TOP 4 Reasons Why the Tech Start-up Can Fail
If you take a closer look into the very heart of the tech sector, you will be overwhelmed by the amount of junk floating about the start-ups here and there. Hearing and reading about it at every corner will definitely make you feel sick. On the other hand, according to Magicdust, a Sydney web design company, this information overload enables you to spot the low quality products and fake businesses. However, what if you are the one, who is actually going to work for start-up? Make sure to get to know top 5 reasons why your start-up can be destined to failure.
Reason 1. You raise money. However, your business has neither product nor capability to generate one.
A great number of investors carelessly throw cash into the sector of tech start-ups, when the teams they choose actually have no prior experience at all. They simply hope to hit the jack-pot. Well, investing always brings in certain risks. Nonetheless, when a dummy tech start-up doesn’t exert any effort to find the right client before wasting a bunch of bucks, it’s really primitive and pathetic.
Reason 2. You spend more time learning the theory of the start-up. You need actions!
According to the words of a wise business owner, one should spend no more than 50 per cent of the time mastering new things in order to make the start-up grow, and the rest 50 per cent on the activities that guarantee the business progress. Does your start-up really suck? Then you will definitely spend a lot of time learning about what you are actually doing without any efficient activities. Sorry to say, but this is the sign that you’re not running a business.
Reason 3. You have developed your product to satisfy your needs. How about everyone else?
OK, your dad and your best friends have purchased your product. Congrats! Now it’s time to search for the other customer. Doesn’t feel like there will be any? No one on the planet is actually willing to buy what you produce? If you have faced with this kind of trouble, then your tech start-up definitely sucks. Make sure to restart the process in order to find out what the world is eager for nowadays, add a pinch of creativity and you will make the perfect recipe. Well, you get it, do you?
Reason 4. You are not proficient in what it takes to contribute to the success of your business.
It’s so trivial actually. Just make sure to ask yourself – what are you actually engaged with in your tech start-up? Can you boast of having any solid technical skill or extensive previous experience within the industry? In case your answer is ‘no’, you suck as a business founder and it’s the right time to hand your role over to any other individual, who is competent enough for this segment.
Ladies and gentlemen, these are the top 4 reasons why your tech start-up may be destined for collapse. So, make sure to re-read them in order to find out whether your project actually sucks.