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6 Reasons Why the Majority of Startups Fail

6 Reasons Why the Majority of Startups Fail

Startup companies are the pioneers of change, as they are responsible for creating new markets and improving old ones while earning a profit. But the success of startups is not something that comes quickly. It requires hard work and dedication. We always hear about the success stories, but it is important to know that about ninety percent of startups fail.

Several factors contribute to a startup’s chances of success or failure. Here are some of the most common reasons for startup failure.

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1. Not Getting the Best Team Together

One of the biggest challenges that startups have to face is putting together a balanced, strong team. Startups need to have diversity within their teams, but while achieving diversity, they often end up assembling a group that fails to work together. The success of a new business depends on having a dedicated workforce with a variety of skill sets. The people you hire should be able to share each other’s strengths while compensating for each other’s weaknesses. Choosing the best people when hiring the first few employees is a challenge that can make or break a startup.

2. Failing to Study the Market

Startups are built on ideas, but it is important to ensure that the core ideas and concepts are achievable and practical. Many startups fail because they try to build a business around just a concept. But consumers are not going to pay for just an idea. They want complete products that are functional and that solve a problem they have. Failing to do a thorough analysis of the market also leads many startups to invest time and money in developing a concept that is not a good fit for the market. Ignoring the realities of what customers want leads to failure, so it is important to analyze the market while implementing the idea of a startup if you want it to succeed.

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3. Creating Poor Marketing Strategies

Startups often fail to give marketing its due attention. Marketing is critical to the success of the business, so it is important to come up with useful and efficient marketing strategies. Businesses are only successful if they manage to attract customers, so it is essential to actively reach out to consumers through marketing. If you are selling energy-efficient refrigerators, then you can attract customers by sharing refrigeration guides that educate people about most energy-efficient appliances. There are so many offline and online marketing channels that you can use to promote your business.

4. Running out of Money

Money is also one of the primary reason for startup failure. New companies fail because they often do not take all of the required costs into account when they calculate the financial needs of their business. They come up with a starting cost and think that will be sufficient for running an established business. To plan ahead for your business, you need to think not just about start-up costs, but also about all the daily costs of running the business. You have to think about salaries, recruitment and other expenses. Plan ahead to make sure your business stays afloat, whether it is earning any profit in the first year or not. Getting a loan that will need to be paid back in the first few years of operation is also a bad idea. Most companies fail to earn big profits in the first few years, so make sure you have your financial costs covered if you want your startup to succeed.

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5. Not Investing in Security

Investing in business security is important, but most startups ignore it. The risk of failure is reduced if the business is secure. There are three types of business security you will need to consider: legal, insurance, and burglary/cybercrime. You should secure the physical premises from which you are working so that you can keep the startup’s property and equipment safe. You should also invest in cybersecurity for your business.

Insurance and legal protection are essential to minimize the risk factor in your business. Without adequate protection, your startup may fail to survive any setback it encounters.

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6. Losing Perspective

Startups can also fail because entrepreneurs are often so taken by their vision that they lose perspective. It is important to pay attention to trends in the market and to try to mold your image accordingly, because failing to adapt leads to many business failures. You should try to obtain investments from venture capital firms or angel investors who are familiar with your target market. That way, they can give you useful feedback and help you come up with better strategies.

It is important to spend some time understanding the reasons behind the failure of so many startups so that you can minimize the risk of failure for your own.

Featured photo credit: Bilan via bilan.ch

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Yasmin Rasidi

Copy Writer at Swotfish

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Last Updated on November 5, 2019

How to Use Visual Learning to Work More Effectively

How to Use Visual Learning to Work More Effectively

Knowledge is essential to become successful in life, your career and your business. Without learning new concepts and becoming proficient in our craft, we cannot excel in our chosen careers or archive knowledge to pass down to the next generation.

But content comes in various forms, and because how we learn influences how much we know, we need to talk about learning styles. This article will focus on how to utilize visual learning to boost your career or business.

The Importance of Knowing Your Learning Style

Knowing your learning style enables you to process new information to the best of your ability. Not only does it reduce your learning curve, you’re able to communicate these same concepts to others effectively.

But it all starts when you’re able to first identify the best way you learn.

As a college student, I soon figured out that taking online courses without visual aids or having an instructor in front of me led to poor retention of concepts.

Sure, I got good grades and performed excellently in my online exams. However. I discovered that I couldn’t maintain this performance level because I forgot 80 percent of the course content by the end of the semester.

There are several types of learning styles known to mankind. To give an idea of how visual learning stacks up against other learning styles, here’s a brief mention of some of the different types of learning styles we have.

