Got no clients. No investors. Ran out of money. Total failure. This is a nightmare of every startuper. Fortunately, though, all this is absolutely avoidable. Just take into account a few important things.
According to Neil Patel’s statement at Forbes 90% of startups fail. There is a number of reasons for that, including founder’s incompetence, bad product, no market for the product etc. Choosing the wrong industry for a startup is on the list as well.
Earlier we discussed the most promising industries where your startup is most likely to succeed. Now it’s time to uncover the worst industries to start a business in, which all new entrepreneurs should stay away from. At least because investors do.
Just think of Google, Bing, Yahoo!, DuckDuckGo, Baidu, Yandex. And this is only the tip of the iceberg. Do you really feel yourself as a competitor of these giants?
If the answer is yes, you need to have a couple of things behind your belt to succeed:
1. A genius idea of a new genius search engine. It can be dedicated to some specific areas, or capable of delivering better results for all queries. Anyway this has to be a very powerful and smart machine capable of exploring billions of pages on the Internet.
2. A heap of money. You’ll have to conduct a thorough research, hire a team of high-paid professionals or an outsourcing firm for creating an intelligent search algorithm and software development. Then you need a killer marketing to get your product known and convince people to use it.
Same stuff. In the world of Facebook, Twitter, Instagram, YouTube and other Google Pluses, do you think anyone is waiting for another social network?
Well, if it is something really unique there are some chances to succeed. But generally there is a much better decision to launch a service or an app to complement a popular social network. If your product is worthy and you are good at marketing, you may catch an eye of some existing social giants. Think of Periscope, which had been acquired by Twitter and had attracted 10 million users in the first 4 months.
While thinking about opening a restaurant you might be full of hopes and optimism. Yes, everyone eats, everyone loves to eat delicious food in cool comfortable places. Then you start pondering about an original idea for your future restaurant. But here is a slap on your cheek: 1 of 2 new restaurants fails during the first year, and approximately 80 percent shut down within 5 years.
Without going into details, let’s just list the main reasons:
1. Bad location. Low populated area, not enough parking space, too much competitors nearby.
2. Low start-up capital and insufficient promotion.
3. Poor customer experience. This includes bad food, interior, service, inventory.
If you are still willing to link your life with food business, go Food Tech. This is a very promising industry with a really big market and wide opportunities. You can launch
- food ordering and delivery platform
- meal preparation services with own kitchen and delivery, but without restaurants (saves money and spares from a whole bunch of problems)
- calorie counter and food ingredient mobile app
- restaurant discovery and review platform.
And many more things. Just do some research, find out the market needs and invent your own killer web solution or a mobile app.
A dying breed. Free Wi-Fi is available in almost all establishments, including restaurants and ordinary cafes. Besides, now everyone has a high-speed mobile Internet connection. According to The Verge 98% of population of the USA has access to 4G LTE network. In Europe, and the UK in particular, the rate is lower – something like 70 percent, but still there is 3G everywhere with a speed enough for browsing and watching video online.
Internet cafes can still generate good profit in third world countries, but in places where mobile Internet has high penetration rate, this business can hardly be called feasible, and definitely won’t attract investors’ attention.
Yes, this is one of the worst industries to start a business in 2016. Let’s not talk about wars and terrorist attacks which have a huge impact on the industry in general.
There are few issues which cause ordinary travel companies to suffer from customer outflow:
1. Airbnb, Booking.com and alike. These services make it a lot easier and cheaper for tourists to plan trips, find and book accommodation.
2. Availability of airline tickets. There is a bulk of websites (Expedia, Kayak, Orbitz) where you can buy tickets online, cheaper, for any direction.
3. Flying on a plane is no longer a preference. Many prefer to travel by car – their own or find companion drivers via services like Blablacar. It is cheaper, convenient and often gives more impressions.
Suddenly, it appears that everything you need for traveling can be found and bought online, so there are fewer and fewer reasons for launching an ordinary travel agency. You’d better think of rolling out a useful website or mobile app for travelers.
Just remember – in order to reach maximum results, commission your software product creation to a professional custom web or iOS / Android app development company.