the reason startups fail: avoiding the sale

The Reason Startups Fail:Avoiding the Sale

Too often startups avoid confronting the customer in favour of spending too much time

on development.

Getting those initial sales is

Essential.

Building what they need

Startups can get too focused on product development rather than market demand.

Finding out what services are in demand and then developing a product or service to suit that can yield better results.

This can mean that a startup has an established client base during development

42% of failed startups failed due to a lack of market demand.

Product development in a vacuum might yield fantastic results from a development

point of view…But if there’s no one out there willing to buy

it, where did all that money and time go? https://

www.linkedin.com/pulse/reason-startups-fail-david-ricketts?trk=prof-post

https://www.linkedin.com/pulse/reason-startups-fail-david-ricketts?trk=prof-post



Starting Small

It can be better to tailor your product to a specific niche.

This can produce a small, dedicated customer base – only you can meet their specific demands.

From this, a startup can diversify and expand while maintaining a steady revenue stream.

This is a great time to get case studies under your belt whilst you have the time

and are trying to establish your position in the market.


Sales as a Foundation

Startups that are too product orientated often lack personnel with sales experience or the infrastructure to support a new sales team.

A sales orientated stance from the get go ensures that as soon as you are ready to go to market, you deliver to clients and customers.

Don’t let your product become a white elephant: big, fancy, and a great conversation

starter,

but you’ll be haemorrhaging upkeep costs while you try and

find something to do with it.https://www.linkedin.com/pulse/reason-startups-fail-david-ricketts?

trk=prof-post

Look Ahead

This isn’t a quick cash method of building a startup: focussing your product to a small client base means initial revenue could be low.

Building slow and focussing on small scale sales at first can help guarantee consistent revenue and lead to better stability in the long run.

Did you know that Amazon didn’t turn a profit for the first nine years of their

existence? Now they are the undisputed kings of online retail.





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