Why 90% of Startups Fail

Updated: May 13

Launching a startup? You can now get a logo for $5 on Fiverr. Thing is, your new corporate identity is done in India, or the Philippines, and they have a ton of templates and just pop your company name in, and wham, bam, thank you underpaid foreign workers who can afford to live on $10 a day.

But really, you're starting a company, or trying to make it grow on a shoestring budget, even a gold-plated, VC-backed one, and the global workforce isn't your problem. And you're right. It's not, regardless of the tens of thousands of whining professional designers losing their careers. Your problem is effectively and efficiently launching your startup, intimately understanding your product, it's potential target markets, your competition, then constructing marketing material that brands you in the marketplace, and engages your targets to ACT—buy, try, subscribe.

And you can't get that paying $5 for a template corporate identity.

So, let's drill down to the truth. Nike's swish logo alone did not make their company known. And buying a $5 logo will not make your venture fail. What is likely to make your company fail is the Aim, Fire, Ready marketing approach most startups use, which includes going for the cheapest marketing solutions or doing no marketing at all, instead of investing the TIME and money it takes to implement the proven success of the traditional Ready, Aim, Fire, marketing method.

GET READY: Actualize your ideas into viable products/services. Find target market/s. Assess competition. Define differentiators for effective positioning. Establish profit models. Plan B/C/D—future horizontal and vertical products and markets.

'Internet Marketing' firms getting $20 per promo will not help you get ready to realize the greatest possible ROI.

TAKE AIM: Create company I.D., branding standards, websites, on and offline marketing material with visual and copy content that engages your target audience and motivates them to ACT.

$5 logos generally don't consider how the icon will transfer across all media. Nor do $5 logos help the company intimately understand its product/service, target markets, competition and potential future markets to help brand your startup to stand out among the hordes.

FIRE: Use company's new marketing tools and materials to implement a strategic launch, with consistent branding across all media to tightly-targeted markets.

And you won't be able to purchase the above for a few hundred dollars collectively. To launch a product or service or company effectively takes TIME. It's a Creative Director's job to intimately understand, or sometimes help define the companies offering/s, and what makes them different, then translate that knowledge into effective marketing, way beyond the identity they create. They provide multimedia branding, competitive positioning, visual and content marketing to motivate your target market to buy, or buy into your message/brand.

$50 a day labor does not know the methodologies of branding, nor do they care who your target market is.

Another truth: Taking the TIME and investing the money to launch right, though not guaranteed, will likely help your new product or startup succeed. But time is money, honey. No way around that.

Oh, and the idiom 'You get what you pay for,' is an idiom for a good reason. It, too, is the truth.

0 views0 comments

Recent Posts

See All