3 Little-Known Ways Startups Fail

 #1: The customer is forgotten.

You have probably been in a business meeting where “What is easier/cheaper/faster to implement?” is asked rather than “What does the customer want?” Startups often fail because they make product and business decisions based on politics or resource limitations rather than the customer’s needs and desires.

Try this instead.

A successful startup is not its product—it is its customers.

Kate Kendall, founder of freelance recruitment web site CloudPeeps, made an effort to build a community before launching her business, achieving cost savings and success as a result.

Take the time to identify who your customer is and get to know them. Use this knowledge to inform your business decisions. For startups, social media, online polls and beta testing groups are simple but effective tools for identifying and learning from your customers.

“When I started CloudPeeps we invested zero dollars in technical development at first. A lot of people tend to be more product focused in the early days. But before you build out you need to chat to your customers or potential customers to see if they will buy or be interested in what you are going to do.” — Kate Kendall, CloudPeeps

Once you know your customer, keep them front and centre within your organisation. Assign someone to act as a Customer Advocate: the permanent voice of the consumer in your company. By representing the user’s interests in business meetings and beyond, a Customer Advocate can help you maintain critical perspective.

#2: You are underbanked.

Whether software licensing, online advertising or business cards, even the smallest startups need to make business purchases. Unfortunately, traditional banks make it difficult and time consuming for startups to obtain corporate credit cards.

Many startups do not qualify for a corporate credit card. Even if approved, it can take weeks or months to receive a physical card in the mail. In the startup world, speed matters!

Try this instead.

EntroPay solves these problems by giving startups instant access to MasterCard prepaid virtual cards. Sign up to EntroPay and create unlimited virtual prepaid cards in euros, dollars or pounds.

Distribute virtual card numbers amongst your team to make payments quickly and securely. Startups shouldn’t be bound by borders, so all you need to send a virtual card to remote workers is an email address.

Will you be sharing startup costs with your co-founders? Rather than making online payments with a handful of personal credit cards, you can contribute and disperse funds from a central EntroPay account.

We are putting credit card control back in the hands of startups (and it feels good). 

#3: Motivation is your only fuel.

You’ve got this great idea, you want to run with it and you’ll stop at nothing! Don’t quit your day job just yet.

It is not necessarily lesser-known, but too often forgotten: Businesses start from passion but they succeed based on much more.

Try this instead.

If your team lacks formal business education or experience there are plenty of ways to gain the knowledge you need to succeed. Enrolling in an online business master class is a great place to start. More importantly, never stop learning. Subscribe to business podcasts, newsletters and blogs to stay sharp.

Are you ready to start enjoying the full benefits of EntroPay?

Subscribe to updates