Launching a company has never been easier than it is today. Thanks to the development of the Internet during the last 10 years, many new industries have flourished, allowing businessmen to conduct business online. However, just because launching a business is easy, it doesn’t mean that maintaining and growing one is any easier. Every company struggles to get through its infant days, and many digital companies fail because their leaders don’t recognize the pitfalls of the realm of digital entrepreneurship. According to Fundera, about 80% of businesses with employees will survive their first year, while just a half of businesses will make it to the five-year mark. Today, if you want to successfully run a company, you need to know how important your digital strategy actually is. As some leaders still can’t manage to build successful digital projects and can’t understand why, we provide you with a list of the most common reasons why digital businesses fail in their first year of doing business.
1. Failing to plan
This fact is always true. If you didn’t put any time into planning your digital projects, you may have set yourself up for failure. Even if you managed to just run with it without planning, the lack of organizational skills may sabotage you once you lay your hands on a larger, more serious project. This can be a huge reputation destroyer, and reputation is something that can’t be rebuilt that easily. Make sure to plan for obstacles, delays, and every potential situation that can set you back from finishing your projects.
2. Not going mobile
Every web development project needs to consider making a mobile platform. Many entrepreneurs still tend to make it an afterthought, disregarding mobile by making it a low priority in their digital projects. It is important to include a mobile option, both for you and your clients.
3. Focusing on money instead of details
Even if it seems like an easy factor to avoid, many young entrepreneurs still manage to get entangled in it. If you leave the details for later and frequently discuss the cash value of the project, you are risking to fail. In order to avoid going over the budget and meet deadlines is understanding what each specific project entails.
4. Not insuring your business
Because of the excitement that their business idea and its development bring, many entrepreneurs tend to forget about risks and liabilities running a business brings. Besides successfully launching a startup and developing a quality product, factors such insurance are there to make sure your business can survive its infancy and maintain its success in the following years. If your company owns a property (e.g. company offices and warehouses), you should definitely obtain property insurance. Workers’ compensation insurance serves as a protection for your employees in case they get injured on the job. On the other hand, a liability insurance protects you if your workers, services or products supposedly caused property damage or injury to consumers. Insurance companies, like Youi NZ, offer liability insurance for businesses, which protects you from lawsuits and third-party claims against you, and covers the expenses for the damage done.
5. Try to save the client money by decreasing the testing phase
In an effort to save money and time, your clients may ask you to run a shorter product/service testing phases. However, cutting back on product testing is the wrong way to do it, because if an installed product fails because of the lack of testing, more time and money will be spent on solving the issue. Every digital project has its fair share of bugs, which is why a proper testing phase is one of the most important aspects of creating a quality, bug-free digital project.
6. Showing the project to your client after it’s completed
Digital project teams like to focus on revealing a finished project to their clients, and that way assure them that they’ve received a tested and revised bug-free product. However, this may not be very helpful. The good side of providing your client with early access to your project is letting them make changes while the project is still in development. It’s much more time-consuming and difficult to make changes on a finished product, because it will require more debugging and more testing. For leading successful and effective digital projects, you need to be good at leadership as well as a digital developing. Your team members need to work together as a unit that doesn’t compromise on delivering a quality product and follows best practice processes. Insure your company, focus on project details, conduct the right marketing strategy, and collaborate with your clients in order to keep your digital business alive and growing.