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Why Most Startups fail? 8 Common Reasons

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A startup is a company which must grow faster and and should have potential to disrupt the market. To reach this level, there must be a checklist of things that should be in place in order to achieve success. However, almost 90% of startups fail. In this article, we explore various reasons that lead to failure of most startups;

  • Vague Idea with vague business Model

The idea is the actual blueprint of any startup. This means that an idea must be pecise , staight forward and has potential to solve a market problem. With a vague idea also comes a vague business model.  Most Startup Entreprenuers fail to build a good business model that could ensure the continuity of their business. Having a good business model, means that a startup should have the capacity to generate revenue and ensue its survivability. Hower, without it, most startups fail to find ways to make money at scale leaving investors hesitant and founders unable to capitalize on any traction gained.

  • Failure to build a good team

Running susccessful statups need an organized, goal diven and well-motivated team in place. Unfortunately, many startups fail to put together the right team, essential for the success of the business. Some techie startups  would have the technical team comprising of; software engineers and programmers but they fail to build a top-notch business team, necessary for the pomotion of the product. Having a diverse team with different skill sets  is very critical to the success of any startup. When  founding team can’t put out product on its own, then they shouldn’t be founding a startup business. It is therefore the role of the founders to  find the right means of  bringing onboard  a better team without incurring more expenses.  Usually, the easiest strategy is to be willing to offer a certain amount of equity to  people with attractive skills set required for the smooth running of the business.

  • Lack of market demand

When a startup idea is vague with no philosophy to serve a market need, it will definitely fail. According to CBI insights findings, over 42% of startups fail after being unable to solve a market problem. Many startup enteprenuers especially those from tech-related businesses spend most of their time in working on the technical aspect of their products while ignoring another important aspect of their business, which is the market. Understanding the market dynamics and trends before launching a startup is very crucial because it gives an indepth insght of the behaviors of the audience and the nature of competitors available. Most startups ignore the needs of the market but instead focus on solving what interests the founders. Entreprenuers solve for the market and not for themselves!

  • Leadership & Management crisis

According to Supper Club, of all the companies that failed from 2011 to 2013, poor management was to blame 50% of the time. Founders of most Startups lack the necessary leadership skills of being a CEO. In fact most of them could have the technical knowledge of the product they’re building but lack the managerial skills to run the company. Founders may have great ideas and limitless ambitions but lack fundamental management ability. Running a successful startup requires a good leader who is acquainted with a diverse range of responsibilities such as planning, organizing, staffing, and directing.

  • Poor Decision making

Running a startup to the successful level needs hardcore decision making capacity, letting you to make the most suitable choices for the success of the business.  Many startups fail to balance between making priority and non-priority decisions, which leaves the company into an entrappment of vulnerability to fail. Many of those bad decisions include; Bad staffing practices, inefficient organizational structure, lack of quality leadership, and ineffective communication. Even the slow decision making process can result in valuable opportunities slipping away. Ideally, decisions should be made promptly near the point of action and only by qualified personnel.

  • Lack of the necessary Capital.

Acquiring capital and knowing how to use it is very important in the running of any startup. The fact is raising capital is one of the most challenging issue to many startups. The fact is raising capital is one of the most challenging issue to many startups. According to CBI insights findings, over 29% startups fail because of failing to raise the necessary capital they need to scale their innovation or product. In  2013, Flud; an online social news reader startup shutdown, after failing to raise an additional funding. Despite multiple approaches and incarnations in pursuit of the ever elusive product market fit and monetization, Flud eventually ran out of money and closed down.

Even those startups that get the capital, mastering how to use it is very critical to their success and continuity.  For example, DAQRI, a Los Angeles-based Augmented Reality startup, found itself floundering after burning through investments in excess of $250M and acquiring 4 other entities.

