90% of start-ups fail. The reasons for this are complex and it is impossible to blame one factor alone. An extensive market research survey was completed by CBINSIGHTS identifying the real reasons start-ups bomb by interviewing entrepreneurs from 137 failed businesses. Their insights into the importance of product development are enlightening. In this post we will explore why all start-ups, hungry for success, should invest in product development.
Humility to Take Advice
85% of entrepreneurs admit that their own arrogance actually played a role in their demise. Without being willing to accept help, they made poor decisions, especially where it concerned the product. The survey revealed that 47% of products manufactured had zero need within the market and 13% were completely mistimed.
These overconfident entrepreneurs were driven by a clear vision which is admirable but left them vulnerable. When you invest in professional guidance from a product development company, you will also get quality advice to support you through the process, ensuring that these short-sighted mistakes won’t happen to you.
A Meticulous Approach
As a start-up business you have very little space to make mistakes. Without huge income streams, you can’t solve problems by throwing money at them. 17% of the entrepreneurs surveyed believed that a basic reason they failed was that their product was just not good enough.
Spending money of marketing seems like a sensible strategy but no matter how much investment you put into an advertising campaign; if the product itself doesn’t solve your customer’s problem effectively, the business won’t last long. The customer experience should be absolutely central to all product decisions that you make. Rushing this part of the process leads to failure.
This is why taking the time to do things properly and invest in support services like product development is so valuable. It eliminates the risk of building your business on a product that is below par. The companies that offer this provision have extensive experience in this field and can guide you through as you develop and subsequently build a product that provides high quality solutions and therefore sell!
Investment for Growth
When a product begins to make money and a start-up can see the potential for growth, continuing to invest into product development is essential for growth to come into fruition. Think about the iPhone, the product has evolved at an incredible rate and each time, new innovations have been and the value increased. Apple accepts that no product is perfect; with new technology and new thinking, new innovation is born.
As a Start Up with aspirations of success, you need to think about your company the same way that Apple do theirs, I doesn’t matter how small you are, think big! Stay focused on your mission and what you want your product to achieve, creativity will then flow!
When selecting a product development company to invest in, look for one who offers continuous support after your product has made it to market. This is important so you can iron out any issues, before you feel ready to start the process again with a new innovation.
Create Balance
Having a start-up is not too dissimilar to having a baby. It consumes your life, eats your money and keeps you awake at night. No-one goes into business expecting it to be easy but some don’t anticipate just how hard it is. 8% of those questioned admitted that a major cause of their failure was burn out. A further 9% blamed a loss of passion and then 13% a lack of focus.
The sad fact is that these entrepreneurs could have potentially avoided all of these mind-set problems by taking care of their own health and well-being better. There are many different strategies for this but one very effective way is to outsource parts of your business that are potentially overwhelming; those that require high levels of specific knowledge and understanding that you don’t have within yourself. Product development is a perfect example of this.
Seek Intelligent Engineering
Here at Nexus IE we’re passionate about helping entrepreneurs with grand ideas see their dreams come true and support them to reach their goals. We provide product design solutions for start-ups through the design and build process, helping you get it to the consumer. We also offer continuous support afterwards to maximise your investment. For more information of how we can help you, contact us at info@nexus-ie.co.uk or call us on 01353 653 855.
