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How To Avoid Startup Failure

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Startup Success

The majority of startups will fail within the next several years. Some businesses fail right away, while others have brief success before they crash and burn. No matter the reason, many startups sink before they can swim. Social media and crowdfunding make it easy to start a business. There are many aspects that affect business’s success, such as demand, economic swing, and market factors that are out of their control. However, there are business features that new entrepreneurs can control to avoid startup failure.

Research and Planning

Startups that do not have a business plan and direction fail. Without research, you do not have a good grasp on what the market wants, and your product is not suited for the market. New entrepreneurs think that many users mean profitability, but that does not equate to revenue. In order for user numbers to translate into profitability, startups need to define value proposition and why your product is different from the competition. Long term planning keep startups on track for success. It helps navigate unexpected challenges that businesses face as they grow.

Underfunding and Overfunding

Businesses need capital in order to start. However, underfunding causes serious and sometimes fatal consequences. It can be the reason businesses fail to meet customer demands. It is better to wait until you have enough funding than launch a watered-down version of your product. Overfunding also causes problems for startups, because it produces tremendous pressure to perform well. A good example is SearchMe a text-based search engine launched in 2009 that had raised more than $45 million. The market at this time was largely untested and SearchMe was unable to produce results fast enough, causing disappointment and resulting in failure.

Ignoring What Your Customer Wants

Customers are the reason why you are in business. In fact, businesses exist to satisfy their customer’s wants. The problem occurs when businessmen fall in love with their vision and fail to see the market’s needs. Take ZipCar, a simple way to rent cars short term, and GoLoco, a ridesharing service. Both companies provide a unique way to access transportation in major cities. Go Loco’s cofounder, Robin Chase, later admitted that he made a mistake in creating GoLoco saying, “we built the website first and asked our customers about it later”.

Poor Management

Poor management is often cited as the top reason why startups fail. New entrepreneurs usually lack management and business skills in finance, production, purchasing, hiring and managing employees. Unless entrepreneurs realize that their business is not doing well and find help, they will face disaster. Management also requires constant research for what the market needs. This does not include other managerial activities like controlling, organizing, staffing, and planning. A successful manager is a good leader that creates a good work environment and encourages productivity. The secret to avoiding startup failure is finding an entrepreneur who is prepared, well organized, innovative, and armed with determination and positive attitude. When it comes to finding success as a startup the secret is you, the business owner.

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Business

We need to talk to Marketing and PR Agencies about Amazon

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Owner’s Magazine is writing an article featuring the top Marketing and PR Agency’s perspectives on why Amazon should choose their city as it’s next HQ. We’re reaching out to all marketing and PR agencies in each of the 20 cities on Amazon’s list for a private interview. If you’re a marketing or PR agency, then we want to talk to you to get your perspective of your city. Your interview and responses will be featured in an article published featuring your city.

Here are requirements to qualify to be featured in article:

  1. Must be legally classified as a Marketing or PR Agency (cannot only be a service you offer)
  2. Company must either be headquartered in a prospective HQ2 city or have an active office there (No satellite offices)
  3. Company must be at least $1MM+ revenue anually

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Camden

First Tech Startup to join Camden NJ

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Penji

First Tech Startup to join Camden NJ

Penji is a new tech startup who recently launched in Camden NJ. Instead of having costly all-inclusive packages that design agencies typically offer, Penji offers unlimited graphic design, unlimited revisions, at a flat monthly rate. The startup launched on October 21st 2017, a day after Camden Catalyst, a startup pitch competition hosted by Waterfront Ventures to bring startups into the city.

camden nj

 

Penji solves a unique problem that startups, small businesses, and agencies tend to have. According to Penji, startups and small business owners spend too much of their time attempting to design their own marketing materials, logos, business cards, etc. And even if they hire a company or a freelancer to help them, it often costs quite a bit more than they originally thought. 

” It’s a huge time waster. And that’s why we created Penji, to solve that graphic design problem for startups and small businesses.” – Johnathan Grzybowski (Cofounder)

Penji’s unique mission

Penji also has a unique mission. The startup plans to be one of the first community conscious startups to plant their flag in Camden NJ. For Penji, being a community conscious startup means giving back to their community on a consistent basis and in ways that truly helps their community. The startup plans to offer jobs and opportunities specifically for students and residents in Camden. Their goal is to hire as many talents as they can from the city with the hope of keeping those talents in Camden. Camden is home to major school institutions such as Rutgers, Rowan, Camden County, and Cooper. Despite having these big names investing in the city, few job opportunities currently exist for students graduating from any of these 4 colleges.

“The only way to successfully revitalize Camden sustainably is if our students are willing to stay in the city and invest in the city themselves. And they can only do that if there are good paying jobs available in Camden. Currently there aren’t many available, and we plan to change that.”- Khai Tran

Penji

The startup already hired 4 students from Camden and have plans to hire more as they grow in Camden. Things are definitely looking up for Camden NJ as the interests for startups are growing from surrounding cities. The Camden city has been struggling with bringing in new businesses for the past few decades and many efforts have been put forth to revitalize the city. Things may be different this time around if enough startup companies join Penji in Camden and invest in the city.

Melissa Le (office manager of Waterfront Lab, Camden’s very own co-working space) is optimistic that Camden will be revitalized this time around.

“We’re feeling good about Camden’s revitalization and we know it will be successful if enough key industries get involved. Having major companies such as American Water, Holtec, and Subaru is a great start, however we need more interests from startups and small businesses to make Camden’s growth sustainable.”

 

 

 

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Business

0 – 100 With Peter Hwang CEO of Bite App Inc.

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bite app inc.

0 – 100 With Peter Hwang CEO of Bite App Inc. Exclusive interviewed Peter Hwang, current CEO of Bite App Inc., a startup company based in Philadelphia that’s changing the way you discover your next meal.

“Bite is a mobile app that makes deciding what to eat easy by mitigating the time and energy required to evaluate a restaurant dish. It also provides a platform for users to share useful, concise reviews that help improve others’ dining experiences.”

 

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