  • Being out competed

Running  a startup is like running any business because competitors will always be there. Despite the platitudes that startups shouldn’t pay attention to the competition, the reality is that once an idea gets hot or gets market validation, there may be many entrants in a space. And while obsessing over the competition is not healthy, ignoring them is also a recipe for failure in 19% of startups. Some startups even get it wrong by tampering into an area;  a premier colony with already established competitors. One of the reasons why Daqri failed was because it faced substantial challenges from competing headset makers like Magic Leap and Microsoft, which were backed by more expansive war chests and institutional partnerships. Successful Startups find a totally unique niche and dominate it with their own innovation before other competitors intrude in. A case in point is Elon Musk’s Falcon Space program, some of the things it does is to manufacture reusable rockets for different space programs. This innovation created  its niche without any competitor and it has successfully dominated it.

  • Contradicting goals & ambitions

Some startups fail because founders lack a clear goal that guide their business or innovation. Some founders even fail to grasp the fact that, what they’re doing takes entreprenuership spirit to succeed. Contradicting goals come into play when founders fail to balance the pesonal goals and the actual goals of their own business; something that leads to total failure. A founder of a startup must look at the bigger picture to solve the market needs at all costs, even when it means sacrificing their own personal needs first.

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What Should Startups Focus On?

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Opening the doors to your startup is the most fulfilling thing in an entrepreneur’s life. However, there are certain things that are important to the business that you need to evaluate first. Remember that the early stages of your business growth are intimidating and there are endless things to do.

Thus, you may be wondering whether to start with market search, product development, marketing or costs. All these items require your attention because they are essential for they will set you up for success. Therefore, continue reading this article for more insight on what you should focus on from the onset of your startup.

Target Market

You need to know who your client is from the start for your startup to thrive or survive. The reason is that you are likely to be distracted when starting up. You need to establish your focus segment and establish whether this category is ready to pay enough for products and service you’re offering. Otherwise, you’re wasting time and money in the market if you don’t know the scale of your market, and value it assigns to what you’re offering.

Market Research

Market research is an activity that will help you to find a market for your products and services. It would be best if you established whether there is enough market for your products before placing them in the market. Otherwise, you will supply items that outdated, costly or with several substitutes. Understand your competitors and evaluate if you have a reasonable marketing budget or production capacity to compete with them.

Set a Detailed Budget

Create a detailed budget for your expenditures from the first day of your business. Not having a budget is a recipe for failure because you won’t know how you spent your money. You need to know the cost of marketing your company, inventory, salaries, licences and other administrative expenses. There are many people out there with several suggestions on how you can grow your business; however, all they want is to spend your money by offering unrealistic solutions. For that reason, you need to set and focus on your a budget, create a plan, set boundaries, keep track and stay focused. 

Corporate Culture

You are expected to set the tone of the workplace since you’re the founder and leader of this company. The business. The startup culture entails elements like values, communication, teamwork, productivity, and employees’ relations, among others. The success of your business is dependent on its culture. The reason is that you have very few staff at the start of your business, and its success is pegged on their productivity. However, things will change when your business get established because you’ll have the liberty to punish and dismiss those who don’t perform.

Employees

Employees are the most valuable asset the company has because they are the foundation of your business. They serve as ambassadors and advocates of your company. Thus, it’s important to hire talented individuals with the right skills because you may not have all the skills needed to run your business alone. For instance, you need an HR, accountant, auditors, IT officers, sales officers and marketing officers. These individuals should be experts in their field, passionate and positive about your business.

Value Proposition

The startup should have a statement stating the value or benefits your customers are expected to derive from buying your products or service. You need to answer the question “Why should I choose you?  An entrepreneur can only do that after understanding its customer and its needs. Knowing your target segment is the first element stated above. This element will help you to know how you can use your products and services to maximize the benefits your customers are seeking whenever they transact with you. Therefore, the more differentiating, the better for your startup. 

Marketing Strategy

It’s after many years that the world discovered that ‘Build it, and customers will come” is purely a perception and not a business strategy. Even if your startup is offering a fantastic product, you still have to promote it. You need to tell people about it, build trust and provide your target market with reasons to choose your brand over your rivals. Create an overall business strategy then align sales strategy with a flexible marketing plan to support it.

