Starting a business based on an idea that is not fundable is a common mistake entrepreneurs make. Not only they are deluding themselves on trying to gain money for the wrong reason, but also into thinking they will gain any profit at all. If your start-up is already on the market and you have seen no revenue yet, there are a few aspects which you may have overlooked.
Customers don’t understand what your business or product is about
Many entrepreneurs are driven by the thought of making money by selling exclusive products. However, they commonly don’t know how to present their products in order to attract customers. If the product is one of a kind or niched, consumers must know what the product is about and how it benefits them. Presenting a unique product using jargon your customers don’t understand, it will only drive them away from your business.
You don’t understand your consumers
When starting a new business, entrepreneurs often don’t deeply understand the problem their product is solving for their customers. They simply believe they have a clever business idea and evaluate their customers from a demographic point of view. A successful start-up is based on knowledge on what hopes, fears and necessities consumers have from a certain product.
You don’t invest in content marketing
Today’s business trend is all about educating your customers and positioning yourself as a thought leader. Even in the early stages of a start-up you must provide relevant content about your business and products throughout blogs and social platforms. A content marketing strategy not only helps you form and maintain relationships with your consumers, but also complements your business goals and allows your new start-up to speak for itself.
You avoid partnerships
Sometimes, new companies need help from established companies by partnering up. But many entrepreneurs avoid partnerships because they underestimate the power of teaming up with a small company and growing together. Some, even aim for partnering with big companies such as Google or Apple, but in reality these companies don’t return calls to start-ups that don’t gain profit.
You are not persistent in making your name heard
Your business must have visibility on the market. So many start-up owners fail to realize the importance of personal appearances and marketing outreach. Talking publicly about your business or pandering the media to get your opinions on the latest topics, helps more in regaining product sales and revenue. If you simply wait for people to come to you or to magically find you on Google, you certainly lead your business to failure.
You rely on being an acquisition target for big companies
Many new business owners have the wrong impression that if they develop features for big companies like Apple or Google, their start-up will make a fine acquisition. Actually, big companies only buy outside features when their own have massively and publicly failed.
Relying on an acquisition is like gambling, you bid high stakes with no guarantees and hope to win. Therefore, you better focus on building a long-term business (based on a proper business plan) and follow a steady linear growth.
Any business should be profitable, so be smart when building your own. Take knowledge of your product, your consumers and set up achievable goals. Make sure you understand profit and loss accounts or business insurance and that you have all the information on the necessary filing and business advantages, such as opening a bank account.
For more information on how to start a successful start-up, you can contact Inc. Plan anytime for a free 30 minute consultation.