We all at some point must have come across stories like,
I thought I would make millions of dollars through my startup, but I failed miserably. Nobody ever told me that 90% of new companies fail within two years of taking their initial steps and the outcome was that I failed in my first year.
Well, these are all true stories of aspiring people who wanted to make it big in their entrepreneurial debut, but could not do so and failed miserably. Such times for sure are testing ones and you may end up feeling cheated because people always talked about the brighter side of the story and no-one ever talked about the flip side.
In this article we have tried to compile a few reasons, of why first-time entrepreneurs fail? What makes survival so hard in the first year of business? and, What exactly should one do to avoid a situation like that?
- Understand and know your end user before building your product: Always try to built your products based on what the customer would be interested rather than relying upon the assumptions and feature lists of your competitors. Its always a good idea to test run your product before the final product launch.
- Manage your expenses well: As a first time entrepreneur, it is very important that you understand very well where to spend money and where to save. It is very important to spend more money on professional design of sales material, marketing tools, and paid consultancy rather than on office infrastructure and hefty salaries.
- Understanding the code is important: Try to get yourself involved in writing and understanding codes even if you are from a non-technical background. Don’t rely completely on your technical team as far as codes are concerned. Start coding in order to know how things get implemented. So, either partner with a techie co-founder or just get yourself involved in understanding the technology.
- Improve your sales know-how: While we say that, it is very important that you understand that the sales process is not just about good public speaking but addressing the concerns of the customer. You should know how to sell your product to the end customer, this, not only helps you learn the sales process, but also gets you acquainted with customers’ real problems.
- Learn to paint the bigger picture: Mere focus on money can lead to shortsighted goals. As entrepreneurs your first and formost goal should be to solve a prevelent problem, and money is just a by product. Aim at solving problems and making life easy for the customers, money will follow eventually.
Hope the above points will be useful for all the aspiring entrepreneurs out there. So, just fuel your dreams with passion and keep working towards success.