Why do startups fail?

Stories of successful multi-billion dollar start-ups regularly make their circuits, wooing millions into trying their luck on the same. However, sadly, the countless failed start-ups are not reported and many such start-ups die a silent death. What these young entrepreneurs (or even older ones for that matter) don’t realize is that, though they may acquire the investments for a startup, there are various factors that could still be the cause for failure.This is because they cant generate revenue from those investments in due course of time.
Without proper customer retention management planning, the idea may not attract enough customers, thus driving your business into aloss. Very few people possess that far-sightedness to gauge the customer reaction and participation to your idea. Hypocritically speaking, yes, hypocritically. No, I haven’t made a typo. So, hypocritically speaking, new entrepreneurs aren’t at fault either. With no experience whatsoever, with the excitement of a new venture, things are missed out, like publicizing, satisfactory surveys, feedbacks, etc.

ï The first and the most important step is to publicize all the way from heaven to earth for your organization. Publicity is going to catch the attention of your potential customers, so make sure that it is good and, well, convince that your customers NEED what you are providing.

ï Now that you have gathered interested customers, the next step is to make them stay. One policy that organizations can refer to is customer retention management.
• Delving deeper into customer retention management:

Customer retention management activities encourage customers to stay and remain loyal to the organization. As rightly said, customer retention is directly proportional to revenue. It is observedthatretaining old customers is more feasible and advantageous than losing and then acquiring new customers every time. There are three main stages of customer retention management:

ï Customer acquisition.This is the toughest step. Attracting people. Humans have gotten mundane over the decades, and thus harder to convince. Mainstream or not, thinking out of the box is essential. Otherwise, the idea will be stuck on a poster forever, without anyone giving a second glance to the billboard.

ï Customer retention. You can use many tricks like giving out offers, free stuff, discounts on the services that you provide. Initially, it may lead to losses, but in the long run, the organization may gain popularity and hence make the customers stay. If the word gets out that your organization is the most user-friendly, then you’re all set to ride full sail.

ï Customer development. Now, no one likes angry customers. Pay heed to feedbacks, no matter how trivial they may seem to be. Fix the glitches as soon as possible, and maybe provide that particular customer with a free trial of the improved version of your service. This will further add brownie points to the organization’s reputation.
• When you have gotten your startup up and running at least for the basic factors, move on to the most critical factors like managing resources, deploying a team especially for satisfaction survey, handling deliveries true to your word, managing bottlenecks without much loss, surviving therecession, and most importantly keeping up your goodwill.

• More complex procedures like feedback loops, satisfaction survey that keep an in depth researched database about the satisfactory levels, can be done later, once the organization has established a safe and a constant market.

Conclusionr
Startups may be all the rage right now, but handling, maintaining and reaping excellent results from them is a huge feat. A huge risk factor is involved, because our market is unpredictable. Rates change overnight, so you have to work hard to maintain your position. Intuition and risk taking are very doubtful approaches, so stay away from them in the initial phases of your development. Keeping all the above factors in mind, one can make their dreams of a successful start-up a reality