#1 Solving an irrelevant problem
The most common reason why your business strategy is not working properly is because you've created a product/service that no one actually wants.
Sometimes entrepreneurs just get into this fantasy world and the get so obsessed with the idea and foolishly thinking that everyone needs this product/service which in hindsight is totally wrong. It's very important for you to understand "will people really spend their money in this product/service?"
So the number one reason why many startups fails from the beginning is that they're trying to solve a problem that doesn't even exists. Solve real problems to get results.
#2 Not Having a Proper USP
Currently, there are many startups all around the world trying to play in a field where there are already established players, there are already struggling players and they're trying to add yet another and the same product and eventually end up burning cash, burning their savings and probably their time too. And later end up giving up on the idea of building a business.
Build a business with a real & strong USP. Otherwise, you're going to be just another business building its own grave. You'll never be able to sustain your business in this highly competitive market without any proper differentiator. The best thing you can do is to build something entirely different and new that you can create a monopoly in that segment of the market.
#3 Not Having a Crystal Clear Vision
An entrepreneur can easily get distracted by an opportunity. Many people start their business with one product/service idea. But when they don't get any desired response from the market, they get so desperate for business that they start trying to do everything that can make them money.
With that kind of a distracted approach, you can never build something valuable. You may get lucky a few times but in the long run you can't survive.
Distracted approach cannot sustain in the long run because there is no clarity of vision, there is no clarity of direction, there is no strategy, there is no system to do things. Then it'll become a game of generating income by doing everything possible for the purpose of survival because you've committed yourself for starting a business.
Such a business doesn't last very long. The business is not properly structured. If you run after every opportunity, you will not get even one. Don't be a person who gets seduced by every opportunity. Build something scalable, something that is sustainable in the long run. That's when you can build a real business.
#4 Having No Targeted Customer
When you're asked that who is your targeted customer, you know what's the worst answer is, "everyone".
When you say that everyone is your targeted customers, in reality, no one is your customer. You need to have the clarity to understand who is your targeted customer is, who has the money to pay for your product/service, who is facing the problem that you're trying to solve with your product/service.
That guy is your right customer. But if you're trying to sell it to everybody, then you just marked the column for having the most dysfunction business model. That means you don't have a clear strategy. And that's why many startups fails.
#5 Having No Required Skill Or Capability
There are many things in a business that gets effected by this problem. An entrepreneur starts business with a lot of enthusiasm but enthusiasm ≠ Skills.
Enthusiasm alone is not enough to produce a quality output to your customers. And when you lack the necessary skills or capability to produce a quality output to your customers, the faith of the market in your business goes down and your business model fails.
So, it's important for you as a business leader to learn the "skills" that is necessary to deliver a quality product or service for the customers. Remember this, quality is the most precious element for the customers in today's world. And the only way to provide that is by, at first, learning qualitative skill. This is the basic requirement for any new entrepreneur.
#6 Inconsistency In Execution
In most cases, we've noticed that the founder is doing everything. Everything is dependent on the founder. And it doesn't matter how hard working that person is, he cannot perform every exercise that a business needs to outperform in the market.
He can't be consistent in every department. And when there is inconsistency in a business, there is a lack of stability. And when there's a lack of stability, the business model fails.
Inconsistent execution is by far the most common reason why Startups fail. And this is one of the most important things an entrepreneur needs to understand is that doing everything by yourself is totally foolish. It's not a sign of being heroic, it's the most common trap entrepreneurs fall into. For a business to thrive, every department needs to be fluent and consistent in their operations. And only one person will never be able to run each department well.
These are the 6 main reasons why businesses collapse & models fails. We hope through these reasons you can identify your mistakes and take the required action to put your business back on track. And we want you to keep learning and help us to help you and produce a positive outcome.
Thanks for reading...
