6 warning signs that your startup might fail soon

Startups fail for many reasons, such as having a non-commited team of founders, or poor market demand. The question is, would you be able to recognize the signs that your startup is on rocks, before it’s too late?

Having experienced both sides of the founder/investor equation, I have noticed 6 typical warning signs that alone, or together, are material for deep concern. In this VUCA world (Volatile, Uncertain, Complex and Ambiguous), the more clarity you can get about any subject, the higher your chances of succeeding will be. Most businesses don’t fail suddenly, but rather as the result of a problem that’s existed from the beginning. These issues are usually not detectable or not dealt with until it is too late, so read to assess your startup’s potential status.

1. Clients, representatives and the target market are not talking about you

Why do most startups focus on the size of their client base, instead of what their clients are saying as a multiplier factor for attracting more quality-oriented clients? What are your current clients saying about your company? What are they saying about the product, the service or the startup team on the social media channels, and in the rating and review sections of e-commerce and online reputation websites?

If you have representatives or resellers, what are they saying about your products and about your company? Are they engaging with your social media presence? The more people that are talking about your company, the better – starting with your own team members. If only a few people are talking about or interacting with your startup online, that is a bad signal as many of your leads in today’s digitally transformed world will come from those interactions.

2. You can’t define what your customers really want

If your startup is not getting into your customer’ minds and learning what is more valuable (and not valuable) for them in your offer, then you are on the pathway to destruction. Clients are more important than investors, as without clients your business does not exist. It is their recurring purchases that will be the life line of your operation.

What are their problems, goals and worries? Can you list them? Once you create a persona (or profile) of who is your typical client, then you can brand your product more impressively to them. Many startups are too busy managing invested funds or creating the next “super product that the whole world will irresistibly buy” and are just disconnected with reality and their customers – current and prospects alike.

Read more: www.eu-startups.com