Why Start-ups fail and how can you avoid it?
Why Start-ups fail and how can you avoid it?
Starting a new business to be an innovation and rich in enthusiasm but are failed when it comes to arranging of capital. Also, we believe that if companies fund runout, the company goes bankrupt and its game over.
But that’s untrue at all; the fact is that start-ups don’t truly go bankrupt until their Founders go bankrupt.
So how can your business avoid failure? Thus, to avoid the financial missteps, the start-up leaders should follow these ways to eliminate financial problems:
When you provide a service with superior quality than what’s available in the market and a price your customers can afford, your business will find its way to success.
Cash Management is very important, the start up must not try to bite more than it can chew. They must have excess cash available which will help carry through operations during tough times.
Access to funds in important. You must have access to credit such as banks, friends who are willing to invest in the company. You always try to do the best you can for the business and when you grab a big order, you must have the resources to execute the big project. If need comes funds should be made available in the quickest time possible.
You may be providing superior product or service but you still need bring it to your customer’s notice. Marketing your service is important. Your business might be too small to afford its own marketing team, you can hire good marketing companies to do the job for you.
A wise man once said “Network is more important than Networth”. Networking with right people and having the right contacts can take you a long way.
