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Don’t let down these errors have ruined many startups

March 3, 2017

Beijing on February 9th news, according to technology website CNBC reported successful startups but once failed, There are plenty of people who, will lose badly, the loser will generally make the same mistakes. Recently, venture capital firm Golden Gate and INSEAD business school jointly issued a report that lists a series of reasons startups to death.

 

In fact,

entrepreneurs now very happy, at least in the financing thought to spend much less, as long as you have the project value, many companies are willing to invest, not careful, your company may become the Unicorn (over $1 billion valuation). However, sometimes too much money is not a good thing, because it will lead to overconfidence entrepreneurs.

we come together to understand the entrepreneurs who are prone to mistakes:

low operating efficiency

sometimes, money filling and over valuation will make decision-making process many startups is stale, causing some irrational investment, resulting in low operational efficiency, defeated by his opponent in the market.

products are not suitable for market

The

report in about the mistake mentioned the United States startups Blippy, the company will allow users to get their debts and credit card shopping information posted on social networks. This feature is not acceptable for users involved in sensitive information. Investors said that this is simply selling confidence and user trust.

understanding of the market error

was founded in 2011 Chinese ventures is a group purchase site Gaopeng, the operation mode and the famous Groupon similar, when the Tencent bought half of its shares. The report concluded that the final decision makers Gaopeng fail because of the failure to understand the China market. "Groupon in marketing mainly by email, although many people warned Chinese rarely see email, but confident friends still go its own way. When it comes back to God, it has missed the best time." Report wrote.

product development is poor, weak competitiveness

market competition is another reason for Gaopeng failed, when the rise of large-scale group purchase website, Chinese market one time 5000 similar sites, fierce fight, live site less than 10, eventually leading the market only three of the giant. Therefore, if you are not a side, irreplaceable, became inevitable failure.

error estimation

to a newly created company valuations are looking ahead, but the accurate prediction of the future is not an easy thing, all kinds of "noise" will appear to interfere with the audio-visual. Because many companies are private companies are listed, so its valuation is generally high, but the valuation errors are likely to "Pengsha" startups.

in summary, the report considers operations >