3 common mistakes that ruin startups in first year
We are in the age of entrepreneurship. Thousands of businesses rise everyday. Of course, like the sun they rise in the morning and set in the evening. Tomorrow, the vicious circle continues.
Truth is, 8 of 10 of these businesses are lit by young bootstrappers that struggle to make something of the dreaded economy. In fact, it is often one of their giant leap by kicking a business off the ground to face the possibility of failing.
Despite the huge sacrifice of tuition fee, a gamble with the education career and summing up courage to start a business, many young entrepreneur still fails woefully after the first year in business without any bulletproof insurance backup plan.
I sincerely give you my condolence and felt aggrieved for your previous failure. But, I am not writing to console nor cry with you. I am here for a more serious bargain. I only want to script some senses into your tick skull.
Do you know you author your business failures? Forget it. It is not the economy, not the recession, not the government, neither it is the bad policies, nor the tax agencies, but you.
Without any further ado, let me simply show you three vital stages where you are getting it all wrong with your startup business.
— Right Idea
No matter how much you have sacrifice for a bad idea, it can’t change the subject — it just won’t work.
One of a biggest problem many new entrepreneur are facing in current time is jumping on an idea and believing it to be original because no brand made it to the front page of Google with the same stuff.
Maybe you should retreat and rethink. Ideas are too cheap to think it is uniquely yours. And the fact that it is new and fresh to you doesn’t account for its success in the market.
The questions you are to ask are not of whether your ideas are original but how marketable are they.
I have meet entrepreneur with business ideas that are actually out of point. Clearly unbrandable neither marketable. The haul is that the idea is original.
Don’t confuse original idea with a sellable one. You may have a brand new idea (which is probably a lie you are telling yourself), yet not to be able to make a single sale.
It is just the high-time you rethought your business idea and deem it fit as marketable and sellable. Remember, it doesn’t have to be that new or original. The world only need an idea that works.
— Right Market
Here it is: you seriously need the right market too. Right market is not just the assumed psychographic of people that probably have no interest in you innovative products.
The right market is the realtime stats of who your products solve their problems. They are the ready demands your products should cater for.
One of the dying industry of our time is wristwatch repairs especially in less economically vibrant settings. I, myself, barely buy expensive watches not to talk of repairing them with exorbitant amounts. Definitely targeting persons in my psychographic is a wrong deal for any watch repair business.
Dear friend, rethink your business idea and fit it for the right market. Recognize the importance of ready demands before dishing your current career to face any sort of entrepreneurial pursuits.
In addendum, note the gateways to your industry and master how your products can break through the walls. No strategy is no market.
The more inbuilt a sales strategy is the better. Uniqueness of a product matter but more importantly is the market it seems to cater for.
Get your market in the right coordinate and the rest is to bill your customers in the right proportion.
— Right Billing
There are two fundamental assumptions that can limit the growth of start-up entrepreneurs
- Not worth paying for
- Not worth that much
The sooner you delete these limiting beliefs the faster you experience business growth.
First and foremost, anything that is not worth paying for is not a business. Definitely you are reading this because you are business and not running a charity organisation. If so, why do you assumed your services are not worth paying for.
If you are in the business of delivering values in whatever forms, you are ordained to earn from that. There’s no other way to it.
Realising you need money to feul you energy at business is your first step to probably billing and pricing of products.
Secondly, you need an accurate measurement of value against price.What makes your products worth more than the average market price or lesser than your competitors? On what grounds are your prices justified? What is the defining nature of your services or products, and what added value should cost the buyers the more?
The more clarity you could attain asking those questions determine how way you do with your billing schemes.
Entrepreneurship is not only about taking massive actions and unreasonable risks. There are making factors that account for business success which must be handle with high esteem.