Why does failure happen?
Is it the lack of experience? Not doing enough? Or is it simply because failure is like a bad guy trying to show his ugly self every time?
Every startup faces series of failures, some too bad that it makes the business fold, others too challenging that it strengthens the will of the business owner. Failure is an inevitable phase for startup owners.
According to the U.S Bureau of Labor Statistics, 20% of businesses fail in the first two years and about half of every new business fold up in the first five years. While there are a lot of things that lead to failure in business, the inability to look past the failure has made many businesses fold up.
What else leads to failure in business?
This article examines seven reasons startups fail in their first 5 years.
The fear of failure
It is quite funny that some of the fear of most startups is what often leads to their ruin. To succeed in any field in life you must be ready to fail. Failure is an inevitable phase in the journey into success. What is often celebrated as success is the product of the cumulative experience gathered during the failing stage. Failure is not like the bad guy trying to soil the reputation of a good girl, it is a learning phase that either teaches you or destroys you. How you respond determines whether or not you’ll remain a failure or scale through. This is an important point every startup must take into consideration. As much as no entrepreneur wants to fail, it is inevitable.
However, facing failures is not easy. In fact, no one wants to be associated with failure. It requires every ounce of your will to get past the stage and learn. This is why most people who are afraid of failure never press further when they eventually fail. Experiencing the failure itself reinforce their fear and sometimes increase the fear of failure. When you condition your mind that the journey is going to be a rough one but the light will definitely shine at the end of the tunnel, failure would be an experience that should increase your knowledge of how business works.
Lack of a business plan
If you fail to plan, you plan to fail. Every business, no matter the size must have a business plan. Have a plan on the amount of money you would spend, what you would spend on, and how to spend the money. The business plan does not have to be a book, it could be just a one-page business plan. The key is to have something that can guide or direct your business decisions.
Be organized
Running a business is like being a circus ringmaster, at some points, you would be too overwhelmed. However, no matter how tasking running a business is, be organized. Have a daily to-do list and list your task according to the order of priority. Being organized helps to enhance your productivity.
Partial understanding of the market
One of the leading factors that trigger business failures is not fully understanding how the market works. Understand the market, understand the customers you are building your business for, and understand the extent your product is desired. Also, understand what triggers your prospects’ decision, how your product can appeal to this trigger, and above all, how to satisfy your customers.
Trying to do everything yourself
There is a popular saying that “jack of all trades makes you the master of none.” Most business owners feel they understand everything that needs to be done and never bother to seek external advice, not even from business owners as themselves. Don’t try to run your business yourself, wisdom and knowledge lie in the multiplicity of counsel.
Don’t start hiring immediately you launch the business
By far, the biggest mistake a startup can make is hiring too soon. Hiring full-time staff for your business is like placing 50 litres of water on a 10 years old child. Two things would happen: the child either suffer a sprain or collapse. It is a different thing when the startup hires a part-time and a subcontractor. It is another to gather full-time employees. In the first few years of the business, understand that the business is not ready to take hard responsibilities like paying staff. Instead of full-time workers, part-time would do.
Get on platforms where you can meet promising investors and get contracts
The right investor can catapult the growth of your business. This is why it is advisable to have a working strategy for your business. Get on platforms that can help you meet these investors. Some of them are B2B platforms like LinkedIn and Bixex.
Bixex is a professional global platform designed to help business owners, entrepreneurs, freelancers, business professional, and career experts grow their contracts and finance. The platform is designed for both local and professional connections between businesses. On Bixex is the B2B Matchmaking section designed to bridge the gap between business to business deals, transactions, and collaboration.
If you are a business owner, entrepreneur, or business expert and not yet on Bixex, what else are you waiting for?
Get started by downloading the app on Google or Apple Play Store or visit www.bixex.com
Bixex is simple, safe, and secure.
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