A start-up business has to overcome a lot of external and internal elements. Sometimes the pressure to keep the investor happy, and to produce a product before the funding end is a challenging task. However. according to the US Census Bureau, only 51% of a startup can cross five years span. On the other hand, Failory finds out that, about 90% of start-ups are bound to fail in the initial phase due to multiple reasons. And, one common reason behind 14% start-up failure is ‘not paying attention to the customer needs’.
To prevent any start-up from failing, there is a need to leverage AI. Wanna know why? Unlike the human brain, AI-based tools can store trillions of gigabyte data, access multiple data repositories, experiment with multiple data and hypotheses, and reach a conclusive and accurate answer in a matter of hours which a human could take ages to comprehend.
AI-based applications are programmed through machine learning, hence can identify the pattern in data more quickly and alter the course of action by learning from failures. Thus, produce accurate results for thousands of queries, more quickly than ever.
Also Read: Artificial Intelligence AI in Business Management & Industry
Reasons Why Many Start-Ups Fail And Ways To Avoid Such Failure
1. Aim To Produce Product Without Deep Market Insights & Knowledge
One of many reasons behind the failure of 34% of start-ups is not having a market for the product. While 42% fail to read the market need.
This fact is followed by the lack of marketing strategies and lack of diversity within teams. No matter how minor these things might seem but in the real world, it plays a significant role in the success of a start-up.
There are many ways to overcome this. One might ask how can one determine what people want? When do they want it? And where?
One of the most essential tips is to leverage Data Science.
Hold on! this doesn’t mean you have to do everything yourself. Rather you can hire an expert or opt for SaaS tools that let you view and compare the user data. Let’s take the examples of Google keyword planner or HubSpot topic identifier to identify the keywords for digital marketing.
These free tools let you view what people are searching for, the search pattern of users, and what the algorithm predicts for coming years.
Just like this, there are some instances for a start-up where their consumer market is located. Leveraging AI-based data science tools eliminates the need for trial and error, one can pre-determine the problem faced by the user and use it as an opportunity to provide exactly what is needed by the consumers.
2. Not Having Diversity In Start-Up Team
The second reason behind the failure of 23% of start-ups are not having a balanced team. This is either happens when you overlook the skillset and leverage knowledge or experience. But in long run, this doesn’t happen. A start-up needs diversity and a varied skill set that could balance the team.
What if we told you that there is a solution in the form of the Recruitment Application!
This is power by AI; this means you can embed AI-powered Chatbot into your recruitment page and let the system chat with the potential applicants and assess them. You can set certain pre-requisite for applicant against which the bot will evaluate the submitted application and scrutinize the one which accurately suits the job description. Simultaneously, notify HR about the selected candidate by automatically creating a ticket in the Odoo ERP for HR. This way AI helps in screening out the spammer before it could reach the HR personal for evaluation.
3. Poor Project Management & Feedback
The third reason behind the failure of start-ups is poor project management. But there is a solution for this as well, which start-ups can opt for it is, agile project management SaaS software.
One of the more most reliable solutions is monday.com. There are several reasons behind this. First, it allows the user to create an efficient project management plan. And, secondly, keep track of progress made by teams, along with project status.
In addition to this, it let you create a Scrum team for sprints. Each scrum consists of a specific team member without any in-charge and works on resolving a single problem for a month. They cannot stop until the client approves.
Moreover, opting for agile project management means you can take your product to the market for testing. And, improve the product as you go.
As a result of this process, the product will offer what your customers need.
Hold on! The science behind the success of monday.com is automation. And, automation is powered by AI. Where an AI, keeps track of all activities, helps the executive to view everything that is happening inside the start-up initiative at a glance. And, produce interactive matric containing a future prediction.
4. No proper marketing
The last reason topping our list is “unfocused and scattered marketing efforts”. A start-up needs a comprehensive marketing strategy. One cannot expect the consumer to visit them. So, what to do? Well, a probable answer is to leverage online marketing. It is almost free, driven by data, and reaches a wider and relevant audience. Besides, you can create a custom paid social media advertisement and PPC campaign that will be pushed to y our audience when they are more receptive or in dire need of your product.
Here the question should be what to do, how to identify the exact target audience, and when to pitch the content? All of this question has a single word answer, “HubSpot!”
HubSpot is probably the one and only tool that aim to resolve all marketing needs of a business.
Moreover, it offers a suggestion, that could make your content optimization and automation a success. With the help of HubSpot, you can create personas of your target audience, keep track of every conversation, and leverage the matric to predict future outcomes.
Also Read: Role of AI and ML in Zoho Customer Management
Conclusion
It is rare for a start-up to succeed without any help. There are many resources available on the internet that you can utilize for team building, business setup, mentor, and SaaS software to automate your start-up process. But the thing that you need to comprehend is, new age requires new solutions. And, the best solution available in the market is AI.
Unlike what people say, AI can do wonders for the start-up, simply by processing the information and predicting the outcome of a certain action. For consultation and SaaS software recommendations for start-ups, contact Techloyce.
