When people launch a new business, they do so with high hopes and expectations. What they don’t want to happen is for their new enterprises to fail. Especially before they’ve even had a chance to grow! The sad truth is that happens to thousands of people each year.
If you’re starting a new business soon, what are the telltale signs you need to watch out for? Here are some of the most common ones:
Little to no market research
Just because a friend or loved one thinks something is a good idea doesn’t mean it is! Before starting any business, it’s crucial that plenty of market research gets carried out. And that should include researching your target audience – not just people you know!
Lack of business model
How do you plan to grow your business? Some folks might have a good idea for a product or service. And they might even have determined a need for it in the market. But, how do they plan to make money? There are many business models one could have, such as charging a one-off fee or a subscription.
Some people assume they could do something like Facebook or Twitter. In other words, they offer something for free, then charge for it once they’ve got a large user base. But, people can seldom pull off such a business model these days anymore.
Running the business like a hobby
You might enjoy making something. You may even have charged some people for your hard work. But, running your business like it’s still a hobby just won’t work. It’s important to think of the economics and viability to ensure long-term survival.
There are some other reasons why a startup might get doomed to failure as well. The following infographic depicts a few more examples:
Infographic Created By CreditWorks