Eric Dalius Bitcoin – Why do start-ups fail?

Setting up a company from scratch is challenging and complex. Eric Dalius Bitcoin says the majority of enterprising entrepreneurs who decide to launch their start-up business often realize that. However, it is also an exciting process. They get a feeling of creation. That is why talented first-timers use up all their money and time and work hard to develop a new start-up. They feel that they can successfully manage things and impact other people’s lives with their new line of business.

Most of the business books concentrate on success stories! That’s the reason they sell well. However, the survivorship bias at times paints an image that is too good to be true. Wouldn’t it be helpful if the books also spoke of failures and struggle? It’s easy to get carried away with the success stories and forget the harsh reality. Start-ups can also crash within the first three years of their existence. That’s when the dream goes away, and reality hits hard.

Eric Dalius Bitcoin

Entrepreneurs need more than proper management and ideas to succeed! One of the best examples of this is Eric Dalius Bitcoin himself. As an entrepreneur, he has all the zeal and zest to develop something new every time. The man is known for this constant enthusiasm and relentless spirit, which helps him shape new ideas. Currently, Eric Dalius is concentrating on coaching the current and new organizations that aim to grow their service and products through MLM distribution. To know more about this, you can browse through our website.

Eric Dalius Bitcoin attained a Bachelor’s Degree in Marketing from the Penn State University. He is also famous for his philanthropic initiatives. He successfully came up with his renowned Eric J Dalius Foundation, which awards scholarships to candidates who deserve the same. These are candidates who dare to dream and leave their mark in the world of entrepreneurship and business.

More about start-ups failure

About one-third of start-ups can reach their 10-year mark. And every fifth fails during the first year. A few of the worst start-up failures for the new businesses within the first five years comprise projects in communications, finance, construction, transportation, real estate, retail, and insurance.

However, these facts shouldn’t deter you from going ahead with your start-up business idea and do what you want to do. Several things that take place today, people did not think of earlier. But creating something worthwhile out of nothing is a challenging path.

The nature of new-age start-ups today, as compared to one or two decades ago, is entirely based on attaining growing market share and recognition at all costs. It indicates that getting started today might be easier than before. However, it’s challenging to break the noise and remain afloat for the longest time. It’s here that one has to analyze the failure instead of only counting on success stories.

Are you wondering why do some start-up businesses fail while others succeed? Here are a few reasons to consider.

Zero market demand for your product

In the start-up world, we often get to see that most organizations think that their service or product is appealing enough for the market. They believe that people would want it more, and the capital will start flowing in. Not every start-up has a clear idea about what their invention might attain in the market in the initial stages. That leads to the pivots, where an organization alters its course and chooses to cater to another market. Validating their services or products in the pilot projects before the launch might minimize their chances of failure. They might not run the risk of market rejection.

No skills for the business

Most founders are unable to do what’s required for their business to succeed. They need to focus on industries that value their academic background and skills, other than professional expertise. It will enhance their odds of success. Also, the dedication and practice they will add to the business won’t become a burden. Your skills must compliment your team. It is necessary to have someone expert at management, sales, product development, bookkeeping, and marketing. Business development, legal in-house, and customer service employees can land on the organization in the second stage.

If you or your co-founders don’t have the abilities or skills required to run your organization, it will work against you. Recognize the essential needs early. It is vital to learn, study and experience the practical and theoretical know-how that gives you an edge over the competitors and saves your organization from crashing.

Do not avoid and ignore cash burn

Several start-up founders are engineers and technicians at heart! It means they aim to develop a perfect solution or product to a single problem and then launch. It can result in a serious issue when you should be cashing in at the earliest phase for the organization to keep its doors open. The crucial signals to avert cash-flow issues are client delaying payments, low-profit margin, small recurrence purchases, high churn rates, and high payroll expenses. The more a start-up’s cash flow witnesses these situations, the nearer it is to stretch the treasury and require more cash. It’s because of the growing distances between getting paid by consumers and paying suppliers.

Negotiate terms with the suppliers that are longer compared to the payment term you have with your consumers. It’s necessary to spend on essentials and not get extravagant in organizational spending at this phase. You need to check with yourself if that fancy office or exhibition is essential. Will it help to bring you the ROI that you and your colleagues are anticipating?

