Starting a business can be fun. Working from home facing on computers from the comfort of your homes sounds like an ideal solution. But based on the playing field in the competitive market, it might not be. Many people will quit their daily jobs and plunge head-first into internet marketing with no preparation. Failure is their only option, and they do not even suspecting the reasons why startups fail .
Business failures are one of the greatest mysteries in entrepreneurship. Nine out of ten startup businesses fail to survive the market. Shocking statistics, but it is the brutal truth. Now, let’s identify what factors lead a startup to fail.
Here are 7 reasons why the majority of online businesses do not survive the competition in the market.
Lack Of Planning
Startups usually fail because of the lack of short-term and long-term planning. Planning can help a business thrive in a competitive market. Having the right plan with lists of things to do and deadlines to meet can surely put startups on the right track.
Poor Management Team
Having a poor management team can cause problems that will lead to business failure. These teams usually make mistakes in creating a strategy. They often build products that no-one wants and fail to validate ideas before and during development. They also build weak teams below them, and the company will end up as weak, and eventually, poor execution will be rampant.
Another reason a startup business fails is they developed a product that does not meet the market standards. A product takes a few revisions before it fits the market standards. That is why entrepreneurs should plan and build a strong marketing strategies like content marketing, email marketing and many more that makes their products sellable and puts their business on top.
Many internet start up’s failing today because of the COVID-19 Pandemic. Small businesses, medium-sized firms, and mainly family-owned companies are also suffering from the impacts of the pandemic crisis. Here are some suggestions on how make your internet start up resilient in the new normal that is currently unfolding before us.
Lack Of Focus
The lack of focus will lose your business’s competitive edge. Making a broad strategy on a startup budget will be impossible if you are not headstrong in your business. One reason startups succeed is the ability to pivot quickly and make necessary adjustments.
Lack Of Capital
The lack of capital can lead to an inability to attract investors. It is also an alarming sign for startup businesses. It makes it difficult to grow your business and can cause day-to-day operations failure.
Macroeconomic factors examples are business cycles, wars, natural disasters, government debt, inflation, etc. And these factors can not be controlled by entrepreneurs. But your business can succeed in bad times with the correct way of using the opportunities laid in front.
Inability To Learn From Failure
Learning from failures is difficult. That is the reason many businesses fail because entrepreneurs are usually oblivious about their mistakes.
In conclusion, businesses can fail in a lot of ways. You make a lot of mistakes along the way that leads to that failure. But if entrepreneurs learn from those mistakes, understand those reasons why startups fail, and it takes a well-planned and executed strategy, a business will definitely succeed.
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