What are symptoms that startup going fail?

Introduction

Larby Amirouche is a pioneer in internet marketing and e-commerce, widely respected as an industry leader and trendsetter. Which means that he has valuable insights regarding startups. He knows how important it is to consider a lot of things before entering the business world.

Startup businesses usually succeed if they follow through certain guidelines and strategies that enables the business to grow exponentially. But not all the time, entrepreneurs are lucky to have a striving business. There are factors that hinders them to achieve success. Listed below are some of the general problems young entrepreneurs encounter while starting a business.But before that, let us talk about what startups are all about.

 Startup:

A startup or start-up is a company or project started by an entrepreneur to find, develop, and validate a scalable economic model. By its basic form, the usual startup tends to be a small operation, with initial funding from the founders of the business or their friends and families.

In the early stages of the conceptualization, startups have little or no revenue at all in the early stages. They have an idea that they have to develop, test, and market. That takes a considerable amount of time, money. Startup owners have several sources to tap to do a startup:

• Traditional funding — the sources included are small business loans from banks or credit unions, government-sponsored small business administration loans from local banks, and grants made by nonprofit organizations and state governments.
• Incubators — often incorporated with business schools and other nonprofit organizations, provide mentoring, office space, and seed funding for startups.
• Venture capitalists — actively seek out promising startups to bankroll in return for a stake in the company once it gets off the ground.

Reason why a startup fails

There are a couple of reasons why a startup fails. It is not the same for every business but there is general information on why most entrepreneurs fail on the launch of their business. Here are some of them to inform people why it fails and how to avoid failing.

Not knowing your niche and customers:

If a business doesn’t know their niche or even their targeted audience, then it would be the first downfall of a startup. Not knowing the niche or customers leads to disastrous events that would lead to failure. It is critical for owners to be concise and specific on what niche the business should go with.

Knowing the target audience will enable entrepreneurs to anticipate the needs and wants which they can incorporate on the business. Assimilating information gathered can reduce mistakes and can broaden the perspective of the business making it consumer-friendly.

Procrastinating too much:

Brainstorming and procrastinating are two different things. Simply saying, thinking and overthinking are also different from each other. Procrastination won’t be progressive, which is why it should be avoided. Instead, think aggressively on what strategies and tactics one should use to make the business strive.

Procrastinating can also be a cause of competition beating the business on trending campaigns. Wallowing on something especially in a business setup will never be progressive. Focus on the important things and concentrate on how to develop the business in the upcoming weeks. This will ensure the survival of the startup and can lead to a thriving business.

Not knowing what to do next:

Planning the first couple of weeks for a startup is not enough. Thinking ahead of time should be important because when the time comes and the business hits a roadblock, then the owner does not know what to do next. It is critical to have contingency plans for a business in case something went wrong.

A business owner should always know what to do next, may it be a positive or negative outcome because of the problem. Planning and strategizing on what to do after should also be a priority.

Cannot adapt to trends:

If a business is being set up to be hard as a rock and is not applicable to changes because of trends, then it is destined to fail. Change is the only constant thing in this world, especially for startups. An owner who is not ready to adapt in the fast-paced world of business is accountable for its failure. Learning to adapt and consider possibilities is a must if a business wants to succeed and survive during these trying times.

Slow execution of plans

Even if a brand has plans, it is nothing if not executed correctly. For example, a business has 100 plans on how to succeed, yet none of them are being applied for the business. Then essentially, those plans are useless. Without proper execution, plans are just wasted into a mere form of garbage. Which is why it is vital to do the plans accordingly in order for a business to accomplish its goals.

Lack of focus

Focus and concentration is required for a business to triumph. There are a lot of competitions in which some are more focused on others. Reason why some businesses succeed. Without focus, a brand can lose sight of what is important, trending, or what changes should be made to adapt and survive.

Concentrate on revenue

The main reason entrepreneurs are doing startups is for the profit. Businesses are made to make money and revenue, which is why the focal point of business owners should be how to make money.

If owners started planning, strategizing, brainstorming, all the works, yet forgot to account the ROI or return of investment, then it has failed before it started. Prioritize the revenue, and everything else will follow.

Conclusion

It is crucial for entrepreneurs to know these kinds of things for startups. Larby Amirouche knows the early symptoms of failure and has plans that can help businesses strive nowadays. He is considered as a digital marketing expert knowing things even before they are publicized. Think like Larby and the business will grow.

Originally Posted: https://medium.com/larby-amirouche/what-are-the-early-symptoms-that-a-startup-is-going-to-fail-8814bd396520