13 failure factors to avoid in starting a business

In reality, most startups fail. In the past few years, I have been to more than 500 start-up companies have consulted or counseling. Here are some of the problems that I've summed up with all the flawed startups I've seen, and avoiding these problems can maximize your chances of success: a small or an unsustainable idea. Investors tend to be biased against entrepreneurial ideas with narrower potential customers. They prefer to face companies like Google, because everyone has a claim on Google's products and anyone can be satisfied. This is not a niche business, nor is it a very narrow market. Wrong market positioning. Most of the time, entrepreneurs want to do what they think are good ideas, but they never take the time to study the market properly. Investors, for example, certainly do not want to invest in the same area as the tenth-ranked company, preferring to invest in the first business. There is no marketing strategy that can be implemented. Entrepreneurs are often very focused on building their own products because their marketing strategies for marketing tend to be less than long-term. They don't realize that a clear and effective marketing concept can help them raise more money for growth. Business is not focused. If you can try to launch a variety of businesses on your own, don't work on a single business. Do not try to do a plug for a variety of plugs, or you will find yourself in which business is not unique. Don't know when to stop. If you're trying to get to the race, but no matter how hard you paddle, make sure you don't drag. Entrepreneurs need to support the bottom line of their own businesses, at all times to ensure that there is enough money and enough time to change the original plan. Without passion and persistence. If an entrepreneur is not exposed to their own products and enthusiasm, they will never really love their own start-up companies, and will not always pay attention to the success or failure of the venture. You need to have a persistent spirit, no matter what obstacles to entrepreneurship, will not give up, but a persistent to find a workable solution. Wrong or incomplete leadership. Never try to cram a Fortune 500 team into a small start-up company. Because their typical pies are different from a small company. What investors want to invest in is not a single entrepreneur, but a whole team to keep the company running. Disunity。 The company's management team should have the same entrepreneurial philosophy as the founders, and should inspire 15 to 20% of the company's employees. Instill in them the idea of loyalty. No mentors or advisors. Entrepreneurs should not be lone wolves, "they need to know if they are lost in this battle." Many cities have built ecosystems that provide mentors for entrepreneurs to start a business. There is no revenue model. I understand that many startups may not have a specific daily income model. But it is best to be clear about the achievable revenue model. The model requires extensive data collection and credible assumptions to attract investorsAnd make them feel excited and prove your current valuations. Lack of funds. First of all, the beginning of the venture to ensure that there is sufficient capital, which is to establish a brand, to achieve product value of the beneficial guarantee. Best of all, the money is plentiful enough to guarantee you a normal operation for the next 12-18 months. Whether you think you need such a large amount of money, you need at least 1 time times more than the funds in the control, so the problem will not be unprepared. There is no long-term road map and ROI. Whether you're investing your own money or raising money from outside investors, you need a clear roadmap and at least 10 times times the return on investment capital. Bad luck or wrong timing. Sometimes, entrepreneurship failure is not only the fault of the entrepreneur itself. In the bad economic environment, we often the best way is, first into hibernation, and so survive until conditions improve before the war. Attached: Author George Deeb is a partner in Chicago Red Rocket Ventures, which is headquartered in Chicago, mainly for start-up consulting and financial advice.