The four most popular types of learning styles are:

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  • Visual learning style (what this article talks about).
  • Aural or auditory learning style (learning by listening to information presented).
  • Verbal or linguistic learning style (learning that involves speech and writing).
  • Tactile learning style (learning by touching and doing)

But for the purposes of this article, we will be focusing on using visual learning to boost your career or business.

How to Know If You’re a Visual Learner?

When it comes to boosting your career, business (or education), a visual learner is one who would most definitely choose shapes, images, symbols, or reading over auditory messages.

I’m talking about preferring to read an actual map when navigating to a new place over listening to verbal directions. I’m talking about discovering that you actually have trouble remembering what your manager said at the meeting because there were no graphs or illustrations to support the points raised.

Most people who struggle with learning probably aren’t leveraging their best learning styles. The earlier you identify how your learning style can boost your success, the less struggle you will encounter with processing new information throughout your career.

However, visual learning in particular CAN 10x your career or business whether it is your preferred learning style or not. And here’s why:

Several studies have arrived at the conclusion that the brain retains more information with the help of visual aids. In other words, images are directly processed by our long-term memory which helps us store information for longer periods of time.[1]

While some lessons can be performed orally, several concepts can only make sense if you have an image with an explanation of sequences (i.e learning about the human DNA).

Visual learning does use a different part of the brain and visual cues are processed by the part of the brain known as the occipital lobe.

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By engaging more parts of the brain during learning, you’re able to have a fuller understanding of concepts and facilitate better interaction with your immediate environment.

How to Use Visual Learning for Success

Here’re 4 ways to use visual learning to boost your career or business:

1. Bring back the to-do list. Then add shapes and colors to boost productivity.

We live in an age where computers have taken over virtually every aspect of productivity and most human functions. But written lists are making a comeback, and with an endless number of important tasks to complete, having a to-do list of tasks in order of importance can improve your productivity.

While coming up with a list is initially challenging, adding colors and shapes to written lists that you personally write and manage gives you an extra layer of assurance and boosts aids recall so that you actually get stuff done.

I have tried this technique in my work as a registered nurse and discovered that adding shapes and colors to to-do lists helps me delegate tasks, recognize where more work is needed, and makes it easy to cross off completed tasks at the end of the day.

2. Add graphs, charts and symbols to your reports.

Yes, it seems like more work cut out for you. However, graphs enable you monitor the heartbeat of your business.

Graphs and charts help you trend your finances, budget, and pretty much any data overtime. With the help of free and premium software available on the market, it has become easier to take plain data and in a matter of seconds, have relevant information displayed in different shapes and images.

As an entrepreneur, you can make predictions and allocate funds wisely when you’re able to see whether your efforts are rewarded. You can use colors and charts to delegate actions to members of your team and track performance at the same time.

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And when broken down into monthly, quarterly, bi-annual or annual goals, graphs and charts communicate what ordinary text cannot.

3. Effectively brainstorm with mind-mapping.

Mind-mapping is not new but I don’t think it’s been talked about as often as we do to-do lists.

With mind mapping, you’re organizing information accurately and drawing relationships between concepts and pieces from a whole.

Think of a mind map as a tree with several branches. For example, the tree can symbolize healthcare while each branch stands for nursing, medicine, laboratory science, and so on. When you look at nursing, you can further branch out into types of nursing; pediatric, women’s health, critical care, and so on.

It’s an interesting relationship; the more ideas you’re able to come up with for your chosen subject, the deeper you get and the stronger the association.

Mind maps really show you relationships between subjects and topics, and simplifies processes that might seem complicated at first glance. In a way, it is like a graphical representation of facts presented in a simple, visual format.

Mind mapping isn’t only limited to career professionals; business owners can benefit from mind mapping by organizing their online learning activities and breaking down complex tasks into simple actions so that you can accurately measure productivity.

4. Add video streaming to meetings.

What if you could double the productivity of your team members by video streaming your meetings or adding flash animation to your presentation at the same time?

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When you offer video as an alternative method of processing information to colleagues, there is a greater chance of retaining information because we recreate these stories into images in our minds.

For organizations that hold virtual meetings, it can also be an effective way to enhance performance during if people can see their colleagues in addition to flash animation or whatever form of video is provided during the meeting.

Is Visual Learning Better Than Other Learning Styles?

No, that is not the point. The goal here is to supplement your existing dominant learning style with visual learning so that you can experience a significant boost in how you process and use everyday information.

You might discover that understanding scientific concepts are much easier after incorporating visual learning or that you’re able to understand your organization’s value when projected on a visual screen with charts and graphs.

The overall goal is to always be learning and to continue to leverage visual learning style in your career and business.

More About Learning Styles

Featured photo credit: Unsplash via unsplash.com

Reference

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