In this article, we will try to explain in detail why new startups fail in Nepal. According to experts, new businesses that are successful in other countries are likely to fail in Nepal. There are some possible reasons for this which we have tried to cover in this article.
According to an international research journal, 8 out of 10 startups in the world close less than a year and a half after launch. This means that 80 percent of startups in the world fail. And the so-called successful business is only 20 percent of startups. Of these, very few are truly successful, and this is the bitter reality.
It is not appropriate to write all the reasons why a new startup fails in Nepal in one article, so we have divided this article into two sections. In this section you have written concerning the person and the next article, you have mentioned different national/international reasons.
How successful a new company will depend on many factors, including location, experience, and dedication.
In this article, we will mention some of the ten reasons why those who want to start a new startup will be listed in the list of startups that fail. Which are mentioned below?
Lack of market research
The answer to why a new startup fails in Nepal is without any research your business is getting started.
Remember these 3 rules — When a good product meets a poor market, the product loses; When a poor product meets a good market, the product loses; And when a good product meets a good market, then boom, where your product could be a success story.
How fast can my company run? The company may fail later when it starts working regardless of how the customer might view it. We need to take care of such market research. There is a lot of research to be done so that the company does not fail later. If you throw stones in the dark without information, you may regret it later.
Not being a customer-friendly product
Your startup will fail even if your product is not what the customer wants. If your customer wants to have coffee but you want to sell tea, then you are on the verge of failure. Market research helps you determine to your business meets the expectations of customers. Business people need to know whether they are customer-friendly or not.
Starting work without backup funds
If you don’t want any interruptions after you start work, arrange a backup fund before you start work. But that doesn’t mean you have to put money in the bank and start a business. If you need money, get ready and start working on where to find it, otherwise, you will get stuck in the middle. Although many startups are good and qualified, they cannot survive due to a lack of funds and suttle down.
Lack of time-relevant business
It is also important for startups to be time-relevant. Only people who know what is in demand for customers at a time can be successful. If you try to sell Black & white TV in the age of color TV, you can’t sell it no matter how hard you try. Please note that business time is relevant. If you call something out of date a unique startup, you are more likely to fail.
No startup relevant team selection
New startups also need a qualified team to be successful. No one can stop you from succeeding if you have the right team to do the right thing at the right time. but Assigning qualified people for one job to another may not get you the results you expect. So you have to have the courage to choose the right character for the right place. Make startup relevant team selection to make the company successful.
Marketing is the backbone of a startup. With the digitalization catching up I would suggest you go for Online Marketing using social media. Most people who they don’t get are the old form of marketing that is already outdated. And defiantly you need to do research for digital strategies for marketing. Most people who they don’t get are the old form of marketing that is already outdated.
Ignore Customers Complaints
After your item sells or provides any service, require some serious energy conversing with your clients and request their preferences. Assemble contributions as much as possible from your customer. You need to focus on your clients and adjust to their requirements.
In the event that you don’t without a doubt, it will cause hurt in the long haul.
Changing business focus
Many best business ideas go into rubbish. Why? The reason is the lack of passion among team members. 9% of post-mortem startup founders found that a lack of focus for a domain of startup failure. Business depends on where your focus is.
Starting without a business model
Business Model for any product and service can be a game-changer. I would go for a brand creation model. When a brand of a product is created, people/investors are going to come crawling to you. Brand value is more highly batter then product marketing value.
Competition is good but it could go wrong. With a large number of startups, anyone can sue your company even with a dumb legal reason.
we hope you got the answer to Why New Startup Fails in Nepal Part One. The qualified entrepreneur understands everything, what is needed for the business, tries to know what makes a difference in performance, and makes your startup successful.