90% of startups fail. Most make it through the first year or 2, but more than half of all small businesses crumble before year 5.
Why?
Businesses ultimately fail when they don’t make enough money. The startup either can’t afford to continue operations, or the owner quits to reclaim work-life balance and a better (more consistent) salary.
Factors like mediocre products, lack of demand, and tough competition get the blame, which is rightfully so.
But you’re not here for your startup’s post-mortem, are you? No, you’re here to stop the bleeding and start making money. Fortunately, you’ve come to the right place.
We spend a lot of time around startups (hence the name, Foundr), so we’ve seen it all. If your business isn’t making money, it’s not because of cruel fate or bad luck—there’s a reason. And if there’s a reason, there’s a fix.
Recent years have thrown novel challenges at founders ranging from global health crises to supply chain intricacies, making it harder than ever to build a profitable business. Add the plunging venture capital funding to the mix, and you’ve got a downright tricky situation on your plate.
Below, we’ll walk you through all the different causes for why your business isn’t making money. Not every reason will be relevant to your business (we sure hope not), but you’re bound to be making at least one of these profit-blocking mistakes.
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10 Reasons You’re Not Making Money (And What to Do about It)
Recognizing the issue is the first step. Next, it’s time to do something about it. Below, we’ll help you with both.
Whether your business stopped making money or never made it in the first place, you can get to profitability. You just need to walk the path of self-reflection and make the necessary changes.
Here are 9 likely reasons your business isn’t making money:
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1. No Product-Market Fit
Solution: Start over or adjust your messaging to fit a market.
This cause is the hardest to swallow, and that’s why we’re starting with it first. Many startups fail because they tackle exciting problems rather than solving market needs.
While interesting problems often make for inspiring….
Source: ( foundr.com / Financementality.com )
