Mitigate the Risk of Business Failure With These 4 Strategies

You do not need a huge collection; you need a pain point and a solution. According to research from CBInsights, startups fail most often due to two reasons: failure to verify market needs and not spending money wisely.

It can be easy to get caught up in size and scale, but consumers are looking for quality authenticity and a compelling brand story. Focus on these things first. A quick way to run your brand into the ground is sprinting too fast out of the gate with no clear direction. Find your place in the market and develop one really good product first, and the rest will follow.

Make sure your manufacturer has capabilities that fit your needs, from the size of the facility to quality and speed. You do not want your initial brand launch to turn out the way Jaclyn Cosmetics did in 2019 when its highly anticipated makeup products were found filled with mold, hair and bubbles.

The reason for this error? The fibers from the cleaning towels were left in a big tub where the lipsticks were mixed. Although this was not the fault of the brand, it took the hit and its reputation never recovered.

Gathering feedback on the performance of a product does not have to be expensive, nor does it have to be a huge undertaking. To gauge consumer interest, test your product on the market. This could look like doing a soft product launch on your website, or utilizing more general third-party selling platforms. Rather than purchasing 500 units, put 50 of each SKU and measure product performance based on key KPIs.

Once your product is out, pay close attention to customer reviews. Criticism is not necessarily fun but take it to heart and respond accordingly.