It's not enough to have a trailblazing business idea anymore. Between 80% and 90% of startups fail, according to several studies. Even ones that seem destined for success — those that have millions in funding and are backed by passionate entrepreneurs — can still collapse.
While startups fail for all sorts of reasons, there are five reasons that pop up over and over, including a lack of direction and an ineffective marketing strategy. If you're starting your own company, avoid these five common startup mistakes at all costs.
1. Lack of direction.
It's great to hire talented, excited, and ambitious people for your startup — after all, company culture is very important — but you also need to have people with experience who can guide your company toward long-term success. Sprinkle in a few seasoned employees who understand the nuances of growing a business from the ground up.
2. The wrong technology.
Some startups fail to understand their target audience and how they use technology. For instance, if you're creating an online source for retirees, then you have to recognize they would most likely prefer talking to a person instead of, say, text messaging or video conferencing. You can still add those features, but always take your audiences' tech habits into consideration when creating a product or service.
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