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Introduction
A startup is a newly established business seeking to grow into a large enterprise or conglomerate. In this case, startups may either fail or succeed depending on the circumstances within which they operate. Some factors that make startup businesses fail include lack of good mentorship skills, mixing friendships with companies, lacking focus, lack of business knowledge such as marketing, operations, and finance, and being advised by the wrong people. Other factors include too much pride in the business, lack of passion, commitment, motivation, and unwillingness to listen to advice. In addition, the new firm may collapse or fail because of raising too much finance within a short time and expanding too fast. However, there are also chances that a new business (startup) will succeed because of good governance or business practices where the owner(s) have commitment and passion. Although some people may think that startups have a high probability of succeeding, there are many instances where new businesses fail because of poor business practices.
Themes to Pull Out on the Road to Failure
Many issues lead many entrepreneurs to get on the road to failure. In a business environment, approximately two-thirds of startups never manage to succeed (Eisenmann). Therefore, most startups happen to fail because of poor business practices, such as the lack of commitment and passion for the business (Startup Graveyard). According to startup case studies, most new businesses fail because of shaky business models. In addition, some other startups fail because of pivoting unsuccessfully. Although pivoting ensures that a new business that has a probability of failing can breathe a new life, it also means that the enterprise has to start afresh and lose the investments used in the business when it got started (Cantamessa et al. 1). For example, Fab (a social networking site) failed because of the risks associated with pivoting (Schnapf). Therefore, there is a need for individuals to be cautious when their startups are looking for a new perspective by pivoting.
Startups also fail because of being too ambitious and hoping to grow extremely fast. There is nothing wrong with being ambitious from a business perspective. However, there is a problem with being overly ambitious, particularly when the business is still new as a startup. In this scenario, the business chews more than it can swallow (Chan). Too much expansion within a short period of time is risky and leads to many businesses collapsing. When a business expands abnormally quickly, it also raises many finances within a short duration, which is a recipe for failure. A business has to take time to grow and expand to be stable and withstand any turbulence that may threaten it. Many small companies file for bankruptcy because of expanding too fast into other territories, even before demonstrating success in the original marketplace.
Themes to Pull Out on the Road to Success
Although a startup has a higher probability of failing, there are also chances for success for such a new business. Failure is defined as the greatest teacher, and most businesses have chances of bouncing back to stardom because of excellent business practices (Cantamessa et al. 11). A good entrepreneur is used to failing so that they may have better initiatives to succeed shortly. Failing is inevitable in a business environment but can eventually lead to success if policies and practices are revised and enhanced. If a startup is experiencing some turbulent times, it is necessary to embrace the situation and see what comes out of it. Therefore, the problems in a new business bring lessons to learn and offer solutions leading to success. A startup has to be wary of pivoting to succeed.
Pivoting is not a bad business idea but has the potential to cripple a new business if improperly applied. A startup must constantly evaluate its available data to avoid failure and succeed (Startup Graveyard). Pivoting ensures that a startup has a new lease of life that makes it have momentum and avoids cases of being stagnant. Some of the new business’s success elements include testing new services and products, incorporating new business strategies, and measuring the market. All the mentioned parameters provide the startup with the required business knowledge to know whether pivoting will be necessary or not (Chan). Pivoting should be treated with caution because it may lead to the collapse of the business. Most successful businesses ensure that they take preventive measures in pivoting. One of the benefits of this step is that it makes the firm diversify and have new products appealing to customers. As a result, such a startup will have the ability to generate more sales and profitability.
Integrating New Knowledge into My Business Idea
Business Overview
My startup idea is to offer help in constructing a well-defined resume and guide our clients to their desired jobs and positions. For this business to succeed, we need to be passionate, committed, and careful about potential issues (Chan). Assisting people in getting their dream jobs is a unique initiative, and product development should be at the heart of the business model. The target audience includes individuals seeking entry-level positions and current and recent college graduates who need excellent products and services that suit today’s competitive job market. In this case, artificial intelligence (AI) capabilities will enable the students and college graduates to have various assistance mechanisms in the cover letter and resume writing (Cantamessa et al. 3).
Potential Issue to be Addressed
A potential issue to be solved is the rising cases of unemployment and lack of knowledge for career development. Current and recent college graduates find it challenging to get a job because contemporary employers do not recognize their value (Startup Graveyard). Therefore, having a startup that addresses the graduates’ concerns is a step in the right direction. The job market is quite competitive and requires a robust approach to searching for employment opportunities. Therefore, having consultancy services for cover letters and resume writing is essential and will help cure the problem.
What to Integrate into My Business
The information I learned through this research will allow me to make my business more successful. First of all, I now recognize the necessity of keeping the startup innovating and having a robust product development mechanism in place. Persistence and patience will also give my business energy to succeed. I will test the new services and options that I would like to implement, always consider the risk of failing, analyze market trends, and seek advice from specialists. Finally, I now find it vital to think through several backup plans to use in case any of the areas of my startup fail.
In order to avoid the latter, I will ask an experienced entrepreneur to critically evaluate what to do and what not to do. If I ever decide to pivot my business, I will implement this process with extra caution, find substantial investments, make sure that the timing is beneficial, and check whether pivoting will lead to customer satisfaction. What is more, nowadays, “over 95% of the college-age market uses the Internet and over 91% of that group completes online purchases,” which is beneficial for my business (Lester et al. 123). In order not to fail unexpectedly due to the decrease in the aforementioned numbers, I will need to monitor the statistics and think of alternative options.
Conclusion
To draw a conclusion, it is possible to say that starting one’s own business is a risky and rarely successful process. As mentioned above, a new startup has a higher probability of failure, which is a worrying trend. Although the lack of success is difficult to comprehend, it is known as the best teacher that allows businesspersons to reconsider their ideas and perceptions and focus on other concepts that are more likely to be efficient. Consequently, notwithstanding the chances of nonsuccess, the bottom line is to try, get back, and forge ahead to eventually win.
Adequate preparation for a startup is relevant to ensure future success. Most mistakes that lead to failure could have been rectified because they were quite evident and discussed by professionals. However, some startup owners consider irrelevant recommendations and options instead of searching for solutions to the problems that can lead to failure. It is crucial to have adequate preparation and patience in a new business, which will lead to eventual success. Some of the issues that lead to startup failure include pivoting, growing too fast, and being overly ambitious. On the other hand, a startup could succeed because of various reasons such as persistence, patience, commitment, passion, and great leadership.
Works Cited
Cantamessa, Marco, et al. “Startups’ Road to Failure.” Sustainability, vol. 10, no. 7, 2018, pp. 1-19.
Chan, Jonathan. “What These 4 Startup Case Studies Can Teach You About Failure.” Foundr Magazine, 2020.
Eisenmann, Tom. “Why Start-ups Fail.” Harvard Business Review, 2021.
Lester, Deborah H., et al. “Internet Shopping and Buying Behavior of College Students.” Services Marketing Quarterly, vol. 27, no. 2, 2008, pp. 123-138.
Schnapf, Michael. “Pivots Don’t Always Succeed. Here’s How You Can Make Sure Yours Does.” Ceoworld Magazine, 2019.
Startup Graveyard. “Welcome to Startup Graveyard.” 2022.
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