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3 Strategic Mistakes that kill a startup

3 Strategic Mistakes that kill a startup

Strategic mistakes of Startup firms greatly contribute to their failure. It has been found that, along with a bad idea & un-doable business model, self killing strategies are also greatly liable for death of Startup business at the beginning. Lets check some of them:

Competing with price: You cannot make money by selling products at lower price than your costs. To enter into market many start-up firms start with a low price strategy that is; they sell products at a lower rate than their competitors even sometimes below their production costs. Delivering low price products means losing money in a continuous basis. This strategy derives from a mistaken assumption that, once a product enter into market with a low price and get customers acceptance, it can charge a higher price later and make profit. But, the strategy has proved wrong in many cases.

Rigid system & model: Small firms maintain lots of system. System kills innovation. Without innovation survival is just impossible in today's market. There is no golden rule of doing business. Rather seek to find better ways.

Founders always do not make good CEOs: Most of startup Entrepreneurs just want to be CEO of their own firms. But they never think whether they are capable to do that or not. But the truth is that, founders  always do not make good CEOs. So, do not be stubborn. Just think and do what is good for your firm.

Mohammad Ruhul Kader is a Dhaka-based entrepreneur and writer. He founded Future Startup, a digital publication covering the startup and technology scene in Dhaka with an ambition to transform Bangladesh through entrepreneurship and innovation. He writes about internet business, strategy, technology, and society. He is the author of Rethinking Failure. His writings have been published in almost all major national dailies in Bangladesh including DT, FE, etc. Prior to FS, he worked for a local conglomerate where he helped start a social enterprise. Ruhul is a 2022 winner of Emergent Ventures, a fellowship and grant program from the Mercatus Center at George Mason University. He can be reached at ruhul@futurestartup.com

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