A startup can be undoubtedly called the buzzword of the century. People have started to believe in the thought that building your own startup is their only possible way of becoming a billionaire. However, not all startups succeed like Facebook, Amazon, Snapchat etc. Here are the top 5 reasons why most deshi startups fail.
Not having a proper business model
Having a well-analyzed business plan is the first and foremost thing a startup should have. The business model should include why they are building their startup, what is the product and how they are going to sell and reach to the people. The business model should have a proper revenue model and also how they are implementing the supply chain.
At times founders assume that because they will build such an interesting web site, product, or service, customers will beat a path to their door. That may happen with the first few customers, but after that, it rapidly becomes an expensive task to attract and win customers, and in many cases, the cost of acquiring the customer (CAC) is actually higher than the lifetime value of that customer (LTV).
Not understanding your customers
Market research is a crucial thing in building a startup. As a founder, you might think, “I have an idea of a wonderful product, this should work.”
But in reality, not every product will suit everyone.
You have a great concept of starting a service that will allow car owners to rent their cars when they’re not being used. Sure, it may work wonders in the USA. But will it work in Bangladesh?
Without doing proper market research, you may never know whether people would actually pay for the product. It is a futile project to build a product that nobody wants.
Not marketing the product the right way
Marketing your product is the only comprehensive way to make your products known to potential customers. You might have a great product, an amazing team behind it and a product that cater to the right customer group. But without a proper marketing channel, your product will fail to reach your customer. Hire the right marketing team or outsource it to the right agency. Hire consultants who can tell you the best way to market your product. Every little detail is crucial.
Not having a proper team
Many experts consider the startup team is the most crucial part of a startup. If the team members don’t have proper understanding amongst each other, they will not be work with each other for long.
Pathao had been successful because the team members had an amazing sense of understanding amongst each other, which dates over 10 years.
Not being able to adapt
Eric Ries model of Lean Startup is very popular amongst startup founders, which states the importance of having a minimum viable product. But a core concept they miss is that building the minimum viable product is not everything, they need to adapt it with time.
You might have a great concept and you’re ready to jump ship. But in this mercurial market, if you don’t make necessary adaptations, your startup is bound to fail.
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