We usually only hear about startups that are successful. When a startup manages to take off, business media love to point to a success story about a small business that made it big. But entrepreneurs who see the behind-the-scenes struggle of running a business know that not every startup is a success.
Far more startups fail than survive. Other entrepreneurs can learn some important lessons from others’ past mistakes. If you are an entrepreneur, these are some of the most common reasons why startups fail.
1. Lack of testing
For any would-be startup, testing is crucial. Testing does not necessarily mean running tests on a new product. It can also mean identifying how to access a market, evaluating your competitors and researching potential barriers to your success.
2. Not enough teamwork
A startup that does not run on teamwork is at a disadvantage from the get-go. Sometimes the business world mythologizes lone entrepreneurs who appear to have created a startup from scratch, but teamwork is necessary for any successful project.
3. Weak persistence
Small businesses are bound to run into several road blocks. Sometimes, the only thing that can conquer these road blocks is the founder’s persistence. A startup is bound to fail if an entrepreneur does not persist to make it successful.
4. Not seeking help
Sure, a startup is only as good as the team behind it. But every startup can also use a healthy dose of outside help. This can come in the form of an accountant, a business attorney or a mentor. A Georgia-based source that has experience in business can offer excellent advice in business formation, financial planning and legal details. Accepting counsel can help a startup on its way to success.