We all want to become financially independent and become our own boss. That is why many of us make up their mind to quit their jobs and start their own business. This feels quite exciting and you are raring with confidence to fulfil your dreams and goals. But, did you know that a very high percentage of start-ups fail.
The reality is that there are a lot of start-ups here in Perth that fails. Most of the time, having a great idea is not enough – it does not guarantee that you’ll become the next big thing in the field of entrepreneurship.
According to recent studies, the number of small businesses and start-ups increased by 12% from last financial year. There are a few reasons by start-ups fail because business start-ups are always accompanied with risks. However, new business owners should not be discouraged as starting a new business also provides opportunities.
Before starting your new business, you first need to think of a great business idea and niche to work in. Finding a niche that you are interested in as well as big enough to keep your interest for some time to come is a highly important factor. Your growth could be constricted and ultimately give rise to boredom and failure if the niche is too small.
Another reason why Perth start-ups fail is due to increased competition. Nowadays, almost everyone wants to get into the world of entrepreneurship. This is the reason why the business community becomes too crowded and competition becomes tougher. So without enough marketing efforts, knowledge on the industry, and lack of branding strategies, your startup businesses are more likely to fail.
During tough economic situations, start-ups experience are the most affective as they lack finances and experience. According to an article published by WA Today, a total of 250,242 entities were deregistered from the Australian Securities and Investments Commission by June 30.