Analyzing this information by CBInsights can help you and your business avoid becoming another fatality in the Startup postmortem. 90 out of 100 startups will fail. Why is that?
I will not stop highlighting the importance of a well-designed Sales and Business Development strategy for every Startup that aspires to Scaleup and eventually mature and become successful.
Designing your business on a piece of paper is a totally different story than turning your ideas and dreams into a successful and profitable business.
As we will observe in the main photo of the Article 50% of the top 10 reasons for #Startup failure are directly or indirectly #Sales related. And this leads to one main conclusion. Most young entrepreneurs spend more time developing the general concept and technical specifications of their product or service than they spend brainstorming and implementing Strategies that will ensure that their offering will attract the customer's attention and will ultimately prompt them to buy.
1) No Market Need = Sales. No market need or non-ability to effectively communicate your SP’s and USP’s? In Which market(s)? Perhaps you should have gone International earlier? Have you thoroughly thought of and designed an effective Sales Strategy? Are you perhaps paying more attention to the technical aspects of your product or service and far less to how you can effectively communicate its benefits to the end customer aka “ its salability ?”
2) Ran out of Cash = Sales. Your business will not succeed unless you are able to attract customers. Cash flow is vital for every Startup especially for the ones without external funding. If you do not have an abundance of financial resources at your disposal then your Sales and #Business Development Strategy should be at the very top of your list.
3) Get outcompeted = Sales. It goes without saying that your Salesforce should be focused highly competent and extremely competitive. This is the only way to ensure New and Repeat Business and a constant stream of Cash flow. Getting outcompeted simply means among others, that your competitors have more effective Salesforce than you. How do you hire your Salespeople? Are you looking for Professionals that simply “ fit” the job description or for people that can truly make a difference and bring your business to the next level?
4) Poor Marketing= Sales related. #Marketing paves the road for Sales and Revenue. What is your marketing strategy? How do you intend to support your new venture amidst a highly competitive #B2B environment?
5) Ignore Customers = Sales. Not much to comment here. Ignoring your customers = Grim business future.
Do not dwell on the mistakes of the past. Learn from them and move on because this is the only way forward.