Business Mentor: The rise and fall of a startup

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Here are some of the reasons why some startups rise quickly but fall just as quickly.

I have seen quite a number of startups that did not last long enough. Most of them started out alright. The enthusiasm of these novice entrepreneurs is truly astounding. However, some of them want to grow fast too soon and things don’t work out.

3. When others copy what you started. Having many competitors may force you to decrease your prices to remain competitive. Sometimes it comes to the point of almost just breaking even. To again gain momentum in the business, an entrepreneur must gain the trust of his customers. Massive marketing efforts should be on the line, otherwise, you would waste what you have invested in your business.

5. Not having enough competent staff. As a business grows, staff need to be added. Competent workers may become short in supply. If staff are insufficiently trained, they might not do their tasks very well and customers will notice. A business will fail if it cannot satisfy its customers. 7. Doing legal shortcuts. Some entrepreneurs skip legalities because they want to grow fast and boost earnings. Once authorities find out, they can immediately shut down your business.

 

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