Entrepreneur’s Brand

It would help if you built your own brand as the founder of this company before launching your business.  Doing this before opening the doors to your business will help people to trust you and as a result, buy from your company. You can do this by creating content about your niche market, and this will present you as an expert in the business world. Thus, people will be already familiar with you by the time you’re launching your startup.

Networking

Endeavour to establish a good relationship with your competitors, suppliers, financiers, and customers. You can attend conferences, seminars and workshops in your industry. This will offer you networking opportunity with experts, investors and other entrepreneurs whom you can exchange ideas with.

Have Realistic Expectations

The business world is full of risks and opportunities. In view of that, you need to have a specific risk tolerance, flexibility and willingness to work extended hours. Don’t be caught up in the ecstasy of building a new business offering game-changing products and services. This will make you lose sight of your ultimate goal and will ruin you. As a result, you need to set these expectations at the onset of the business

Conclusion

Launching your startup is both exciting and risky for you as an entrepreneur. However, the endeavour has a huge potential of succeeding if you focus on important aspects of your business. These key aspects are customers, employees, competitors, marketing, corporate culture, as well as your budget.

These elements will require your attention throughout the startup lifecycle. Thus, you begin focusing on them before launching the company, at the early stages and during the growth phase. Aspects such as networking will always remain relevant to your business no matter the level of growth or size of the company.

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TOP 100 Crowdfunding platforms from 30 countries and why you should choose them

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CROWDFUNDING PLATFORMS FROM DIFFERENT COUNTRIES AROUND THE WORLD

One of the biggest challenges that startups face is getting capital to put their ideas into reality. Some of the most used methods to raise capital include saving money from your day job, getting support from family and friends and at times getting capital from venture capitalists. However, the internet has made it easier to source funding especially with so many people around the world that are willing to invest or even give free money to startups. This is done through crowdfunding platforms. In this article, I am going to take you through the various crowdfunding platforms in the different countries around the world.

ALBANIA

Gogetfunding is available in Albania. To get onto this platform, you’ll have to sign up and then create your fundraising campaign. However, this platform hasn’t recorded a good number of successfully funded projects.

ARGENTINA

This is an Argentine based crowdfunding platform that supports new ideas and projects. You simply have to post your idea on the platform, and interested investors will start contributing capital to make it a reality 

AUSTRALIA

Just like its title, my cause is a crowdfunding platform in Australia that seeks to fund cause-driven ideas in Australia. This platform allows people to raise money for both charity and business.

Everydayhero is also a platform for raising funds for supporting charities, schools and charitable events in Australia

This platform also focuses on giving support to charities and charity events in Australia

This platform provides an opportunity for the people of Australia above 18 years to invest in new exciting startups with a hope of earning as shareholders when the startup succeeds.

This is another platform in Australia that connects startups to people who are willing to support them with unconditional funding

AUSTRIA

On this platform, almost every form of idea is accepted. You can post any idea in any industry, and interested people will contribute for you the capital needed

Its an Austria based crowdfunding platform that gives investors returns of up to 7% annually. The minimum investment is €1000

BARBADOS

This platform funds creative projects in the Caribbean region and mainly Barbados. All you have to do is visit their website, create a project and well-wishers will start funding it

BELARUS

Talaka is a crowdfunding platform in Belarus that helps startups bring their new ideas to life. It also helps you find other entrepreneurs that you can work with and mentors to guide you

This is another crowdfunding platform in Belarus that has been successful in maintaining a couple of startups to bring their ideas to life.

BELGIUM

This a peer to peer investing platform based in Belgium that allows people to invest in European businesses online. It will enable funding for both startups and SMEs that can meet their requirements. The minimum investment needed is €100

This is another crowdfunding platform in Belgium that promises investors up to 12% returns if they invest in the ideas that are posted on this platform

Look, and fin is another real estate crowdfunding investment platform based in Belgium. It also gives up to 12% annual returns to its investors

This is another excellent Belgium based online crowdfunding platform for investing in business loans and real estate projects. Its core role is connecting lenders to borrowers in the most seamless way possible

BOLIVIA

This is a nonprofit crowdfunding platform based in Bolivia to promote education. Since their existence in 2005, they have been able to startup a couple of Libraries in the country through funds raised by well-wishers.

