Obi was one of the most struggling youths in his time. He was the perfect definition of a hustler – always on the road, seeking bread and finding a way how to carve out a niche for himself in the business world. His friends regarded him as the “only Joseph without a true dream” simply because his brilliant ideas for his startups never worked out; they all failed, sometimes, before they were put into execution.
What seem to be the problem? That was the question on his mind.
Just like our fictional character Obi, a lot of startups have faced a downward slope of failure – some even before they were executed (more of a incubation process). These startups were possibly big boy steps taken my children with little or no understanding to what they desired to venture into.
Below are six principal reasons as to why startups fail;
- Lack of proper research
- No plans or laid goals
- Government policies
- Improper use of the social media
- Friends and family
- LACK OF PROPER RESEARCH
Many startups begin with no proper research as to what they seek to do, their target audience and how to go about it. There are quite notable failures as a result of no research. Research in startups requires the background check and information to a lot of factors that’d contribute to your success as a startup. Many startups lack the basics from the period of incubation and execution of a particular idea.
Inconsistencies has poised to be the cancaworms eating up the stems of startups leading to their failures. A man’s sense of consistency is his strength in achieving set goals and objectives in and around his startup. Even the holy book had stated, “whosoever that puts his hands on the plough and looks back is not fit for the kingdom of God”; so, whosoever that desires to be a chief executive officer and is not consistent in following such plan and desire through, isn’t worthy of his foreseen dreams/desires.
READ ALSO: Inconsistent policies are killing African startups https://techcabal.com/2021/08/02/policies-african-startups-how-inconsistent-policies-are-killing-african-startups/
- NO PLANS OR LAID GOALS
The absence of proper planning or goal setting is a spiced up recipe or ingredient to failing as a startup. Many have no plans (as a result of no research) and their goals are not to a certain year or timing (whether short or long-term). Planning or possibly, laid goals are highly quintessential to the growth and development of a startup but when there is none, the presence of aimless wandering is visible and glaring to the face.
This seems to be as the chief of all. Financing a particular idea can be heavy on the head that wears the crown and many have dropped the idea around owning a startup as a result to that. Some seek to own a global business but the finance at hand, may be for a community project. Sometimes, the accessibility to soft loans, grants and funds are not available to persons seeking them, hence, many are forced to either recline to fate, preserve or completely forego the plan they already had in mind.
- GOVERNMENT POLICIES
Recently, Nigerian apex financial institution, the Central Bank of Nigeria (CBN) obtained court orders to freeze accounts of persons in RiseVest, Bamboo accounts as well as other FinTech institutions (just incase you missed it, kindly read here https://cresthub.com/cbn-secures-order-to-freeze-risevest-bamboo-accounts-and-others-over-illegal-fx-transactions/), such policies like this can militate the growth and development of a startup. There have been stringent measures put in place by the government and most times, the common man isn’t in view, leaving them to either fail or further on.
- IMPROPER USE OF SOCIAL MEDIA
The social media is your friend. Your tool. Your means of communication but if not properly used, it can’t yield result. The need for the use of social media would always be a staple factor needed in the 21st century market place. One cannot make certain steps in advertising, public relations, communication and more if the social media isn’t in use. Understanding how to utilise it for one’s benefit is a launch pad and practicing the reverse is a downplay to whatsoever is been scripted.
- FRIENDS AND FAMILY
A lot of family and friends have done more harm than good to startups. The ideas of “na our person, e go sure for us” have pushed startups into problems, debts and the need to sit and stare while counting the sheep to know if they’re up to a hundred. Family and friends have often taken to a stand of wanting the premium service without contributing a penny to the business growth. It is sometimes a hassle denying them the “favours” they do desire and sometimes, this denial can cause a riff between parties.
The above enumerated points are the reasons why Startups fail and if properly tackled, it’d yield more results.
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