Why do new ventures fail

The success of projects can be controlled. When promising projects fail, certain failures can be found surprisingly often. These include questionable and indiscriminately implemented marketing strategies or a capital base that is too thin. Likewise, a company can fail if the merchant neglects his marketing efforts or overestimates the product. The prospects, on the other hand, increase when structured procedures come into play and careful planning prevails.


Again and again there are reports of companies that show sensational growth rates in the shortest possible time. However, the number of companies whose success is the result of long-term planning is significantly larger. Perseverance and entrepreneurial foresight are also indispensable criteria in order to assert oneself in sometimes highly competitive markets. Delegating tasks and obtaining expert advice at a crucial point can make a significant contribution to the company's success. An outside view often reveals the six most important reasons for a company's failure. However, these can be mastered - with the right partner at your side.


The client should already be able to specify his planned project at the time the offer is obtained. This applies to everyday Internet pages - here the corresponding specification can remain a bit clearer - as well as to complex portals or online shop solutions. Projects without specifications not only remain colorless, but can neither be precisely calculated by the agency nor assessed in terms of their chances of success. It is precisely the imprecise calculation and the challenges that have not been taken into account that often turn the project into a shot in the dark. Successful companies describe their projects carefully. Only such a detailed project description enables the client to compare offers, take technical and functional challenges into account and thus plan projects successfully. Incomplete or incorrectly specified projects, on the other hand, are often doomed to failure at this early stage.


Customers often rate products intuitively. Research in neuromarketing has shown that a consumer only rationalizes his purchase decision after the deal has been concluded. If it is not possible to convince the consumer of the necessity of possession, a significant sale is almost impossible. Merchandise offers with a bad image experience a similar fate. Before entering the market, a needs analysis can provide information about whether and which marketing opportunities are to be assumed for a product. Goods that nobody needs find no market either. If, on the other hand, there is a need, but the consumer can hardly develop sympathy for the article, this problem situation is often due to marketing errors in advance. An image campaign can be helpful in this case. However, it is more advisable to discuss the marketing strategy with a specialist before entering the market.


Before entering the market, start-ups deal intensively with the business plan. If the investment of external donors is necessary, these business plans are subject to strict scrutiny by banks or other experts. If this test procedure is omitted, the start-up is sometimes quickly faced with the disastrous consequences of a possible bad planning. Most ventures are doomed to failure if follow-up costs are not taken into account after the project has started. The proportion of costs for marketing, advertising and optimization is particularly often underestimated. The assumption that a product sells itself speaks of the manufacturer's trust in the marketability of his article - but not of entrepreneurial foresight.


If the project succeeds in entering the market, many entrepreneurs hope for lasting positive results. Unfortunately, it has been proven time and again that success leads to countless imitators. The larger the number of competitors, the more necessary market analyzes become. Initial successes are quickly forgotten when your own price is undercut, third parties come up with innovations or have better marketing strategies. Well thought-out marketing, as only a specialist can do, allows the entrepreneur to concentrate on his core tasks without having to fear a loss of sales. If changes are observed in the market, they do not pose a threat, but instead offer the opportunity to build on the initial success.


Many will still remember the launch of cell phones and smartphones. The formerly astronomical acquisition costs have experienced an unparalleled drop in prices. A number of products share this fate. No article can bring in more than the market is willing to give away. Regular price comparisons between the individual providers are part of the list of duties of a successful company. We are happy to take over this part for you. What we cannot control, however, are exaggerated profit expectations in too short a time. Startups in particular are often faced with a rapidly dwindling capital base and try to get into profitability as quickly as possible. Many a good idea has already failed in the long term because of this.


The successful marketing of a product and the development of a brand are mostly the result of a well thought-out and long-term marketing strategy. In addition to countless analyzes, evaluation comes first. It is important to evaluate decisions, to review the success or failure of individual measures, to develop new strategies if necessary and to learn from mistakes. This overall service is ideally in one hand and follows a concept that is to be drawn up in consultation with the company. Individual measures can attract attention selectively and are effective in the short term. We, on the other hand, rely on the efficiency of long-term cooperation. This includes the use of all customer loyalty measures with the help of powerful content management systems (CMS), an appealing website that is also convincing on the move, and thorough and individual preparation for each project.

As one of the two managing directors of Klicktivisten GmbH, Steffen Schreiber is responsible in particular for the legal and marketing departments. Please send questions about this article to [email protected]