BRAZIL

This is a crowdfunding platform based in Brazil that has been around for about ten years. 

This is a crowdfunding platform for concerts in the music and art industry. They have been around since 2010 and have organized several music concerts in Rio.

This is another Brazilian based crowdfunding platform that has had a success rate of over 70%. It also offers personalized consultancy for all projects

CANADA

This crowdfunding platform uses an all on nothing model. The platform retains 4 % of all the total funds for a successful project

It’s a crowdfunding platform that allows a wide range of ideas. 8% of funds from all successful projects are retained by the platform and 4 % for partially complete projects

This platform also accepts an extensive range of projects, from personal causes to entrepreneurial projects. They keep 5% of the total funds on all successful projects and 2.2% for partially successful projects

CHILE

This crowdfunding platform that helps those fundraising by delivering the right tools to tackle the investment process.

This is a real estate investment platform in Chile that allows investors to invest, starting from 1m2 of an apartment.

This is a Chilean based crowdfunding platform with an average profitability of 13.5% and has financed over 1100 SMEs

CHINA

This platform started back in 2011 and has since raised millions of dollars to fund ideas in China. Their model is a listed project idea is only given the money once they reach the targeted capital in the specified period

It is another Crowdfunding platform in China that also uses an all or nothing business model just like Demo Hour

It’s a funding platform in China that focuses on funding music-related ideas

It’s another crowdfunding platform that has funded over 2000 ideas that have been listed on the platform. It also uses the all or nothing business, model

This site offers equity, reward, and debt crowdfunding to ideas that are within Asia. Like most of the above platforms, it uses an all or nothing business, model

COLOMBIA

This platform targets startups and SMEs that need funding. Investors can invest their money starting from $58. It targets startups, as well as small and medium enterprises, looking for alternative financing that matches their needs and plans.

COSTA RICA

This is a crowdfunding platform in Costa Rica that gives a platform to several startups to have their ideas funded. They fund projects in a wide range of fields that is; entertainment, technology, agriculture, etc.

CROATIA

This Croatian crowdfunding platform also funds a wide range of projects and cause-driven ideas in several industries. However, the success rate of the project is still too low as compared to other established platforms worldwide

DENMARK

This is a Denmark based crowdfunding platform that funds both charity causes and entrepreneurial ideas. To create a project for funding on this platform is quite accessible since the link for adding a project is the header section of the website

EGYPT

It is one of the leading crowdfunding platforms in Egypt that funds a wide range of ideas. As their tagline says “Be part of the next success story,” this platforms core role is connecting startups with potential investors

This is another crowdfunding platform in Egypt. Potential investors lend money to promising startups that they have to pay back in an agreed period.

FINLAND

It’s an equity-based crowdfunding platform that is meant to connect investors to exciting starts. They also invest in already established SMEs

This is another crowdfunding platform in Finland that gives a chance to exciting startups to source funding from potential investors. Campaigns on this site typically run for 1 to 2 months

This is an equity-based crowdfunding platform with its offices in Helsinki, Finland. Funding on this platform is given to startups that have been adequately analyzed to industry experts

FRANCE

This is a French crowdfunding platform that was launched in 2010. Its funding success rate is at 69% and has helped over 49000 ideas become a reality.

This is another platform in France that has funds projects that are highly innovative and creative in nature.

This platform has over 110,000 members that are committed to assisting those having good ideas become a reality.

This is also another crown funding platform in France that put its focus mainly on projects that are directly or indirectly related to Agriculture

This is also a French-based crowdfunding platform that specializes in funding ideas and projects that fall in the finance category.

NETHERLANDS

This crowdfunding platform focuses on funding early-stage businesses to leap. The funding that is given starts from as low as 1000 Euros.

