One of my goals when I applied for Fulbright was to come and learn how business is conducted in the US and take some few pointers that can help startup entrepreneurs in Lesotho. I have observed how things are done here and so far I have identified the following Reasons why most Startups do not succeed at home.
1. Business offerings do not align with customer needs.
Most entrepreneurs create the products that they think consumers need whereas that is not what customers necessarily need. If you create a product or service find a way to align it with the needs of customers.
2. Lack of clarity of purpose
Most startups fail because they offer too many products or services at the same time and they end up losing focus in their core business. Focus on one thing then when it succeeds, move on to the next one.
Too much diversification in the beginning of the business can hurt ability for growth. Focus on perfecting what you do best, this is how you gain competitive advantage.
3. Lack of commitment and poor management
Most startup entrepreneurs are committed to too many things that they run their businesses part time. Just like a small baby, startups need full commitment and attention. You gotta be willing to put in an extra effort and work overtime.
4. Lack of Support
Support can either be financial or materialistic. Most businesses start well with the ability to grow but growth is hindered by lack of funding for investment ready businesses. Lack of resources such as labor, machinery, etc., can hinder growth as well. A supportive business environment also plays a significant role in the success of startups.
5. Lack of Innovation and adaptability
Most of the companies start without a clear strategy. This can be very difficult for the company to adapt in uncertainty. Some businesses start as copycats and they don’t last long because the original idea doesn’t belong to the implementer.
Another issue is that some entrepreneurs think way ahead and forget to cater for how things are done today while others do not think ahead then when change or uncertainty comes, they fall.
6. Poor Marketing and lack of clarity on who the target audience of the business are
Most entrepreneurs depend on sympathy and few close people for their businesses to survive. They don’t focus on delivering value and building a customer base for their businesses.
7. Running a businesses like a nonprofit organization
A business needs planning. You need to have a business model that will guide you on how you are going to make money. How you are you going to be unique from your competitors and how you are going to deliver that value.
Let’s build growing not surviving businesses