Why startups fail – Lack of Knowledge of Marketing & Branding

 What is a start-up?

With the ongoing technological advancement and the boon in the internet industry, the marketing agency is playing a major role in the startups. A start-up is a business started by one or a few entrepreneurs to bring a distinctive product in the  market. Bringing any startup is not an easy task, it is filled up with various challenges  from pitching your idea to the investors to convincing them to invest in your idea, choosing the best branding and marketing agency for the promotion and etc.
Startups need constant approach, work, and planning to build up an efficient marketing strategy. Many times the startup idea seems to be good but poor planning brings it down. Most of the startup fails due to flaws in the plan, no revenue, no investors or getting no profit out of it.
While many fail to set their foot in the market because of choosing the wrong marketing and branding agency for their product advertisement, some just boost up in a short span of time. Some of the examples of successful startups are Microsoft, Zomato, Paytm, Mc. Donalds and many more. One such successful startup brand link is down below:
https://lava-brands.com/connect

 

Now the Question comes Why do startups fail?

 

Here are some reasons for failing a startup Idea Developing a plan to start a business always feels so refreshing and motivating but not every business takes great growth. While entrepreneurs give their all to make their business work but sometimes it may not work because of
• Running out of money:
Many times startups try to build up their reach by trying new things. They often forget to look after the cash and investors that are needed to run their business smoothly. A constant check on the budget and consistent approach to investors and funding parties is necessary to stop the startup from failing.

• Poor coordination among the founders A startup business won't be able to survive the pressure of the market if not having coordination among its people. Most of the time, the founders often disagree with the ideas and plans of each other and work without consultation. This leads to a lot of confusion, poor strategies, and generates multiple channels for a
command which eventually leads to the downfall of the startup. Understanding and trust between the members of the startups are the prime factors that help to grow any startup idea.

• Poorly devised marketing and branding strategies A brand identity is what makes or breaks the business. Your startup will become a brand when you advertise properly using the right marketing and branding agency. As your brand is what people know you from so proper planning is needed to put forward a perfect branding strategy. When the product is new, it needs constant appearance among the audience so as to develop an image among their mind, every startup needs a branding agency. If the marketing strategy developed by the marketing agency is poor and not well defined, the startup may fail to impress the audience.
• Poor approach to the investors Mostly entrepreneurs proceed towards investors without proper planning, presentation, market research, and clear objectives. The investor thinks only about the profit he will get by investing in your business and if the business plan is not appealing, he will not entertain your startup plan. Your business plan should not only about
what are you going to do, it should also be clear about future profits and what benefits the investors and funding parties would be getting out of it. Proper planning made from the very first step of idea generation can save your startup from failing down.
• Ignoring Customer needs Sometimes marketing agencies and entrepreneurs get so busy in strategizing about how to raise maximum profit that they often forget to look after the customer’s need. They forget to solve the queries of the customers and keeps on delivering the same flawed product. A well professional team should be present to look after the
existing customer's needs and wants and how to generate new customers from them. This will prevent confusion and will help in the smooth running of the startup.
A happy customer can bring more potential customers to your doorstep. So it is very important to cater to their needs and wants, listen to their feedback, solve their queries, and provide them with offers so that the audience generates brand loyalty towards your startup.