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How to survive in the market, which killed 90% of players

Published: Sat, 10/06/2012 - 14:59
By: copy1

As you may have guessed, we are talking about the market of high-tech start-ups, which survive only 10% of companies. Moreover, most of the survivors in the first year and 10% of the companies stopped work for a few years after the start of work.

 

To learn how to successfully overcome the valley of death, it is necessary to identify the main causes of death of startups. They are:

 

  •     The lack of sales.
  •     The high costs of employee salaries, advertising and office rent.
  •     Lack of the necessary connections in the business environment and public institutions.

 

Is it possible to solve these problems?

 

Lack of sales

 

This problem is solved with the help of proper planning startup. Each high-tech enterprise should focus on sales from the first second of its existence. How will you monetize the service? How much you are planning to get in the first three months of work? Who will do the selling?

 

The answers to these questions before starting a startup, you can greatly increase the chances of survival. Remember that no one can sell your product better than you. Sell ​​it to retail customers, and investors. The project must generate income to develop successfully.

 

The high costs

 

Do not hire paid professionals, remove the cheapest office or even work in the garage, give up paid advertising. So you can briefly identify ways to address the high costs that are often the cause of death of a startup.

 

Begin to spend money only when your project will be steadily profitable. Allow yourself a nice office only in the event that a startup would be profitable. Otherwise, work independently and advertise your company in social networks, asking friends to spread the link to your site.

 

The absence of the necessary links

 

Have the right people in the projects. Business angels will help you get along with businessmen and government officials for a small stake in the company. Smart business angel capital is sometimes more valuable asset than a financial investment.

 

Participate in social projects that will attract attention to your project, representatives of local administrations. With the support of officials, you will be able to do for free that costs a lot of money.

 

Perhaps you have your own recipes to increase the chances a startup to life?