Surviving the cut throat market competition, where other businesses have been booming for quite some time, is definitely a challenging task!
When it comes to building startups, it takes a lot of courage and risk to venture into the unknown outskirts of a new business. Surviving in the cut throat market competition, where other businesses have been booming for quite some time, is definitely a hard nut to crack for the startup founders.
Developing a strong business presence and increasing customer engagement is at the core of a successful startup enterprise.
Why is it that so many startup founders lose their will to fight in the aggressive world of business from scratch? The reason being they are not properly monitored from the very start. Their teams are not properly coached and little to no time and money investment is made in carrying out a thorough market research.
If you want your startup to survive the market crashes and tackle challenges effectively, you need to steer clear of committing these cardinal sins.
5 Cardinal Sins of Startup Founders
According to Statistics Brain Study, “Incompetence was the most common cause for business failures in the US.”
1) Losing Focus of the Bigger Picture
One of the biggest mistakes startup founders make is they get lost in the plethora of information available on the internet. Separating the wreath from the chaff can be quite a difficult task during such circumstances.
Not necessarily all the information you come across in this online labyrinth will be tailored to your particular business objectives and natures. A good approach would be to take everything with a grain of salt.
Not every trick in the hat would suit your startup. Adopting a level headed approach is crucial while absorbing this hefty loads of information online.
2) Incorrectly Assessing the Customer’s Needs
Most startup founders enter into the arena prejudging the customer’s needs without delving into passionate and specific market research.
Behavior economics is another subject that can be explored to discover the roaring needs and demands of the customer. Getting a reality check is pivotal as no startup found has the experience or pre-existing customers to be able to accurately analyze the challenges and impending needs of the customers required to be fulfilled.
In today’s market of research backed development of customer engagement strategies, depending on hunches and beliefs is a recipe for failure for startup founders.
A little hard work and probing into existing facts and figures of the competitor industry, would go a long way for startup founders to avoid impending blunders. Results excised from the market survey can be used to make aggressive changes and switching gears in the initial strategy.
3) The “I Know What’s Best” Flaw
Another big blooper of startup founders is they are deluded with a perceived notion of knowing more than others. Exercising confidence and self-belief can go a long way but you do not need to get ahead of yourself.
The reason being in today’s cut throat market, there is not much option for mistakes for startups. Sometimes how a particular startup founder approaches a particular situation, doesn’t necessarily mean how the reality of the matter is.
That is why it is of utmost importance to test every strategy in the box and then collect consumer feedback.
Although it might seem to most startup founders their products are of the most superior quality and accurately meet the burning needs of the customer, reality could be far from the truth. Startup founders who spend all day sitting in an office cannot design products and build a brand without investing time and money to address the customer’s needs first.
This is the reason why most businesses use field representatives to pick on the brains of the consumer what they prefer in a product and what are their concerns. A lucrative strategic tool would be to ask questions instead of relying on preconceived notions before execution.
4) Implementing Before Studying and Learning
Another fatal flaw made by Startup Founders is very early on in the stage they start focusing on performance and results outcomes, instead of delving into the nitty gritty of the business models and current market dynamics or industry trends.
It is the lifeblood of a business startup to be on top of the research game. Knowledge is power and in the case of startup founders it is definitely money.
For this purpose, every startup needs to be aware of their industry competitors and failure rates. Knowing the reasons for startup failures catering to their particular product line helps in preventing a financial calamity beforehand for startup founders.
This will help them to tailor their approach avoiding pitfalls and gravitating towards lucrative approaches. For this purpose, startup founders need to lay strong emphasis on the existing status and trends in their competing market and location.
Age Demographics for Startup Founders in the US
- 51 percent of startup founders were in between 50 to 88 years of age
- In 2015, most businesses were owned by people over 50, while most entrepreneurs were under 50
- 33 percent start up founders were between age 35-49 and only 16 percent were under 35
- In 2013, 42 percent of senior citizens who were still working established startup businesses
- A 50 years old startup founder is twice more likely to gain success than a 30 years’ old
5) Incorporating Traditional Approaches in a Startup
One of the biggest faux passes made by Startup Founders is incorporating the traditional business models into a startup business. According to statistics, “Access to talent (63%) was the critical issue affecting most startups in 2019.”
This is a recipe for financial ruin for startups. Businesses that have built a reputation use a different and less aggressive approach as compared to the newbies in the industry. Startup Founders need to drive their workforce to constantly hunt customers.
Hiring top of the line Senior Executives in a startup won’t be able to work in your favor. The reason being the system needs to be built from scratch in case of a startup and we need to utilize new skills and a passionate approach rather than the traditional strategies incorporated in Corporate Giants. The workforce of a startup needs to be able to handle change as well as learn from trial and error.
The goal of this blog post is to support startup founders in creating a successful business. For more updates on similar topics, don’t forget to subscribe to our website