Survey shows that 85% of start-up businesses in developed countries fail within the first year. It is strange to admit this because these 3rd world countries provide a friendly climate in terms of laws and funding for new businesses.
Hence, the failure in new businesses can be attributed to the lack of full preparation by the entrepreneurs.
Listed below are 5 key reasons Business start-ups fail.
The first mistake an entrepreneur can make is not to make proper planning and budgeting. As far as business is concern, it is better to have budget surplus than budget deficit.
New entrepreneurs make the mistake of foregoing quality for quantity. For someone introducing a new product, the key thing is to make sure your product is not an inferior to the products already dominating the market.
It is one thing to have a good product; it is another to market the product. Marketing is a core part of making profit. New entrepreneurs need to be strategic when marketing their goods. You must be ready to steal customers for other brands.
Assembling The right Team
This is very important for every business start-ups. Start-ups need people who are in the right mind (physically and intellectually) to make things happen. Depending on your budget, your team must be people who are expertise in various fields.
Putting Price Tag
This part is really tricky and it often leads to the end of business start-ups. Entrepreneurs are often confused on fixing the appropriate price for their product. If you are offering a premium product, make sure that you offer it at a premium price otherwise you’ll be operating at a loss soon enough.