We all know a couple of businesses that started up but failed to stand the test of time. Some of those could be the small businesses in our neighborhood, others are big businesses that we saw on TV. The term failed startups is usually reserved for businesses that began operations with the aim of taking over on a large scale in their niche but failed to do so. ( This article uses the term for both big and small businesses). The owners of these businesses did not just choose to fold up and go home,a number of factors forced them to shut down operations. These factors affect both businesses that started small and the ones that went all out at the start. As an aspiring entrepreneur or would be business owner,how can you avoid the heartache of starting up and closing down before you reach your full potential? The answer is to identify the common mistakes associated with failed startups. Once those mistakes have been identified, you then take deliberate steps to avoid going that route.

First off, what do we mean by failed startups? To what does the term ' failed startup ' refer?

Failed startups.

A startup is any business that is new,one that has just begun operations/functions. The term startup is relative but is usually used for businesses that are not older than five years. Failed startups refers to any business that did not last for up to five years before shutting down its operations. Five years is a short time to be in business and actually take over. A human of that age is still a child and is yet to get to his/her peak or attain full potential. In the same light,a business that lasted five years or less is considered a failure -a failed startup.

The failures of these businesses are hardly ever deliberate, sometimes,the owners do not even see it coming. Below are common mistakes that result in failed startups.

Common mistakes of failed startups.

1. Lack of periodic assessment: as a business owner, it is important that you assess your business at regular intervals. Take a look at your books and see how far you have come and how well the journey is going. Do not assume that all is well with your business because you have customers and profit coming in. Sustaining a business involves much more than having profits and customers. Elements like customer loyalty, employee engagement or lack of, employee happiness etc play a role in keeping your business open.

2. Rigidity: Many failed startups went down because the owner(s) refused to adjust to their realities. They rather stick to the plan set out in their business plan and the ideas they already had in mind. While that is not wrong, you need to know where and when to adjust and face contemporary realities. Those adjustments would not be in your book or part of your plan in any way,but they would go a long way to keep you in business

3. Avoidance of criticism: Criticism is one hard pill to swallow, but it is the mirror through which we see what we otherwise would not see or chose to ignore

4. Failure to reinvest profits: This is a factor especially for small businesses. At the early stages of a business,there is always a need to reinvest profit. This is because you are new to the business and your clients/customers may be few and are just managing to trickle in. Reinvesting your profit ensures that you never go out of stock and/or you are always able to meet up with the demands of a client even before they pay for your services. It is wise to reinvest whatever profit you make or at least most of it for a while,until your business is able to stand on its feet. https://smallbusiness.chron.com/importance-reinvesting-business-24402.html

5. Weak/ineffective leadership; Ineffective leadership skills can ruin any business, whether it is a startup or not. The way an employer deals with his employees is everything; being too lenient would result in a sloppy work attitude and being too difficult would cause employee disengagement. When it comes to leadership,balance is key. See how you can effectively manage your employees. https://smartsmssolutions.com/blog/121-sms-marketing/business-communication/1590-how-to-manage-people

6. Careless risk taking: running a business involves risk and as the saying goes; "not taking a risk is a risk in itself". With this in mind,many startups have taken careless and uncalculated risks that brought them to nothing. Much as risk taking is necessary in business, minimize such and where possible,get experts to make your chances known to you before deciding to embark on risky business adventures or not.

7. Ineffective/lack of communication: It is really a pity that many business owners downplay the importance of communication in their businesses. They take communication with employees,clients and partners for granted. Where there are deficits in communication,goals and objectives can not be reached. Plans and strategies would not be understood by all involved and this would be evident in the actions and inactions of all parties involved which would ultimately lead to a chain of failures that would inevitably run down a business. Fortunately, communication is easier these days, a simple text or two would go a long way in making sure your thoughts and visions are clearly conveyed. SmartSMSSolutions bulk sms service is readily available especially for you as a business owner. Find some other great ideas on ways to communicate in your business. https://smartsmssolutions.com/blog/121-sms-marketing/business-communication/1628-the-best-communication-channels-to-use-in-your-business

One of the wisest things we can do as humans is to learn from the mistakes of others. Knowledge is power, they say. The true power however, lies in the application of knowledge. Having known the mistakes that are common with failed startups,the onus lies on you to make a conscious effort to avoid those.

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