Why Startups Are Failiing To Hit The Bulls Eye

While starting a new venture, every entrepreneur has a vision, backed up with dreams and passion that gives birth to an idea that is expected to transform lives. While these aspects powerfully help to establish and operate a startup, it does not guarantee a long term continued existence. It’s an adage that 9 out of 10 startups ultimately fail. In a fraught scenario like this, each entrepreneur, before getting the idea into action, should wisely rethink the challenges that can pose a legitimate threat to a successful venture. In today’s day and age, entrepreneurs who intend to exercise their idea in the business arena may have the required skill- set, proficiency, and passion. Alongside this, few may also have sufficient funds to fuel the growth. However, one thing that many lacks is the expertise of an expert who can easily escort them on a stairway to success, at a rapid pace. In May 2016, researchers conducted a worldwide survey on 200 failed startups to uncover the reasons as to why they couldn’t survive. As per the data received, 34% of startups failed to get enough traction needed to ascertain a strong foothold in the market. The explanation for the same could be that maybe the product or the services was not the next big thing in the market. It takes a combination of reasons to explain why most startups were not able to create a buzz in the market with their idea. During the survey, it was also observed that 25% of startups botched up to heave funding for their venture. This one again gets traced back to the poor visibility of the brand, maybe because of less funding. A prominent example - ‘Mazda Milenia was an upscale luxury car introduced by Mazda, Japan, an incredible model that had the competency to surpass any competitive car in the market in the early 1990s. Despite, being an amazing design, supported by interesting features and being cost-effective at the same time, it failed to attract buyers.’ The major rationale which led to the complete demise of the product turned out to be the company’s dwindling finances and their inability to properly position it in limelight.   As we examine the above-mentioned facts, it throws a light on an amalgamation of reasons leading to a startup’s failure to leave an impression.    However, here is the silver lining for any aspiring entrepreneur- you can start a new venture by learning from the mistakes of those 200 and many other failed startups. As a cautionary measure, incorporating the approach of PR will cater to an excellent start. Alongside this, it can act as a significant respite to handhold processes from start till the end. Besides, accelerating your visibility among the crowd, PR agencies can also help in placing your brand well ahead in the market competition. A PR firm can successfully help a growing organization by adding the ingredient of innovation and diligent efforts to a business model that contributes towards achieving a common goal. Tags: PR for Startups, Traditional PR vs Digital Marketing, PR and Inbound marketing