4 Founder Mistakes That Make Most Startups Fail

1) Believing that revenue is optional This is indigenous to the tech startup scene, but it definitely crops up elsewhere too. There is a mythology, perpetuated almost entirely by the Silicon Valley VC set, that a startup is somehow a new and trendy concept whose primary model is basically "raise lots of money, acquire as many users as possible, and then figure out how to monetise them or sell to someone who can".

It's a seductive idea because, for the founder, it bypasses the daunting prospect of having to worry about revenue, sales and all those other scary things. This feels great of course, because it allows the founder to stay in their comfort zone and indulge the satisfaction of making the perfect product without having to rely on sales to get there. In reality, it's merely delaying the day when the company has to face rejection and criticism from potential customers.

It's an approach that taps deep into our human fear of rejection and failure and promises a comforting alternative where these fears can be avoided altogether. It's such a powerful fear for most that an enthusiastic, widespread and elaborate mythology has developed around this type of "business model", with the sole purpose of trying to affirm something that we want to be true. But it isn't true: a startup is a business, and sooner or later it needs to make money. Founders who realise this and have a plan to monetise from the start are far more likely to succeed.

2) Underestimating the importance of cashflow I learned this lesson the hard way when my first business was snuffed out almost instantly by a lack of cash. The rate at which the cash ran out was much faster than I expected, but the speed at which the rest of the business fell apart as a result of running out of cash was alarming. Thankfully I was only 24 and was able to recover fairly quickly, but I see the mistake being repeated over and over again with new startups.

Why does this happen? Similarly to the previous point, it's largely avoidance psychology: the prospect of running out of cash triggers the primal fear of failure so people will go to surprising lengths to avoid facing it. Naivety is also often a major factor: spending too much on the less important things such as big plush offices and equipment, hiring too many people too quickly, failing to hustle and negotiate better deals on costs, and other such missteps. Lack of information is a common problem too, as critical cash drains like tax, insurance and travel costs are often either underestimated or simply not accounted for in the early forecasts.

All of which is avoidable with some proper planning and research before you dive in. Founders who are willing to spend the time doing that (often tedious) groundwork are giving themselves a much better chance of success.

3) Focusing on the sexy stuff Being successful in business is hard work, everybody knows that. But what separates many successful founders from the rest is their ability and willingness to do the tedious, repetitive work that drives a business forward day in and day out. In other words, pushing through the grind instead of focusing entirely on the sexy and glamorous work.

The problem is that it's very easy to be extremely busy as a founder, as there are so many things to do at any given point. And as human beings we naturally gravitate towards the things we enjoy first, leaving the boring slog work until later. As a result, many founders who are guilty of ignoring the truly hard work probably don't even realise it, only to scratch their heads when it all goes wrong.

By grind work I am not specifically referring to admin - which can easily be automated or outsourced in a number of low cost ways today - but rather activities such as analysing your customer behaviours every day, trawling through social channels daily to build up momentum, writing regular blog posts that nobody seems to read, speaking to tax advisors about R&D credits, filling out patent and trademark forms, building and testing marketing and sales automations, and all the other energy-sucking bits of unsexy work that go into building a business's early momentum. These are all things that a founder must be willing to do themselves at first, knowing that the reward is much further down the line. Many founders make the mistake of believing that they are above this type of work from day one, and they are nearly always wrong.

4) Giving up too easily This is a big one, but I see it derail people so often (myself included, in my earlier ventures). At some point, the general struggles of starting a business up from scratch will become overwhelming, and some major problem will push the founder to the edge of wanting to quit. I refer to this as the wall, in reference to the wall that marathon runners hit when their body starts screaming at them to give up.

This is often a critical milestone in a business's development. Just as in a marathon, a person's ability to push through this wall is a huge determining factor in their likelihood of finishing the race, and business is no different. But really, this is the central essence of running any kind of business. The ability and fortitude to overcome difficult challenges is one of the foundational characteristics of any successful founder, and the struggle should be the fuel that drives them. Founders who expect, embrace and face challenges head-on will be amongst those left standing after the 90% have faded away.