This platform has been in the game for nine years now, and it has empowered many entrepreneurs by giving them seed capital. It is one of the leading online funding portals for SMEs

This platform provides funding in the form of subordinated loans with an option for equity conversions.

This platform has managed to successfully help more than 2000 ideas to be turned into sustainable solutions to social problems. They do this by offering low-interest loans to entrepreneurs.

This platform focuses on investing safely in new and promising businesses. The minimum amount to invest is as low as 20 Euros. After the investment, investors become co-owners of the company.

GERMANY

This one focuses on relatively significant investments that are between €350,000 to €2.5M. It is one of the biggest crowdfunding platforms in German  

This platform is ideal for startups with promising and fast-rising ideas. It remains with a certain percentage of investment capital collected as an investment backup

This platform funds startups with seed capital starting at €100. The minimum for those contributing towards funding these projects starts at €5

This is a real estate crowdfunding platform that allows investors to put in their money that is later invested in real estate startups.

GHANA

It is one of the few crowdfunding platforms that funds innovative and exciting ideas. The beauty of this platform is that sending money can be done via your mobile money. So it’s easy for well-wishers to fund ideas that excite them

This is a Ghanaian based crowdfunding platform that is only focusing on supporting exciting ideas in the agricultural sector.

INDIA

This platform offers peer to peer lending services to rural entrepreneurs in India. Since its start in 2008, a lot of entrepreneurial ideas have been turned into reality, and the lives of people have been changed

It is another peer to peer lending platform in India where lenders and borrowers interact without the involvement of banks.

This platform was created in 2012, and it mainly encourages corporates to search for projects on this platform that they can fund as corporate social responsibility.

This platform was founded in 2010 in Mumbai. Since then, it has been funding projects in the creatives industry that range from music, photography, performing Arts, etc.

This is another crowdfunding platform in India that focuses on funding projects in the creative arts industry. It was founded in 2016

ISRAEL

This is an Israel based crowdfunding platform that has over 41,000 and already with $1.4B committed funds.

This is another crowdfunding platform in Israel that connects Israel supporters around the world to some of the most exciting ideas in Israel that they can fund.

This is another crowdfunding platform in Israel that funds early-stage startups and small businesses

This platform also focuses on supporting early-stage startups. Project creators keep 100% ownership and control over their work. Instead, they offer products and experiences that are unique to each project.

It connects Angel investors to startups. Startups that are funded on this platform undergo a certain level on assessment to make sure they are worth the investment

ITALY

  1. eppela

Its an Italian based crowdfunding platform to support Italian based companies to help them grow

This crowdfunding platform funds and SMEs that have been validated by the market and those that have verified by a network of expert partners.

JAPAN

It is one of the leading crowdfunding platforms in Japan that mainly funds tech ideas. The funders are mostly single men investors above the age of 40. Experts analyze projects and ideas that seek funding on this platform before they are posted

This platform funds a wide range of ideas for startups and small businesses in Japan. Some of the common projects on this platform fall mainly in the creative art and tech industries

This is the largest crowdfunding platform in japan that funds early-stage startups and SMEs in japan. They accept ideas from almost all industries

KENYA

It’s a Kenyan based crowdfunding platform that supports startup and SME ideas. Charity causes are also funded on this platform

MEXICO

This is the first and largest crowdfunding platform in Mexico that makes acquiring funding for promising startups a bit easier

This another platform in Mexico that connects startups and SMEs with great ideas in Mexico to potential investors

This platform helps entrepreneurs in Mexico find business partners not only for money but also to build a partnership and do business together

NIGERIA

This is a crowdfunding platform that is based in Nigeria and connects startups and SMEs to potential investors through their website.

NORWAY

This platform is based in Norway and was established in 2012. It has had a good number of successful campaigns with its success rate standing at around 36%

PORTUGAL

  1. Brick Funding

This is a real estate crowdfunding platform that is based in Portugal. Investors on this platform look through potential real estate ideas that they can invest money into and earn a profit at the end of the day.

