Marketing. It’s in the top 10 reasons why startups are still failing, even in 2020. Business magazines, the news, social media and books are all full of business success stories with a myriad of examples showing how to transform a simple idea into a company. However, these companies are the exception to the rule that most startups in fact, fail, 90% to be accurate.
Maybe there is a lesson here to be learned from failure rather than success. If you’re reading this, you’re either already running a business or thinking of starting one, good. You’re doing your due diligence.
The fact is that most companies fail because they make mistakes that could have been prevented. Once you’re aware of those mistakes, you can take steps to avert them. Preventing these mistakes will allow you to work on things that actually create value and in turn, you can pursue success.
Want to prevent mistakes and build a successful startup? Prevent these 2 alarming reasons startups are failing in 2020:
Ensure there is a market for your product.
Market problems exist today which can probably be solved quite easily, it’s what most products vouch to do, solve a problem, speed up a process etc. But what you need to question is, is there a market need for that product? For example, while the product you offer may make a process more efficient, does your target market need efficiency or more clients? Yeah, efficiency over the long term may create more revenue, however is the problem that you’re trying to solve large enough that it needs solving? Ensure you have the right product, that has a large enough value that others will need it, the most important thing is to make your customer more successful by solving their biggest struggles, challenges and frustrations. Something nice-to-have won’t lead to a big business.
Marketing your product.
This bring me on to the second part, marketing. You’ve got the product in mind, it’s ready to go, now what? Knowing your target audience, knowing how to get their attention, convert them to leads and ultimately customers is one of the most important skills of a successful business. But an inability to market is a common failure especially among founders who were able to build a product but who didn’t relish the idea of promoting the product.
One of the biggest, most persistent mistakes startup founders make is assuming they don’t need to market and that their customers will find them. Many believe that marketing is a function they can do without for the longest time and they almost always use it as a last resort to gain traction. But thinking you can create a major, sustainable growth organically is very naïve. And while word-of-mouth referrals and direct marketing will bring in clients, they do not scale.
Obviously, the best type of marketing for you depends on your business and your target audience. But whether it’s traditional advertising, online marketing or content marketing, you’ll need something to scale, and that something has to be a strategic choice with clear KPIs and ROIs that are well measured.
You don’t necessarily need a professional PR team at the beginning, but you need to create buzz in social media and in the press about your company and products. Also, be sure that when you get published in the magazines and websites – that they are authoritative and popular for your audience. If your company cannot manage marketing properly, no one will know about your product, therefore no one will buy it. Spreading the word may seem a waste of time for some founders and more technical teams, but it is fundamental for a business to survive.
So, if you’re ready to market your product or need some assistance in creating a buzz about your company and products, why not get in touch? In fact, we’ll give you 5% off any service if you contact us through our site. No brainer.