Conclusion The 90% statistic is accurate, but it is also an oversimplification of the landscape. Succeeding at business is not a game of chance, it is a battle of will where the most realistic, durable and pragmatic individuals thrive. Founders who have, or are willing to build, these characteristics will have the best chance of being in the 10%. Those who don't or won't, will be found out quickly enough.

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Article Source: https://EzineArticles.com/expert/Marc_Crouch/2301747

6 Awesome Tips for Starting a Business Overseas

Let's do this step-by-step. It's a challenging road to success. I ran an online business in Asia focusing on providing a platform for local and foreign businesses to integrate and automate paid advertisements on social media. The platform provided unique written, designed and tested campaigns, which could be tweaked accordingly. It was a very challenging task to meet all the demands of (potential) customers, but it was well worth it.

Before packing your bags, start reading these 6 awesome tips for starting a business overseas:

1. Local Culture

The local culture and habits are extremely important for any entrepreneur who's looking to start a business in another country. It is essential to know the ins- and outs of the local environment and how to get around. As hard as it might be, try to find a local investor or a business advisor who can inform and explain key factors of doing business in a specific area. Depending on your business and target market, get to know local consumer behavior. It's key for your potential business to have local partners who are trustworthy; this key point can make or break your business.

Local business events are a great way to meet new people in the area. In case you are looking to build a network before flying out, which is a smart thing to do, use your current network to see if you can connect to someone doing business in that area. Another possibility would be to join expat communities and ask questions there. Join Facebook groups! They are surprisingly effective.

2. Language

Studying a new language is hard and very time-consuming. It may even present a bigger barrier for you than running an actual business. However, learning the local language will prove to be a huge advantage when doing business with local people. Especially in Asian countries, people will show you more respect and trust when you speak the language. Besides the fact that communication will be easier, it's easier to meet new people and you'll most likely get better deals.

3. Way of Life

Integrate with the local community and neighbors through events and other get-togethers. This is a great way to meet new people, potential clients, potential business partners and besides that, a great way to learn more about the country and its culture. It's an awesome experience to see, understand and feel how the local people live their life. Learn about their values and vision in life. Study the local market and local economy and how that knowledge can profit your business.

4. Competition

It is critical for entrepreneurs, regardless of country or business industry, to fully understand the competition. However, entrepreneurs should not only focus on the current competition model. Have a look at what happened in the past, try to find companies in your industry or somewhat related who have failed to succeed. Examine their conditions and learn from the mistakes those companies made. After all, learning from mistakes is a highly valuable asset. Also, find companies that have succeeded in their market and compare them to the failed companies. Figure out the key differences and implement this in your own business plan.

5. Network

Networking is one of the most important key aspects of running a successful business. As you make the move to another country, the network you build in your home-country will become less valuable abroad. Therefore building an international network is increasingly important. Meeting the right people at the right time can make a huge difference in your business' growth. As mentioned earlier, try to connect with expats or already established communities in the local area. Many Asian countries have specific groups that organize events for members for a small monthly fee. Or join Facebook groups that are free and offer a community atmosphere.

When I moved to Asia to build my own startup, I tried to connect to many businesses at a very early stage by emailing or calling them. It was extremely beneficial to meet businesses and other entrepreneurs and resulted in a lot of new connections and trusted contacts. It turned out to be a valuable for both sides, short- and long-term.

6. Health Insurance

An obvious, but often overlooked, factor when moving to a different country is health insurance. Many expats don't necessarily recognize the importance of good international health insurance coverage. I highly recommend finding a health insurance plan that fits your personal needs and select the most suitable plan for you. For example, if you require routine visits to a therapist or chiropractor, finding a suitable doctor in another country can be difficult. Check with your insurance provider whether they keep a list or communities of the best doctors in your new country. This will take the stress out of searching for a doctor as you're simultaneously settling in.

Starting my own business abroad was single-handedly one of the most exciting things I've ever done in my life, but it was not an easy thing to do by any means. Don't just randomly choose an industry or country, but take your time, be patient and come prepared. Of course, keep in mind some of my tips, I'm positive it will contribute to your success and give you an experience of a lifetime, something you will never forget!