It’s another crowdfunding platform based in Portugal that funds project ideas and charity causes across Europe

SOUTH AFRICA

This is an equity-based crowdfunding platform in South Africa that connects investors to early-stage business where they can invest in exchange for equity

This is a royalty-based crowdfunding platform in South Africa. It was launched in 2017, and it’s the first black-owned platform in South Africa

This is a reward-based crowdfunding platform in South Africa that was launched in 2011. It uses the all or nothing model that is used by other famous platforms like Kickstarter

This is another equity-based crowdfunding platform that connects investors to startups and project ideas in the livestock industry to invest in exchange for equity

SPAIN

This is a Spain bases platform invests in promising projects. However, this platform closes its fundraising round after 21 days.

This is another Spain based crowdfunding platform that was able to raise over €8,948 for 222 projects in 2018 only with a success rate of 92.12

This an equity crowdfunding platform that allows people to invest in best Spanish startups €3000.

SWEDEN

This platform is based in Sweden. It has over 250,000 registered members and over 65,000,000 million Euros invested in startup companies.

This is another crowdfunding platform in Sweden that has raised over 92,000,000 Million Euros. It’s a platform for investors who want to invest money in real estate ideas and projects

This is another real estate crowdfunding platform based in Sweden that gives a platform to anyone with a real estate idea to get a loan through crowdlending

SWITZERLAND

This a real estate crowdfunding platform based in Switzerland. They claim to give annual returns of more 6% to their investors

This is another crowdfunding platform in Switzerland that funds projects that are related to sports.

TURKEY

It’s a Turkish based crowdfunding platform that funds ideas from a wide range of fields. Tech ideas are however the most common on this platform

UAE

This crowdfunding is one of the leading in UAE and funds a wide range of startup ideas and SMEs. They have a success rate of over 67%

This is a real estate investment platform that allows individuals and families to invest in attractive real estate projects and earn a profit when the project kicks off

USA

Kiva has raised over $1.2 Billion in terms of low-interest loans to new small business owners in the USA. Their loans do not come with interest, and the maximum they give out is $10,0000

Go Fund Me is a crowdfunding platform that has raised over $5Billion to fund new promising ideas with no conditions attached to the funding. All you do is submit your idea, and how much you need, then people start raising funds.

This crowdfunding platform gives out small loans of up to $500,000 to small businesses that have to be paid back within five years. You need to have a good credit record to qualify for these loans

It’s another platform that funds new promising ideas with no conditions attached to the funding. All you do is post the details of your idea on the platform and people will start contributing money

This crowdfunding platform also gives out non-conditional grants to new ideas. Their selection method of ideas to fund is quite more flexible than kick starter

UNITED KINGDOM

This is one of the biggest and longest-established crowdfunding platforms in the UK. This platform favors funding businesses that are already in operation over new ones

This platform gives unconditional funding to startups. On this platform Angel investors and venture capitalists, friends, family, and tribes of supporters help new entrepreneurs to raise seed capital

On this platform, only companies that are already backed by professional business angels are given funding, and after that, the investors take an active role in monitoring the operations of the business.

This is the UK’s largest crowdfunding platform that connects project ideas with communities to give support to make these ideas become a reality

It is a social lending platform where those who invest in the ideas that they list earn a little interest from the businesses they invested in. The ideas that are favored on this platform are those that make a positive impact

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Should I create my company all alone or with a business partner? 14 steps to know

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The thought of starting your own business is scary and daunting. There are endless doubts and numerous considerations to ponder upon before you begin your journey. Out of all the factors, an important one is whether to start alone or with a partner. Is your business vision just yours, or is it a vision of a complete team?

Well, both situations have their pros and cons. Where having a partner can help you in the expansion of business with a dynamic approach, starting alone will offer you wonderful control over your journey. Thus, to make the decision easier, we have summed up the benefits and downfalls of both situations. This will help you in getting a clearer vision of what you want and how you wish to do it.

