- 50% of start-ups stopped operations in the second year.
- In towns, most start-ups would lose approximately RM600,000 or more.
- The costs include salaries, rentals and renovations.
- What are the reasons for these failures?
- Firstly, the products they sold has no competitive advantage.
- They should invest money and time on product development.
- Product should include tangible and intangible benefits. Packaging and labeling are important. So are the after sale services.
- The pricing muts be right, taking into account prices of the competitors.
- If you cannot beat your competitors on pricing, you need to consider branding.
- The customers remembers your quality and do not mind in paying slightly more.
- Promotion must be consistent and effective.