A report was churned by venture capitalist database CB Insights on why so many startups fail. The number one reason decoded was a lack of demand for the product. This topped other factors such as insufficient cash flow, competition or poor timing. Three strategies have emerged on how entrepreneurs can test their product or service before launching it in the market. First of all, one must seek successful competitors already working in it. For example, Yelp got in after Grub hub and Seamless had already established themselves. Yelp further entrenched its position after the acquisition of Eat 24. Proper business intelligence needs to be decoded reading online search traffic. To this extent, Ahrefs is a useful keyword research tool. For products not yet established, customers gauge the promises made and not the final products about which information available is little. Thus, pilot launches may be undertaken or pre-sales models such as Kickstarter used.

Source:https://hbr.org/2018/08/the-simple-question-that-can-make-or-break-a-startup

Uploaded Date:16 August 2018