you to others. It will be a growth factor for your business.
When you decide to start with your own business then there are many dreams that you have for it. And in fact it is very painful for the start-ups if their dreams collapse. On an average, The number of adults involved in closing a firm still exceeds those running established firms – at an average of 1.7 times. You can have funds, good employees and good strategies for your business but if you completely ignore the above points then surely it will land you nowhere. If you want to be successful in this rat race then surely you need to be different from others and avoid those mistakes that are neglected by all. When you avoid such mistakes then surely you will be able to reach the pinnacle of success!