Why 90% of the startups fail and how they can overcome this problem
Nowadays, starting your own business and surviving the growth phase is really hard due to the high competition of the market. There are various goods and services offered and it is almost impossible to come up with something that does not exist yet. Because of this overload of products and services offered by the giant and popular companies, young and small businesses find it hard to compete with them. There are many motivated entrepreneurs with innovative and unique ideas, that want to start their own businesses. However, 90% of them fail.
Startups fail for various reasons, such as no market need, wrong team, poor marketing and many more. One of the main reasons why startups find it hard to survive is the lack of money.
Most of the entrepreneurs start their businesses with personal savings, or they go to creditors and get loans with an enormously high interest rate. In many cases like this, personal savings are not enough for young companies to survive, or entrepreneurs have to get bigger loans and pay them back for years.
How can entrepreneurs face this challenge?
Almost all entrepreneurs have the same problem – lack of money to get their business started or to develop a new product. No matter what a company does or what products it offers, capital is always needed. Entrepreneurs are good for the economy and employment, and that is why the government supports innovative startups and helps them grow.
Using subsidies to establish a new product is a great way for entrepreneurs to overcome the financial problems that they have in this early stage of development. However, getting subsidies is not easy. It is a very long and competitive process, as many innovative companies can compete for one subsidy program.
For this reason, it is very important that you find the best subsidy program for your project and the best subsidy consultant that can help you obtain the grant. Together with your subsidy consultant, you have to make sure that you meet all the requirements for the subsidy program of your choice. All of the requirements and questions within the grant request will be challenging to answer. This is how the granting establishments keep down the number of applicants and ensure that the grants go to their required types of entrepreneurs.
Before you start looking for a grant, you need a strong foundation for your business idea, structure and very strong arguments for its potential success. One of the main requirements for subsidy application is that you have a strong business plan. You have to decide what business model you will use, what marketing strategies you need to succeed, what are your key activities, products, organizational structure and management, financial strategies, and a projection for when you think your business will start to make a profit. Another important aspect is that you need to have a plan on how the subsidy money will be allocated for your project.
If you are an entrepreneur and you need funding to establish your company, or to develop a new product, you can use the new platform MK – The Subsidy Community. This is not a traditional consultancy company, but a platform with IT services and they select the best consultants to help organizations with acquiring subsidies.
Through this platform, you will have direct contact with subsidy consultants from all over Europe and receive feedback on your business idea. Moreover, you can discover all the subsidy programs available in your country and find the best one for your business. The consultants of The Subsidy Community will take care of your grant application and help you achieve your goal!