Establishing a startup company is not as easy as you might think. No wonder if there are may businesses that end up bankrupt. Are you one of those entrepreneurs who still stuck between trying it or not. You might be motivated because there are already many “unicorns” in almost every country. Hence, you should widen your insight about startup entrepreneur news. There will be bunch of issues to discuss like why do many start-ups fail? This is very interesting to talk about because it can be used as an evaluation.
Lack of Understanding about Market Needs
The first reason why do many start-ups fail is lack of understanding about market needs. People may have fresh ideas but it is possible that they do not know whether the idea is useful or not. According to this case, there is an improper decision you make. It can be concluded that understanding market needs become a must. Therefore, do market research to convince potential customers that your product is worth.
What about Your Business Plan?
Evaluate business plan becomes the next reason which often discussed by startup entrepreneur news. Failures that occur might be because of wrong business plan. If you find that your business doesn’t show its progress, you can look at how the plan you have made again. Remember that in building your startup company, you must be carefully plan all the aspects. Think of everything starting from concepts, target markets as well as the solution to the market needs.
Lack of Funding
Another mistake that becomes a focus on startup entrepreneur news is lack of funding. Some of you might be don’t agree. But building a startup is different from when you use e-commerce in making online business. Yeah, it doesn’t always need much capital to start online business. But if you understand about business, you will think of raising enough funds before start business. It’s because there will be strategies you need to realize in attracting your potential customers. Giving big promos is one of the examples which might even be a problem especially for those who have lack of funding. For those who want to survive in this business, you really need to think about how to monetize strategies to earn money.
Failed to Compete
Business competition becomes the next important point in almost startup entrepreneur news. If you ever failed in business, it might be because of the way you compete with others. There is actually no harm to use the similar business strategy. But you also need to remember that customers will be attracted to something that offers more benefits. So, make sure that your business is more innovative than the competitors.
Determine Incorrect Market Prices
The last focus on startup entrepreneur news is about market prices. This is also as important as the previous reasons because it has to do with profit and loss. Every entrepreneur should understand well how to plan proportional price of the product. Then all you have to do is identify the market. Classify all costs incurred by the company including tax.