About Marcel de Jong - An entrepreneur living in Asia for the past 12 years and specialized in individual & business insurances. His passion is traveling and to deliver relevant information and easy-to- use online tools. Since 2013 he's blogging for Now Health. Check out more information at https://www.now-health.com/en/

Article Source: https://EzineArticles.com/expert/Marcel_De_Jong/2416413

Why Is There a Need for Brands to Tech-Innovate?

Technology is affecting consumers' lives by changing the way they live and interact with brands. A recent study by consulting firm Kantar TNS, found that that 47 percent of India's consumers with access to basic Internet feel constantly followed by online advertising, about 13 percent more than the global average. But what is more interesting is the fact that 21 percent of those responded that they ignore social posts or content from brands. This brings us to the question: Can publishers and business owners still find success to win customers?

Problem is in the roots

One of the biggest hurdles that still hinders the brand-consumer conversation is the lack of personalization. The traditional methods of web marketing included mainly Search Engine Optimization and Search Engine Marketing (SEO and SEM) and paid search. In those days, 'more visibility' of the product was the primary motive of online marketing. The directive was pretty straightforward - find a product and promote it digitally. It took a while for brand managers to realize that mere visibility is not effective - the results were more often linked with how the message engaged the consumer.

That is when the marketers understood the value of 'Unified Consumer View' and 'Customer Journey Mapping'. Thus, with the advent of data analytics the shift of focus from 'push marketing' to 'pull marketing' began. These changes also gave rise to marketing technology or MarTech, slowly crediting it to become a critical part of the brand strategy. The question is: Is enough being done? Perhaps, not!

Marketers today are looking at something more than just marketing messaging gateway. Brands today are capable to track their consumer behaviour through their digital footprint by means of analytics and MarTech tools to help customize product offerings depending upon the consumers' individual interest. A paradigm shift in this direction has already begun - from finding a product to promote to eventually becoming marketing relevant products basis consumer needs.

The workflow of visual-based marketing has made way for marketing automation tools to help brand managers to engage consumers with the right message on the right platform. This often means that companies need to tech-innovate (innovate using technology) to craft engaging conversation points across channels such as web mail, SMS and social media, etc. This habit of innovation using technology has to be based on the understanding of the customer's preference. For instance, if a consumer prefers email as source of information from brands, data analytics will process and assimilate the data and automate personalized email messages can be directed to the consumer.

The most important aspect of marketing automation is that it enables brands to strategize and manage their Marketing campaigns well in advance. Therefore, in case of festive season, which is peak time for brands in terms of sales, marketing automation helps brands to manage their messaging and strategize promotions well in advance, which leaves no space for chaos during heavy traffic on their websites.

The benefit that a consumer gets is access to all the information of various products and services on relevant platforms and engage real-time with brands while browsing or shopping online.

The adoption rate of marketing technology is extremely high with brands to gauge better customer data integration, and mapping customer experiences to a company's vision of omni-channel customer service.

Therefore, the data analytics embedded at the core of MarTech helps to improve customer service. Currently, ecommerce, retail and BFSI have been taking the lead in this. But opportunities are galore for other industries too. There are innumerable things that a brand can do with MarTech more efficiently and get into the next level of customer integration.

Digital media and technology in marketing has become omnipresent and there is no longer complete divide in perception amongst "digital marketing activities" and is simply considered as part of marketing. This thinking is partially driven by changes in consumer media consumption where they continue to consume content in different formats such as mobile, web, social media, etc. basis their preferences without consciously thinking about the channels. Real-time engagement in digital platform has emerged to be the most significant tool to drive improved outcome for brands to engage directly with consumers in a more coordinated and efficient approach.

Often, building in-house capabilities to nurture and implement MarTech best practices poses a challenge. In such circumstances, it is best to associate with a marketing technology consultancy that not only understands the ecosystem, but also has the wherewithal to execute plans across channels, which is imperative.

For more visit: http://www.netcore.in

Article Source: https://EzineArticles.com/expert/Winay_Bari/2352790