Some of the biggest gambles can occur in the infancy stages of a business, whether it’s taking that initial plunge or investing in growth. While some of these risks turn out to be the best move for startups, others have potential to stop the business in its tracks. In fact, a whopping 90% of startups fail. Some reason are:
1) Failing to acquire enough funding- To get a business off the ground you need money. Careful planning and budgeting in the lead up to starting a business can help to prevent this from happening.
2) Misjudging market demand- A lack of market need is the biggest reason startups are unsuccessful, making up for 42% of failures. A good starting point is conducting thorough market research before making any steps towards setting up a business.
3) Entering an overly saturated market- It’s a crowded marketplace out there, full of businesses vying for the attention of the same consumers. Distinguishing your product from your competitors is essential for getting heard over all the other noise being made.
4) Not hiring the right people- Unless you’re a one-man band, other people – a business partner or employees – are going to have a level of influence over your business at some point.
5) Trying to grow too fast or too slowly- Quick growth is what many entrepreneurs hope for when they set up a new business. After all, growth leads to profit.
Some of the biggest gambles can occur in the infancy stages of a business, whether it’s taking that initial plunge or investing in growth. While some of these risks turn out to be the best move for startups, others have potential to stop the business in its tracks. In fact, a whopping 90% of startups fail. Some reason are: 1) Failing to acquire enough funding- To get a business off the ground you need money. Careful planning and budgeting in the lead up to starting a business can help to prevent this from happening. 2) Misjudging market demand- A lack of market need is the biggest reason startups are unsuccessful, making up for 42% of failures. A good starting point is conducting thorough market research before making any steps towards setting up a business. 3) Entering an overly saturated market- It’s a crowded marketplace out there, full of businesses vying for the attention of the same consumers. Distinguishing your product from your competitors is essential for getting heard over all the other noise being made. 4) Not hiring the right people- Unless you’re a one-man band, other people – a business partner or employees – are going to have a level of influence over your business at some point. 5) Trying to grow too fast or too slowly- Quick growth is what many entrepreneurs hope for when they set up a new business. After all, growth leads to profit.