Startups fail for many different reasons, but few entrepreneurs understand what the leading causes of startup failure actually are. In this article, we’re going to cover three of the main reasons why startups fail and how you can avoid them before they derail your own business from the start. Just keep reading if you want to know more about them!
Part 1: The importance of a good business plan
A good business plan is vital to the success of your startup. A clear goal and steps to follow will allow you to reach that goal without wasting time or resources. Without a goal, you may find yourself trying different things without an end in sight. This can lead to burnout and disappointment when the company fails to take off. Setting specific goals with deadlines and measurable steps can help you stay on track. Keep the goal simple and stick to it and start drafting out the steps to achieve it. The steps might include contacting x amount of potential clients a day, coming up with a marketing strategy (such as target audience), developing promotional materials and ads. All of these goals should be broken down into small, manageable tasks that are updated as they are completed so that you have tangible evidence of progress.
By setting clear goals for your business, you can measure your progress over time so you know how close you are getting to achieving your long-term goals and can also help motivate employees and keep everyone on track for success.
Part 2: Reasons why startups fail (and what you can do about it)
The lack of a business plan and a marketing strategy is one of the most common reasons why startups fail. Without a strategy, companies struggle to find new customers, leading to dwindling sales and eventually no revenue at all. Goal setting should be an integral part of any business plan, as it helps businesses make decisions about where their resources will be allocated. This goals can range from increasing awareness of a product or service to turning a profit in six months time. Setting appropriate goals for your company will help keep you on track on new client acquisition. Also, goal setting also leads to greater employee motivation, which then increases your chances for success. When employees know what the company’s goals are, they have something tangible that they can strive towards achieving on a daily basis.
Part 3: Marketing strategy as an integral part of your business plan
Marketing and branding your business should be integral parts of your business plan. There are many ways to market a business, but whatever you do, it’s important to do it continuously. Whether that means posting on social media, producing entertaining videos that promote your business or product, outbound marketing, attending events to educate people about your business, etc, there is no one-size-fits-all answer for what works for all businesses. One key thing is, marketing continuously and asking yourself some questions to improve your marketing efforts. Questions like: What does success look like? What does the average customer want from the brand? What message should the brand communicate? With goals set in place, everything else will fall into place.
Part 4: Is it too late? Can I get back on track? Follow this practical steps.
No, it’s never too late to get back on track. Here are some practical action steps you should take to begin your business plan and get your business back on track.
- Conduct market research. The first step to getting new customers is finding them. Your business needs to be where they are looking.
- Invest in a marketing strategy. Once you have identified your target customer, go find out who they are and what they want from a product or service like yours, so that you can design the best offer possible for them.
- Update your website. If people are not finding your website, then how will they know about you? Make sure that your content speaks to their pain points and matches the tone of their industry. Talk with the heart.
- Evaluate your costs. Look at all of the elements of your business and figure out which ones are driving costs up, which ones could be scaled down, and which could be eliminated altogether. Find ways to cut expenses without cutting quality levels.
- Create systems to automate tasks. Hire a marketing agency to help you manage your social media accounts and create optimal online campaigns that will bring results. Focus on your strengths and customer satisfaction.
- Take a class to refresh your business knowledge. The more you know, the more informed decisions you can make when growing your business or developing new projects and products. Make sure to attend conferences and read industry news so that you are in-the-know and ahead of any trends.
- Keep improving your plan to grow your business. Look at all of your options and decide what new mini-goals are realistic for you, based on how far you are moving forward. Don’t be afraid to re-adjust and pivot your steps to accomplish it, but try to stay consistent with the ultimate goal of your business.
Conclusion
If you want to be successful, you need to set goals and take action.
A business plan will help you stay focused on your goals and marketing strategy will help you accomplish it.
By,
Jorge Santacruz
Marketing Director at Redizel
