FAIL? STARTUPS WHY · FAIL? 7 Quick reasons to the Failure of Startups "Success is not final,...
Transcript of FAIL? STARTUPS WHY · FAIL? 7 Quick reasons to the Failure of Startups "Success is not final,...
WHY STARTUPS FAIL?7 Quick reasons to the Failure of Startups
"Success is not final,failure is not fatal: it isthe courage to continuethat counts."
Winston Churchill
9 Out of 10 Startups Fail
7 Reasons whichcontribute to the
failures ofstartups & new
businesses
NOMARKETNEEDA SCENARIO WHERE YOUSTART A VENTUREWITHOUT DOING MARKETRESEARCH
01
IDENTITYMARKETNEEDNo Market Need = No Revenue
Lessons At Startup
01
How to identifyMarket Need?MARKET RESEARCH
Who your customers are?1.
2. What they want or need?
3.How much they will pay for it?
01
RUNOUT OFCASHBAD CASH FLOWDECISIONS OR INABILITYTO RAISE FUNDS
02
The mostimportantword in theworld ofBusiness is"Cash flow".
02
How to maintain A Healthy CashFlow?
Always have a financial Plan
Keep a close tab on your expenses.
Always think twice before spending on your wants. Remember, wants can waitneeds cannot.
02
NOT THE RIGHT TEAMTHE HUMAN RESOURCESTRUGGLE
03
23% ofStartups FailBecause of AnInadequateTeam
03
Get The Right TeamWith The Right Skills.
The right people are the most important asset of startups. Back the right team and thenraise the bar.
“Having the right team determines the path and outcome of a new venture more than any decision in the lifecycle of a company,”
03
Get Out-CompetedOUTWITTED BY COMPETITION!
04
Ignoring Competitors is also a recipe for failure in
19% of the startupfailures.
04
How to stay ahead OfCompetition!
Know the competitors - Find your competitors and their offerings.
Know your customers. Find the demand of your customers - is it lower price, more flexible service, the latest products? Revise your sales and marketing strategy accordingly.
Look after your existing customers.
04
PRICING & COSTSTRATEGYWHEN YOU WRONGLY PRICE APRODUCT!
05
We are competing in a very Price sensitive market.Price your product too high and you are in the process of losing the bulk of your customers. Under price, your products and you will be competing in a very low-end Market.
05
What is a "Bad Pricing Strategy"?
Poor Value Preposition
Setting too low prices to penetrate the market.
Setting high price, thereby risking affordability
05
POOR PRODUCTBAD OR INCOMPLETEPRODUCT
06
Building the wrong product is expensive and disastrous for Startups
06
How to develop agood Product
Build the right product before you thinkof building the product right.
Understand your product's valueproposition from the outset.
Ask the customer if he or she would useyour product not just if he or she coulduse it.
06
Bad Business Model
THE BUSINESS HAS NOTIDEA ON HOW TO MAKEPROFITS!
07
Failing To Plan Is
Planning To Fail07
How to design agood BusinessModel
Confirm that your product or service solves the problem.
Talk to industry experts and investors.
Plan and execute a pilot or local rollout.
07
“FAILURES CONTRIBUTE MORE THAN SUCCESS TO YOUR LEARNING CURVE”
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