20 REASONS WHY STARTUP FAILS- (1) NO MARKET NEED
It is disheartening the rate at which startups or let me say businesses fail especially in Africa.The below infograph shows 1 of 3 launched products fail despite research and planning, 1 out of 4 projects that enter development make it to the market and 46% of all resources allocated to new products U.S firms is spent on failed products.
So, the question is why these massive failure? Despite all the arrangement made, critical research and planning, despite massive market of any product you can imagine, despite huge resources to have a successful startup in the US even in Africa, why these massive failure?
The StackPreneur team are disturbed and always thinking why startups fail and we have come up with a plan to give you indepth and critical researched works to enlighten you of the reasons why startups fail.
NO 1, NO MARKET NEED
You mean all these products that failed actually failed because of NO MARKET NEED? I know you will ask. Then I will tell you YES!.
Africa which is our focus have a consideration population and market that is capable of making a particular product succeed but the problem is the product or services we provide does not have value that is, there is no market to subscribe to it.
These are the reasons why startups don’t have a market or don’t meet market need:
1. PRODUCT TO SHOW OFF
Many enterpreneurs dive into producing things especially in the tech scene products of no value, of no market need because they want to show their competitors that they also can also come up with ideas and implement them.
Company A is into Mobile Development and they have produced a 1 Billion Dollars Successful app. Company B which is a consultancy firm and they have the resources too to build an app, just dive into app development because they have the resources but don’t have the market.
So, because of creating competition or showing prowess or big boy, entrepreneurs build products of no market values.
2. CUSTOMERS NEED WITHIN THE MARKET
I have been following Josiah Humphrey, CO-CEO of APPSTER and this is one of his quote
The reason why the Newton (a series of PDAs released by Apple) failed but the iPhone succeeded is that customer needs within the market (the need for internet, for portable music, etc.) evolved to the point where customers found that adopting the iPhone was easy and enjoyable whereas using PDAs felt cumbersome and limited.
Enterpreneurs in Africa and beyond create products outside the market they are located. The world has gone beyond the days of PDAs for example, there is internet availability everywhere. Why will someone create a product backward to 19th centuries.
I will say, the only feasible market that is available and that can target massive market is the internet, but some enterpreneurs are not aware or will I say they underestimate of the fact.
3. IT IS THE IDEA THAT MATTERS MENTALITY
The power engine of a successful startup is not even the idea, not even the team and not even the financial capacity but the market.
When you have a Billion Dollars idea and there is no market to subscribe to your idea, then your idea is totally rubbish and will fail permanently
Your startup needs growth and for it to grow, that is the work and duty of the consumers that are interested and ready to pay for your products and will tell another person.
So, stop bragging about your idea, focus on the market.
So many useless ideas that have market succeed more and better and great ideas that have no market have no place to succeed.
Hack the market and the market will hack your startup growth.