Nine out of 10 start-ups are set to fail, according to research and studies. An analysis of start-up post mortems revealed top 20 reasons most start-ups never take-off at all. While some are obvious and understandable, some are sad, like lost focus or lack of passion.
Australia is seeing a lot of ventures in entrepreneurship and creative start-ups in business, mostly in information technology development. But most do not survive the challenges and exit before they even made their grand entrance.
No Market Need
Most start-ups end quickly because their idea doesn’t solve anything. It doesn’t have to be radical, it just has to be useful. Nowadays, it is difficult to come up with an idea that hasn’t been thought of yet, which is why the demand for creative thinking is at its highest, not only in Australia, but all over the planet.
Ran Out of Cash
A major percent of short-lived start-ups had major financial hurdles they couldn’t solve. Adelaide-based business accountants suggest it might be because of lack in financial strategising and control of budget and resources. This can be easily remedied by consulting experts to help bootstrap the start-up.
Failed start-ups in Australia all have major gaps in their strategy. Certain gaps are okay, as they are still testing the waters, but oftentimes, what start-ups leave out for later –like finding low-cost alternatives, availability of components and infrastructure – end up becoming showstoppers.
Doesn’t Listen to Experts
A major blunder for business beginners is listening to free advice from the wrong people. With the hype over start-ups, the quantity of information has gone up while the quality has gone down. Although it might hurt the finances, start-ups should know it’s best to consult expert advisors to avoid a quick end.
While in every single successful start-up are probably millions of failed attempts, knowing the biggest pitfalls help not only so they can be avoided, but so plans can be shaped to turn the tables around completely.