Your business idea is great, but most startup failures happen because of making the same mistakes, and all sinks before it becomes something. Creating and maintaining a startup is a demanding endeavor. In a third-world country like Pakistan, the situation complicates by a lack of capital, political uncertainty, an economic crisis, and a volatile currency.
In 2022, Pakistan saw an upsurge in startup investment. But during December, the total investment reported was low and slowed down. In the same year, several startups either left Pakistan or shut down.
Startups began cutting staff and downsizing operations in the 2nd quarter of 2022. That included Airlift, which terminated 31% of its employees and started pulling out of cities. It is worth mentioning that Airlift was the startup that first secured significant capital for Pakistan. Swvl, Vavacars, Retailo, and Truck It In quickly fell in line. So the first step would be to research and analyze startup mistakes you want to avoid.
If you have heard, “being an entrepreneur is not for everyone,” or “you need to have that mindset,” and you believe this to be true, your startup will fail. Anyone can innovate. Anyone can become an entrepreneur. With that, those who do pursue entrepreneurship face some of the toughest challenges in the industry. But that does not mean your startup will fail. It’s a venture. So, naturally, more work goes into setting up a business than most individuals know.
It is abnormal for a company to be so in harmony with the constantly changing market factors that it can glide by with little hard work. So should startups analyze markets? Why do startups fail? How many startups fail?
The reasons are numerous, but here are some things you need to be aware of before starting your own company:
- A number one cause is failing to predict market demand.
- Running out of investment and personal funds is the second most common reason.
A startup’s success rate is contingent on several variables, including more than providing cutting-edge commercial solutions to issues. Significant contributors include:
- Ineffective Product-Market Suitability
- Absence of Technological Skill
- Lack of Brand Management
- Expertise of Startups
- Limited Cash Flow
- Operational and Regulatory Issues
- Lack of Economic Outlook
- No Flexibility or Expandability
Statistics suggest that 90% of startups fail, while only 10% succeed. That is 9 out of 10 startups failing. As per data, 30% of startups with investment backing fail. But there are some crucial things to remember and ask yourself to keep you from making the same mistakes:
- Prepare for the worst because anything can happen.
- Be flexible, adaptable, and willing to tweak or change your plans according to the situation.
- Ask yourself questions.
- Is my idea a real-world problem solver? How important is the problem you are solving? Who would pay you to solve it?
- Are there existing solutions? How can I differentiate from competitors? How is the market doing? What is trending?
- Track everything you do.
- Have a balanced, dedicated team.
- Share your responsibilities and be open to feedback. A collaborative working environment with your team and partners is more helpful than you’ll know.
- Make contacts and network in your industry.
- Do not expand too fast. Slow and steady wins the race.
- Be open to learning to become an expert, and don’t be afraid to fail.
If you want a successful startup and to avoid startup mistakes, you must first understand why they fail. As a first-time inventor or a serial entrepreneur, you must know your exact goal, your niche, and your target audience inside and out. We learn in entrepreneurship courses that starting a business can feel like a full-time job. You quit your job to start your startup, but you’re working on it around the clock. This can lead to fatigue and downtime.
There will be occasions when things seem to drag on, and you wonder why you chose this path. As a result, having a balanced mindset when starting a business is essential.