Benefits of starting alone:

So we will start by analyzing the process of starting your business, all alone. What does it have to offer? Let’s dig in.

You can follow your vision solely:

We all want to be entrepreneurs, so that we can follow our vision solely, without any compromises. And this is exactly what starting up alone offers. This is helpful for starting up as you will focus on one vision only, and it will boost focus too. This strong commitment is essential for success, and you can get higher probabilities by starting alone.

Flexibility:

Starting your business alone helps you with flexibility. You have your working hours and creative control. You can work as much as you want and increase your potential to earn as well. Flexibility is crucial for growth, and it has a positive impact on your business and the team too. Without partners, you can put together anything that you consider the best. 

More Productivity:

Working alone can boost your productivity in several ways. You have a complete say about what you want, and you make your decisions on your own too. The time for team meetings and votings etc. will be saved, which will give you more time to spend on what matters. You make your own decision and do it the way you want it to without wasting any time. If you think that you require manpower, then hiring employees can boost your productivity even more.

Disadvantages of Starting your business alone:

Now, there is always a risk involved in everything in life. And there are cons of starting your business alone too.

Financial Risk:

Business is all about finances, and losing money is the biggest fear and risk involved. Start-up costs and material buying all sum up for a hefty budget. A lot of people start their business through a loan. Thus, the biggest wish every entrepreneur makes is to get successful and not go into loss. When you stay alone, you are the only one who has to bear up with the finances and deal with loss (if there is any). With partners, every finance is shared, and you don’t have to give in your all.

Time Commitment:

Starting alone demands a lot of time commitment. You certainly have the freedom to work at your ease, but you do know that you are the only one who has to get everything done. And no matter how much you manage, you have to give in a lot of time. You might have to work 15-18 hours per day even.

Benefits of Starting with a Partner:

Some people consider starting a business with a partner, as a much safer and better option. And we cannot deny the fact that it does have some meaningful benefits to it. Here are the benefits of starting a business with a partner:

Spread the Risks:

The risks are not yours all alone when you start a business with a partner. You will have different sources of cash flow, which will help you in starting up and growing your business incredibly. The risks and losses will be spread between your team or partners, which will make you feel less burdened then being the only one to deal with all the losses. This is a huge pecker to consider while starting up.

Diversification of Expertise:

 You cannot be an expert in all areas. Maybe you are good at designing, photographing, and managing or leading. And you need someone to be good at accounts and merchandising. This is where you can pick partners from different expertise and create a magical team.

More hands to work:

Entrepreneurs are like jugglers. You have a ton of tasks at your hand that needs to be done. With a partner, you can divide the juggling. You split tasks, and everything gets done faster. This also allows you to tackle more issues at a time.

Disadvantages of starting with a Partner:

Here are some cons of starting your business with a partner that needs to be considered before you make a decision:

You are not the SOLE decision-maker:

As an entrepreneur, you need complete control over your business, but with a partner, you will have to split that up. You cannot take all decisions independently. You have to make decisions with your partner and make sure that you both are on the same plate. Otherwise, it will raise arguments which are unhealthy for a business duo.

Profit is Split:

This is obvious, isn’t it? If the losses are split, the profit is too. And with partners, it is always on a perfect 50/50 note. People who start up alone, take all the profit, and that seems very attractive. But when you start up with a partner, all types of finances are divided.

TAKEAWAY: WHAT IS BETTER?

The question is, what to do? What is better?

The answer is with you by now. You know what you want and how much you can juggle, and everyone has their own set of requirements to deal with, which becomes the basis of your decision. If you don’t want to split your vision and you are okay with dealing with all the financial burdens, then starting alone will be amazing for you. On the other hand, if you don’t have a good budget and you are not too good at some things, you can partner up with someone who might be willing to share your vision.

Entrepreneurs these days prefer starting alone, and then they gradually built a team, hiring employees. This is because everyone can’t understand your vision and what you are aiming at. However, at the same time, starting alone requires a lot of time commitment and endless juggling and effort. Therefore, make your smart pick and start your journey.

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