The Ugly Truth: Why Most Bahamian Startup Businesses Fail
We thought we’d do this tiny article on startup failures in the Bahamas, as we’ve seen many startup businesses go-by-the-wayside because of ‘shameful’ mistakes.
The ugly truth is – startups don’t fail because they’re startups.
They fail because of the founders.
Startups themselves are risky; but it’s nothing more than a small group of people or one person, working on an idea.
Most startups fail because the founders lack the self-awareness to do the following:
- They want to grow the company in size too quickly, rather than focusing on reach and a solid clientele base.
- They don’t run enough hypotheticals that assume the worst – “Do your best but assume the worst.” – should be your motto.
- They assume that they know everything and end up not seeking the proper advice needed.
- They often can’t manage their own emotions – it’s never personal; business is business, especially when dealing with clients.
- They see raising money as the solution to their problems – Although it may solve 99.98% of your problems – it’s that one obscure issue that will ‘get’ you.
- They target the wrong people as potential customers.
Where do I go from here?
The worst mistake of all, however, is that most Bahamian startups get stuck on their original idea and refuse to pivot. We do a fair amount of consulting for entrepreneurs on their brand, potential target audiences, and general business knowledge base. One thing we encounter, over and over again, is that Bahamian startup owners tend to want us to validate the ideas they already have, rather than tell them what we genuinely think.
What happens then is the founders feel ‘married’ to an original idea. If you spend heaps of money on a marketing campaign, only to realize half-way through your product has some major flaws and you need to pivot – you’re going to have to admit (to everyone you’ve just advertised to) that you’re changing the direction of the company.
To find out more about potential ‘pitfalls’ for Bahamian startups and take advantage of our weekly ‘thought starters’ – like our page. Sign up for our free trial and get exclusive access to seminars on business building, venture capital and a vast support community of entrepreneurs like yourself.
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