If you have stumbled upon this page, you are here for one of two reasons. Either you are interested in starting up a new company or you recently have tried to do that, and failed. I have gathered together three main reasons why 75 percent of startups do not succeed. They are: not enough passion, running a circus and incorrect pricing.
Reason Number 1: Lack of Passion
This is one of the biggest reasons why so many different types of startups fail. So many people are just looking for some fast money and don’t even care about what they are doing! These people that are looking for quick cash overnight truly needs to be awoken from their dreams – any real success or real money comes with hard work and unless you are truly passionate about what you are doing, you will get tired of waiting around. That is a really good way to waste all of your money.
For an example, let’s say you wanted to create a YouTube channel so you can be rich even though you don’t truly love making videos and creating awesome content. Let’s even say you bought a camera, a tripod, and Final Cut Pro. After about ten videos, you realize you still are not making any money, so you decide to call it quits. Guess what? You just wasted over $300 and a lot of your time. When starting up a business, you need to have the exact same concept. No passion, no starting it.
Reason Number 2: Running A Circus
This is also really important. When you are starting out a business, you absolutely cannot try to do everything at once. For example, When you first start up your business, you do not want to take on 100 clients at a time. After a couple of months and once you have built up some employees and team members, that would be a good time to tackle several clients. Since you have a team, you can offer them money or experience in return for completing a few of these assignments.
Reason Number 3: Incorrect Pricing
Pricing plays a huge role in startup companies. It is actually one of the biggest factors that play into gaining your first few customers. A lot of entrepreneurs have invested their hard work and time into their company, so they feel it is very valuable, but sometimes this can blind business owners and they might think their product has more worth than it actually does.
Although many people think the only form of incorrect pricing is overpricing, this is not the case. Offering free products can be really helpful to your startup company, but too many can do actual damage. If you send out so many freebies and aren’t charging anything, you will not make any money. With sales and profits in your first year being the upset most important factor to your company, it is not best to give away everything for free. Another problem with underpricing is the fact that if you always are sending out something free (which is often the case if you are running a blog or something online of that nature) people will think it will always be there. Since there is no urgency to see what you have to offer, no one will go to your site.
With all of that being said, if you are interested in starting a company you should go for it. You never know if your business could earn you billions of dollars. Just keep in mind that no one is going to hold your hand, and you have to put your big girl/boy pants on and do your research if you really want to see this thing get off the ground.