Why do Startups Fail
Easy to start lazy to maintain
Yes, ecommerce is a domain where it’s very easy to start a business, Ideas are like ocean and we keep getting ideas every day in and out, but most of the ecomerce startups fails just because of the only reason that the founders are lazy to maintain the effort.
Since we have seen lot of ecommerce success and the kind of funding they get and kind of report we see about how much the founders are worth and their journey. People get excited about it and just start looking for like-minded people around and think about a ecommerce business with a condition that they are not quitting the current job.
The idea is to quit the job once their business is successful (Success doesn’t have any benchmark or criteria)
Ecommece is an emerging trend, and one of the or only the easiest and cheapest way to start a business, this is what most of the starup minds think and jump into it, with a concept or a business idea of “Selling stuff/services through website”.
Once the idea is born it goes into different process on how to be executed, and every ecommerce guy things the website is the first place, registers a domain, gets his hosting plan, gets a template and all set, your business is almost ready.
from here the content is built, customization is done through drag and drop (like in WP), add all the plugins needed and installed, few can afford to get a freelancer to do the web customization, and few products are added based on their own research, shopping cart is done, everything seems to be going well.
Here starts the big trouble and this is the point where it determines your success and failure.
From here it’s only about getting people to buy you products/Service, or before that just getting people to visit your Store/site. Now one starts to look at SEO, PPC, Banner Ads etc., so cost of these really shoots up. so looks for cheapest marketing tips, doing on their own, part time working on link building , book marking etc. whatever self-study and implementation they can do, which would fetch few visitor for the site for which initially one would be excited and happy to see google Analytics and reports of visitors by country state etc.
Now it’s a wait for visitors to buy and become your customer. This is where the founders really patience is tested and their efforts and evaluated. This is the point which determines a successful startup or not.
Lot of startups founders quit at this point, since this is a phase one should think of investing, remember in ecommerce investment is more towards marketing than on the initial setup itself.
Since there are no customers or very little customers, founders quit. Less customers could be for any of these reasons
No Proper Research
Yes before even thinking about starting a business, one should have proper plan on what should be done, if you are planning to sell products from your site, then you should know whom should i focus to as a customer an why
No Proper Visibility
Without proper promotions you can’t get visitors to your site, and the ecommerce conversion rate is very low, it could take 1000 visitors for you to get one sale
There are lots like you who started a business, and you are competing with big guys also, and you fail to answers few question why one should buy at your place compared to others
Not ready to take Losses
When you start a business, you should be ready to take losses. If you need people to buy your product then u better be giving it out at least cost possible, this is what everyone does during the start of a business, work for zero profit
Yes, this is one major issue with business selling products, people tend to forget that customers like proper servicing and you should be ready to provide what one needs in timely manner
These are very few reasons, and there could be lot more other reason for one to quit the business. But all in all the lack of proper knowledge before starting a business is the main cause for failure. With proper knowledge in hand and consistent effort one can see a successful startup.
Please comment below your thoughts.