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You might have heard the startup failures and to add, these startups were having a unique idea, sufficient funding, and right technology partner too yet somehow they couldn’t survive. This made you screwed and you might have lost in thinking what would be the actual reason for their crashing. You too feel afraid in your startup and a myriad of nightmares come in your thoughts. But being panic and getting afraid is not the solution rather find out the reasons for failures of the startups that are causing trouble for success.

Apart from an idea, fund and technology here are the few reasons that may be responsible for startup failure:

• Market Problems: It has been observed that many companies do not invest proper time in market research as they think that it is a waste of time. But spending time on market research is always recommended by the marketing gurus. The marketing experts say that as long as you will spend the time to understand the requisites and approach of the market, it will help you to figure out the issues and solutions for your startups.

To avoid failure, one must know the market in-depth and should invest time in proper research of the market that:

1. What does the market demand?
2. What are you offering?
3. How uniquely do you stand above your competitors (consider service, quality, mobile app development, and catchy website)?
4. What features can attract customers?
5. What features make your customers to get fixed to you as your lifelong customer?
6. What issues can you face in the future?
7. What are the solutions your startups do have?

• The Need for the product Varies: Time is the king. At one time a product that looks so important to the customers might see the pitfalls in its sales after a few times. In e-commerce, many retailers sell seasonable items and products like sunglasses, sunscreen, etc.(needed in summer season),  that are needed during a particular season and later on such products lose their importance. This affects sales severely. Similarly, in the software world, if your mobile app or website is built with the old versions and customers are seeing the advanced version available then there would be no chances that they are going to stick on your mobile app or website. For this, you must assure that the services you are offering must be worth the customers all the time. It is like offering a Blood Pressure controlling pill (must have) rather a mouthfresh (not required regularly). It is up to you, what will you select….
• Failure of CAC and LTV Rule: At the startup phase, the entrepreneurs try to hook the customers to their business that obviously requires the cost of acquisition. The business expects this cost in return when the customers become their lifetime customers. But sometimes the CAC (Customer Acquiring Cost) becomes more than the LTV (Lifetime Value of the customer). This takes the startup to see the downfalls. The accounts of your business must be strong enough to calculate the CAC and LTV so that you can reach the expected ROI and above all, you must offer such services that customers could not leave you. The lifelong customers contribute more to ROI than the new customers.
• Inefficient Management Team: If you are selling the right product in the right market so that customers are reaching you daily and you are about to reach your expected ROI but what if the management team behind you, could not balance each department. This can take all your business and sales down. The inefficient team can ruin all the management that would be needed to reach, serve and maintain the customers.

The inefficiency in the work strategy would be reflected in the startup results. The business would see the downmarket soon. Therefore an efficient team that can work precisely from scratch to the last stage is requisite for every startup even for the established business too.

To Wrap it up

Though every entrepreneur puts the best efforts in establishing the startup, when they miss the basic essentials, they find their business at the shaken path. Apart from having an idea, proper funding, and the right technology the startups need to be more concentrated on the factors mentioned above. The idea must be validated in the market, funds should be invested properly and working with the right technology partner is essential. The needs of the customers and market change on a regular basis, therefore, you must be flexible and adaptive to work with the changing market. The mobile apps and website for your business must be adaptive to the new versions and upgrades. For offering advanced services to your customers, you must keep updating your business with new technologies and compatible with the changes.

We at hvantage understand the changing rule of the world and therefore work with the adaptive technical team who easily grasps the trending technologies and work for providing the advanced services to its clients. We build compatible mobile apps and a website that easily works on every platform.

Come to us to create the next big thing together!

Click at www.hvantage.hk

Or Contact us at info@hvantage.hk