WATCH BEFORE YOU LEAP! - Passion is not enough
- osaghae osamuyi
- Aug 11, 2020
- 3 min read
There is a momentum that comes with starting a new venture or business. Sustaining this momentum is the greatest challenge. The zeal and all the hopes that feels ones’ heart when starting a new venture begins to evaporate away when the sales are no longer coming in.
Many patronages usually come from those who are close to us when starting a business. After the initial patronages are over turning this curve will determine if your business will survive or not.
Statistics abound on startups that never made it beyond this point. I have taken time to observe how store owners easily close shop after few months in business. As an entrepreneur I have had my fair share of failure. I am writing from a point of experience.
Many entrepreneurs do not think about the whole process. They are carried away like two young persons in love avoiding the critical questions that will ensure the survival of such business.
According to Forbes about 90% of most startups fail. This means that 9 out of 10 startups fail. This is a huge figure that requires every entrepreneur or would be entrepreneur to think before venturing into any business. Many times we get carried away with the butter flies in our bellies that we forget to do the necessary things.
Every optimistic entrepreneur needs a dose of reality now and then. Cold statistics like these are not intended to discourage entrepreneurs, but to encourage them to work smarter and harder.
Let’s get into why many startups fail.
Assumptions: Many entrepreneurs leave so many grey areas when starting out in business. There is so much assumption that we fail do our due diligence. We assume everyone will need our huge ideas without actually doing our research.
We assume that ones the product is great people will willingly pay. I remember when I started without OJTECH Technical services I thought customers would prefer a professional company maintaining their electrical facilities but they actually preferred their old way of doing things.
Many do not think long term: The second major reason why startups fail is that they “ran out of cash.” Carried away with the euphoria of starting a business many entrepreneurs starting out do not think long term. They only plan based on the available resources at their disposal.
My experience with Chalcedony Leathers has taught me that it is not just enough to have capital to start but also have money set aside to continue to oil the wheels of the business before the business can begin to sustain itself.
Whatever plan you are having you must think long term. How can you navigate the mucky waters of business? Think long term to reduce your uncertainties because there are so many uncertainties that await you.
Inadequate market research: If you are thinking of starting a business, the first thing you have to do is to conduct thorough and extensive market research. There has never been a business which grew successfully without going through the painstaking process of researching the market they are playing in.
The thinking that your products will sell because of its Unique Selling Point is more or less a fallacy. A great product may not always sell itself without doing the necessary home work. A thorough market research will help you understand the market and be able to tailor your services to suit the needs of your customers. Remember you do not sell what you want but you sell what the people need.
Segmenting departments: As a startup founder you must get yourself involved in the entire process of business if you want to succeed. The major mistake is to leave marketing to the marketing department. Any startup that will succeed must get everyone involved in marketing.
Everybody must be involved in marketing of the products and services. No one will get paid if the business is not selling enough. My advice to every startup is to involve “Guerrilla marketing”.
Guerrilla marketing uses multiple techniques and practices in order to establish direct contact with the customers. One of the goals of this interaction is to cause an emotional reaction in the clients, and the ultimate goal of marketing is to get people to remember products or brands in a different way than they are accustomed to.
In conclusion it is better to take time to do due diligence than rush into waters you do not know how navigate in. the purpose of this piece is not to scare anyone but to save you the stress of venturing into business and getting stocked in the process.
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