Start-ups Financial Management
Why 90% of start-ups fail in their first year of life? It is not easy to give a simple answer and there are no miracle recipes to stop myself from closing. However, in Entrepreneur actually believe that the ultimate cause can be found in a poor financial management.
In this sense, published a short guide which shows some of the key points that every new entrepreneur should take into account when launching their company, and we believe you will be of great interest.
We deliver what people are willing to buy, not what we want to sell
Prospective entrepreneurs believe they have a fantastic and revolutionary idea that is so good to be an almost instant success. Launched by a blind optimism, prepare a business plan create your factory and wait for the public to discover how great “visionary.”
However, too often, to launch the new product is not made a serious study of the market or whether there is a need to purchase, or if we are able to generate such a need should not exist.
For example, suppose you want to get into the field of sports shoes. Our initial idea may be to create a shoe with the most advanced materials and sophisticated in the world, outperforming significantly above what is being done at this time. We do have the opportunity to be truly revolutionary, but so is that failure can be loud, for a lot of innovation that we instill in our product.
In this sense, it may be best that we have to settle for entering the field of high-end sneakers, because in any case it is better to have a small market share, than no market at all.