Poor marketing, or lack there of is the number one reason a startup fails. One aspect of a new business that is often neglected (or considered last during business planning) is the marketing plan and a customized marketing strategy. There are a lot of strategies that a startup business needs to implement in order to grow the business – and a multitude of channels to feed these strategies.
2. LACK/LOSS OF CAPITAL
Going into business without enough capital or running out of capital during the first three years is a major factor in startup failure. You have a vision, but no real financial stability to get the business growing. Maybe you and your partners can’t manage your share or you did not budget or plan properly – many reasons that can contribute to this situation.
If you have not done your research and checked out your competition, this is sure to happen. Market research is a very important aspect in developing a marketing plan, and is the only way to study the market, your competition, and potential clients. You must always be aware of market trends and stay ahead of the game.
4. PRICING/COST ISSUES
You should know the going rate for products and services similar to yours, and create an effective pricing table that is both competitive and profitable. This would be determined during your market research. What is your competition pricing the same products? Again, be aware of market trends.
5. POOR PRODUCT
Your product or service is considered poor if it does not meet the demands of your current customer or market. The concept may be great, but if no one wants the product, it’s a done deal. Market research, including conducting a market and SWOT analysis determines if your product and/or services are in demand, or if you need to make some modifications in order to be more marketable. You should evaluate your products/services against current market demands regularly.
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