Trivial Causes of Startup Business Failure – Business failure, of course, is often found, especially businesses that have just started and started, failure to start this business can occur from several reasons.
Starting a small business is an alternative that is often done by people these days. In addition to increasing small business income, they also do it as a contribution to advancing the national economy.
But it is not uncommon for you to just start a business, small businesses have just failed. I wonder what, trivial things that caused the failure of the small business in question?
1. Lack of capital
This one factor is clearly the main cause of the failure of the small business that you started. For this reason, before starting a business, it is better to first research everything. So that capital does not just run out of production processes.
Take, for example, when you sell hampers in e-commerce, you immediately target vendors with premium quality goods without paying attention to how much capital you have, not yet the money used for packaging and freebies, and also costs for promotions. You might not have returned your investment, but your business is out of business.
Do not choose a business with a large possibility of loss. Although fortunately there are not too many, at least you can still use it as capital to turn your finances again and the production process for the goods you will sell.
2. Wrong in determining the target market
Market research is very important for you to do, here. Don’t get wrong in determining your target market. Setting wrong targets will only make your small business fail quickly.
When you want to sell perfume, decide who you will target as a buyer. Also find out what their general purchasing power is. If you are targeting adolescents aged 15-17 but selling perfume for IDR 250 thousand, – and above, you can be sure, how will your business continue, right?
It’s different if your target market, those who have worked from the age of 23 years and over, their purchasing power tends to be higher and the items you buy they need much more.
3. Lazy to do promotions
We will never know where our buyers come from. At least do a small promotion through the various social media that you have or ask your friends for help. There are also many, you know, now some celebrities want to do endorsements without fixing prices, they even do it for free.
Find out who they are and try to contact them if they are willing to promote your business. This method is arguably quite powerful for bringing in buyers. So, if you are starting a small business, don’t be lazy to do promotions.
4. Not prioritizing the quality of the goods or services being sold
Take for example you are in the thrifting business. You just take a picture of the product, then you just snap out of the sack and just snap it. Explaining the details of the clothes you sell is also incomplete.
You did not include whether there were defects and so on. Also send to customers without going through the washing and ironing process. Yes, guaranteed bad customer reviews directly to your business. Always try to prioritize the quality of the goods, how cheap the prices of the goods are, no matter how small the size is, always give the best.
Show your customers that the goods you are selling are manufactured or packaged with love and dedication. Guaranteed, customers will be coming day by day.
5. Mentally weak and easily give up
Just started a food business by registering to be affiliated with one of the online motorcycle taxi applications, uh the first day was lonely. The second day is also quiet, then on the third day you feel like giving up.
You can’t give up easily and have a weak mentality if you want to enter the business world. Try, do a promotion in the environment closest to you. The tighter the promotion and also because the factor of the delicious food you make is not directly by word of mouth, it will spread by itself.