Believe it or not, many B2B startups fail. While some fail in the first month itself, by the end of 5 years, more than 50% startups are shut down. These numbers speak for themselves. If you own a B2B startup and are worried about its failure, you should look at the main reasons why such startups fail.
They Make It Hard for Buyers to Make A Decision
You are a startup. You should understand that the buyer doesn’t know you and is taking risks by trusting you. This is why you should take one step at a time and start small. Instead of aiming at big projects, start with proving yourself so that the trust factor comes into play in your favor. Go through your portfolio and come up with the easiest way of getting customers.
You can also offer money back or exchange services. Such terms are old but work like magic because “money back” instills a lot of faith.
They Are Not Clear
What are your offerings? What niche are you targeting? Who is your target audience? Many startups are unaware of this for a very long time. They start their business but don’t know to whom they should sell. It takes startups quite a few years to understand what to sell and to whom.
Thus, you should start working right from the beginning. You should identify your target market, understand their needs, and offer something that brings value to your customer. That is when you’ll hit the jackpot.
They Spend Haphazardly
There are certain things that you should do in a business and certain things to avoid. With startups, finances are usually tight. Despite that, a few startups spend the money in the wrong places. They are more worried about having fancy equipment than they are about making sales.
While this can’t be ignored in some cases such as retail and medical, you don’t need to spend too much on furniture in most cases. To start off with, you just need to have minimal equipment. Your focus should be your sales and you should spend your money on that. After you start making sales and your business becomes profitable you can spend on other things.
If you can avoid these three B2B business mistakes, your chances of being a successful venture will increase.
It is tough for B2B ventures to make the cut and be successful mainly because startup founders end up making too many mistakes. If you can find out what these mistakes are and avoid them, you will have a better shot at being successful.