Those who keep up with the latest statistics know that the chances for a new startup company to succeed are approximately one in four. There are 10 million startups established every year, 75 percent of which fail in the first five years. If you want to avoid such destiny and give your startup a boost, here are some of the most common startup mistakes you should avoid.
One of the main factors that ensure your startup’s success is to have certain capital to get started. However, underfunding is still one of the major, even fatal startup mistakes that you can . Studies show that majority of entrepreneurs don’t take this issue seriously and go into business with the money they got from savings, family, friends or banks.
Lack of Structured Plan
Everyone knows how important having experience and a structured strategy is. Still, approximately the half of startups fail because they lack competence to develop a well-structured plan.
Not Investing in Marketing
According to the recent research, 39 percent of American small-business owners don’t invest in marketing. In order to expand and attract more traffic to their site, setting up a quality blog, sharing content via social media, and employing PPC advertising is a must.
Lack of Product-Market Fit
According to Fortune, one of the main mistakes startups make is that they make products no one wants. A pool of failed startups insights determined that 42 percent of them identified the “lack of a market need for their product as the biggest reason for their failure.”
Ignoring Customer Needs
You don’t have to be an experienced entrepreneur to realize how important target demographic research is for your startup. On the other hand, the majority of startups get carried away with their idea that they put their customers’ second, which usually ends up with unfavourable results.
All in all, if you want to stay out of the list of the startups that failed, you need to keep in mind numerous potentially fatal factors. For now, these 5 examples could be a great starting point for you to build a firm marketing strategy and avoid most common roadblocks.