The goal for just about any entrepreneur is to launch a startup that will become as powerful as a company like Facebook or Airbnb. But sadly, most startups will crash and burn before reaching this level of success—especially in the technology sector where the failure rate is estimated to be hovering around 90 percent.
Why do most startups fail? Rampant spending has a lot to do with it as it’s easy to overestimate a company’s potential market value and stretch a budget too thin in the early stages of development. But a new report from CB Insight, which highlights the top 20 reasons why most startups fail, points to several other contributing factors besides a lack of money. In fact, a lack of spend is actually second on the list, as it was reported to be the cause of failure in only 29 percent of cases.
As it turns out, the number one reason why the majority of startups go out of business is failure to target a market need. Oftentimes, a startup has everything it needs to thrive like a team of great advisors and industry expertise, but there is often a disconnect between a startup’s core competencies and the needs of its potential customer base.
The CB Insight report points to the example of one failed startup that’s product streamlined efficiencies for doctor’s offices, yet failed to convey how the solution could drive greater profits.
“I realized, essentially, that we had no customers because no one was really interested in the model we were pitching,” explained a company representative in the report. “Doctors want more patients, not an efficient office.”
The startup should have spelled out how increasing office efficiencies could lead to shorter wait times, happier patients and an overall better experience. If the company had done this, it may have forged the market need that is critical for long term growth. Instead, the business burned itself out early.
If you are launching a business, it’s important that you identify your company’s core market need. And once you identify your audience’s need, Web content will be the catalyst that will be critical for transforming your operation into a must-have solution for your customers. Blog posts, social content and Web copy are all integral for showing buyers exactly what differentiates your business. Your market need will be built by attacking customer pain points, and showing exactly how your products and services help address certain needs.
Are you struggling to identify your business’s market need? Here at Content Boost, it’s our job to help you reach your intended audiences through highly targeted marketing strategies. Click here to learn how we can help take your business to the next level.
Edited by
Brooke Neuman