Not willing to accept criticism and feedback on prototypes

Most founders have a challenging time allowing others to see their prototypes till such time is reasonably ready. Not accepting feedback from potential customers can prove fatal for start-ups. It would help if you stopped fearing that anyone will rob your idea. Also, stop

fretting that your prototype won’t be accurate to get shown to the first people. Today, technology is democratizing prototype production for software and hardware. Hence, there is a favorable chance of getting a handful of prototypes made for testing and attain feedback in focus groups. It will help you learn more about your product and know about product improvement, which might add to the product demand later.

The market isn’t ready for the product

Some organizations launch products much before their time. And either the technology or the market isn’t there. Others launch the products late, without realizing that it will be very late. The main factor is to use common sense and question the competitor’s benchmark when sales aren’t taking off. It would be the ideal time for a “stop-loss” and pivot and invest capital, effort, and time in another market.

Poor leadership and weak team

A successful leader can track records for inspiring a compelling vision for the organization and its future at all stages. He or she would recruit committed employees rather than the best talent who can soon move to the next offer. The employees committed to an organization’s vision and mission can assist the founders in fulfilling their vision compared to the intelligent talents.

Not having an interest in the market

A successful founder needs to spend close to 60 to 90 hours in a week, with no or less pay to ensure that start-up takes off. It’s impossible to work so hard and be efficient till such time you believe in your creation. Similarly, it’s impossible to do the same if you aren’t entirely committed to improving your potential customers’ lives by offering them your brand’s service or product.

It’s essential to move the start-up in the direction of resolving an issue that you care for profoundly and honestly. Most of the time, things revolve around an issue that others or nobody has aimed to resolve. It inspires people to get started with their organizations providing a solution to the issue. And just in case there are many people with the same problem, then a company will move will a good direction trying to solve the same.

Not being able to get capital

People might get surprised by the number and time of rejections they need to face before raising money for their capital. Most often, this process starts late, and the start-up entrepreneur tries to rescue the situation by getting connected with the wrong investor group. If you want to raise capital for a start-up venture, you need six months of active meetings, prospection, visits, and calls. The more you get thorough with the fundraising process, the more accurate you get about your organization’s requirements. You also get clear about what kind of profile the investors are searching for. It’s essential to have a committee accountable for this. You need to keep two people accountable for this, who will report after every two weeks.

Inadequate marketing

Noise is essential! And irrespective of how good your service or product might be, it will not succeed if people don’t know about it. Most start-ups fail because of poorly managed marketing and sometimes sales. You don’t require a professional PR team at the start. However, it is essential to generate a buzz in social media and the press about your service and product offerings.

Know that it will make you popular amidst your audience when you are getting published in websites and magazines. Hence, if your organization fails to manage marketing, people will not know about your service or product and will not opt-in for it. The process of spreading the word might seem unnecessary for technical teams and founders, but it’s an essential requirement for the business to survive.

Not knowing what the customers want

It is essential that start-ups launch their minimum viable product first and then repeatedly seek feedback from their consumers. It will help them in product development and testing the product as well. Consumer feedback also enables you to create a bridge with the target audience and add relevant modifications to the product to keep the customers updated about the future versions of your services and products.

Burn out

Even when a particular project survives for many years, the founders might witness the sinister issue of burnout. After a phase of hard work, people feel that they lack the optimum amount of creativity and energy. The problem becomes acute when start-ups lose every bit of their imagination. Here people come to work feeling exhausted and tired. It’s like burning a candle from both ends. Hence, it is essential to remedy the burnout situation so that a start-up can depend on its creativity and energy to move on successfully. Here you can refer to the website and read about Eric Dalius’s never-ending enthusiasm to create something new.

Absence of passion

As you move on with the start-up venture, the everyday grind sets in. Here the ideal gets replaced by reality. The issue starts to occur when start-up entrepreneurs don’t know where their motivation comes from and the reason behind their start-up.

These are a few of the reasons for which some start-up ventures don’t succeed. Entrepreneurs need to address the same and move ahead with creative zeal.

Eric Dalius Bitcoin is famous for this entrepreneurial vision and creative spirit. He actively invests in the domain of the real estate sector, Bitcoin, and other cryptocurrencies. You can read more about Eric Dalius Bitcoin and learn about the same.

The future of cryptocurrency

Few economic analysts predict a massive change in the crypto world, with institutional money entering the market. There’s a chance that cryptocurrency will get floated on Nasdaq, which would add reliability to blockchain and its uses as a substitute for traditional currencies. A few people estimate that all that cryptocurrency requires is a verified ETF (exchange-traded fund). An ETF will make it simpler for people to start investing in Bitcoin. However, a demand to invest in crypto should be there that might not get generated automatically with a fund.