Research shows that 90% of startups file for bankruptcy within 3 years. Of course, if you are starting a business, I don’t think you would care if I told you something like this. But in order to make your business successful, it is important to listen to an experienced person and avoid the risks that can occur. If you haven’t read the tips for startup entrepreneurs, check out the link above.
This time, I would like to explain the reasons for the 5 things that start-up entrepreneurs miss the most.
The structure of products and services does not meet the requirements.
The main reason for business failure lies in the quality of products and services that do not sell. Products that do not meet people’s needs will not sell, no matter how advertised. Even if it is sold, the profit is low.
Let’s give an example.
The buyer was not interested
When selling a product, you need to be Afghanistan Email Lists interested in the product and study the consumer market. Consumers should be attracted in such a way that they will not buy the product if they don’t have it.
Market demand research is not always accurate. It is biased that a product that is likely to be in demand on the commercial market in the next 2-3 years, but is not in demand now, will be in high demand in the future. Another problem is that there are very few startups who have enough capital to get them through the first few years.
Think too positively.
For me, from my experience of watching the start-up stages of many companies, there is one reason that is different in Japan and Mongolia. When you start a business, you don’t realize how hard it is to sell.
Without finding a customer, they spend a lot of money on buying new furniture and furnishing the house, and do not earn the expected amount of income.
Obsessed with increasing the number of users
Who is a profit-oriented marketer?
Most people mistakenly think that CU Lists selling to many customers at a low price will attract more customers rather than increasing the percentage of profit per customer.
Successful entrepreneurs focus more on the profitability of their products and services than on the number of customers.
The business model is very bad
When making your business model, you should pay attention to the following 2 points.
Did you do marketing to find new customers?
Is there an increase in the cost of selling products and whether there is a profit /price policy/
Profit per customer and product depends on whether selling expenses are spent.
As the cost of sales increases, it will be difficult to pay the debt of the company. It is important to increase the cost of sales of products within 1 year and make a profit in the future.
The management team must be incompetent
The main reason startups fail is because of a bad management team.
Characteristics of an incompetent management team
Bad strategy: Bringing in unsold goods meant less time was spent on research and ideas. Bad research leads to bad strategy.
Real process clumsiness: Poor creative engagement in sales, schedules don’t work according to plan.
Poor teamwork: The success of the company is not only the responsibility of the management team, but also the joint result of the cooperation of all members of the company. It is important to build a skilled team.
Low fixed assets
If the amount of capital is small, it is easy to take risks, because especially if you are a director, you should spend very carefully. Abstract finance is implemented in a few steps below.