Whether you are looking to start your own business or just want to learn more about how they work, check out these three things most people don’t know in the world of starting a business.
- 90% of Startups Fail
There are endless reasons startups fail but the remaining 10% that are successful have earned their place, with a little bit of luck of course. One of the biggest reasons the 90% can’t make it to the promise land of sustainable business operations is due to inability to reach users. This can spiral down to multiple reasons such as marketing failures or funding problems although the list goes on. Another major reason for the 90% of failures is that there is no need for the product or service. The idea may be fantastic but if the market has no need for it, no one will purchase it!
- It’s All about Timing
Going off of the previous point, if the market needs your product, this helps. If the market doesn’t, this hurts. Success stories of startups can be written around the time and place that they were created. Having a great idea just as the world is looking for the next big thing will put your business above the rest. On the opposite end, forcing a business into the market is not an easy thing to do.
- Funding Doesn’t Grow on Trees
Optimizing your funding is key when starting a business, especially when proving to an investor that your product or service is going to make it big and turn profitable. This is no easy task to say the least. A less common area related to funding can be overfunding, which can cause the startup to work less hard. The idea of funding is based around raising cash during milestones and spending it when needed. There are ways to help businesses decide when and where to spend money as well, such as a startup mentoring company. Having a sustainable business plan with consistent job creation happening within shows that your business is on the right path. Other options related to funding can include CAPCO programs, which assists in the creation of high-wage jobs in their local areas. To put it simply, they translate tax credit into investments for small businesses.