Who hasn’t heard of or used Facebook?
Facebook is one of the success stories of a startup. Starting with Mark Zuckerberg and his friends, Facebook was originally just a simple application. It turned out later that this application became the foundation of a successful startup company. Mark Zuckerberg became filthy rich. In addition, there is also the success of Twitter, YouTube, PayPal, and many others. Then, a lot of people want to be founders of successful startup companies also. Apart from these success stories, startups have experienced more failures. It is said that only one in ten successful startups. Unfortunately, this story of failure is rarely discussed. In fact, we can learn from these failures.
There are several things that need attention, and one of these things can make a startup fall:
1. Wrong Market
We agree that we must make money when doing business. When a business doesn’t make money, then it’s like fishing on a mountain. Without a market, you cannot sell your product, and it means that there is no income. to make a product, we have to think from the market point of view. When we don’t think about it, our product will completely miss the target. So it is important to validate whether this product has a market or not.
Related Article: How To Start a Startup In 5 Phases To Follow
2. Pricing Mistake
To be able to run a startup requires financial balance. The price of your product is high enough to cover production costs but too low to keep customers coming in or out of reach of the market. This could be a financial disaster. Determining the right price for the product to be sold or specified requires price research with competitors so that your startup company has healthy finances.
3. Poor Marketing
Assigned to be the person who sells the company’s products to consumers so that the company benefits from every product sold. Duty to seek information and convey to the company the advantages and disadvantages of a product being sold. Based on the duties and obligations of a marketing person, it is vital when we are marketing. We don’t carry out our duties and roles properly. Several things will happen among their products that will not be channeled to customers because the product is not distributed, customers are reluctant to come, and the company will have no income and no more funds for production costs.
4. Timing
Launching a product that is not good in a hurry is not very good because of a disappointing first impression, but when it is too slow, it may also miss a market opportunity that others have exploited.
Based on some of the points that I said before, it is hoped that the potential for startup failures can be reduced or detected earlier to increase the potential for success of a startup.