The building of a business may seem a simple thing to start with, but in reality it is a tedious and difficult task. The new businesses usually are vulnerable and it so happens that they tend to fail even before soaring high. The reason for this is the lack of a selection process and inability to execute the business principles successfully. The entrepreneurs can gather experience by learning from their failures and try to avoid the mistakes that will help them stay in the trade.
A deep insight of the reasons for failure of startups
The main reason behind the failure of startups is a very debatable topic, however, we should understandthat they may not always be related to products or ideas or finance or infrastructure. These are the things that can be handled but the major problem lies in the dearth of like-minded peoplewho have the right attitude and willingness to execute. As the famous saying of Seth Godin states, “There isn’t lack of remarkable ideas but the will to execute the same.” Thus even with great ideas, exclusive strategies, and remarkable people, many startups fail.
A step by step analysis of the reasons why startups generally fail to succeed
Based on our understanding and experience while working with 100’s of start-ups over the past 10 years, we have boiled down to a few major reasons:
1. Lack of people with right attitude
The startups fail if they do not have the right team to work and so end up hiring applicants who are not competent enough to play a role for the success of the company. The requirement of a balanced team of workers will help it to diversify. Manpower and the skill are the basic factors for a thriving startup. Budding start-ups need like-minded people who can resonate with the founders and co-founders. At the same time, should there be a need they can always collaborate with external tech partners who are willing to invest their ideas and energies. To gather relevant information go through our previous blog on Find and Hire Developers for Startup [2021 Guide]
2. Lack of focus
If a startup cannot focus on their own development projects completely and get entangled with other irrelevant issues, then it will cause huge distraction. The lack of general focus is another crucial factor for the failure of startups. This problem can be solved by starting a business with ample market research.
3. Absence of proper synchronization among founders and co-founders
Amiable and like-minded founder and co-founder are vital as they will be able to share ideas and aspirations which in turn will ensure a smooth sailing of the startup.
4. Lack of far-sightedness
The business owners at times make mistakes by assuming that as soon as they create something it will be liked by people and gain market traction. But this notion is absolutely incorrect as you require a definite marketing strategy and the implementation of the marketing tactics. Marketing is considered to be the heart of every business and so you need qualified and skilled professionals who would execute the plans successfully. So be it development or marketing, should you opt to hire developers for startups, or collaborate with external agencies who can suggest the right scale-up strategies for your business, make sure that they are aligned with your idea and have the right mindset to deliver.
5. Lack of precision
The business owners of startups often pay more attention to investors than users. This is again a valid reason for their failure. However, if you have the right technology partner they will guide you to focus on the needs of the users. It is important to please the users of your products for the growth curve of your company to rise further.
6. Lack of willingness to execute the plans and strategies
Whether you are onboarding people or collaborating with external marketing agencies or hiring developers for startup, make sure the collaboration is with the right set of people who have the attitude and willingness to execute.Horror stories are everywhere.
So how can you minimize these risks of failures?
Considering the above mentioned points, we can fathom that it is crucial to have people with the right mind set and attitude and partners who have the willingness to execute. And whether you choose to have new members, onboard new tech partners, agencies, hire experts or hire a team of software developers, make sure they are in sync with your thoughts and idea. Read our last blog, “How to hire custom software development agency for start-up” to get a clear picture of how to make a wise decision when choosing external agencies or onboarding a tech partner who could help you with your scale up strategies.
The correct blend of right people who possess the indomitable willingness to execute is the key to success of all start-ups. We at Dreamztech ensure accurate focus, achievable goals, and then set the parameters. Our main objective is to strengthen the core business with the application of digital technologies to the existing products, services, as well as processes and functions.
Come and Collaborate with us today as we can be a potential game-changer for your company and dream project. Let us guide you through your start-up journey.
