It is said that 95% of all startups fail before they mature as successful businesses. Quite certainly, it is not something you want for your own startup. Here are some mistakes Travel startups can avoid making to ensure a better life-cycle for their businesses.
1. Not being financially stable at initial stages.
In many cases, companies fail to take off, let alone flourish, simply because of a lack of capital. You cannot start a business without being financially solvent and financially prepared to deal with the number of fallbacks and loses the firm may suffer in its initial phases. Especially when you are trying to sustain in a market that already has some competitors who have been holding the market long before you barged in. It is important to not fade away before you can grab attention. And this, will surely take time, patience and some good investments.
2. Selecting the right target audience.
It is important to know your target audience and the competitors who are targeting the same segment of audiences. A family with 3 children, below 18 each, would not plan a holiday trip to Las Vegas. It will be a waste of your infant firm’s resources to spend your money on trying to get attention from this demographic group. Identifying the actual customers whom you will serve helps you plan ahead accordingly as to how your company will design services, offers or experiences for these users.
3. Failing at market positioning of the brand.
On many occasions, your company may be offering a series of offers and/or benefits similar to that of other brands in the field. In such cases, it is essential to show how your company stands out by effective market positioning. A thorough research of your competitors and an in-depth analysis of why your brand would be deemed attractive will help you make a more strategic approach for your target demographic, rendering a unique picture of your company proposition which you can present to your target audience.
4. Failing in making a connection.
As important as it is to market your service, it is equally important to do it correctly and effectively. Your target audience should be able to relate to what you are trying to sell and why it is something they need. For example: A newly-wed couple will feel like they need a vacation in the Bahamas even if they hadn’t thought of it themselves. But efficiently correlating your scenarios with the lives of your customers will make you a better choice than others.
5. Not adapting to changes in market demands.
In many cases when a startups buds from a fantastic idea, the founders often try to make it the company’s identity by showing reluctance to changes in marketing strategies or product development concepts. It is necessary for any firm to conform to what its customer base expects from it for it to be of preference over others. One of the oldest and simplest rule applies best in this case, “The customer is always right.” If a large chunk of your customer base wants to book flight tickets to China, make a special offer on your China trips even if it not what you specialize in. For a startup, it is crucial to build a strong customer base at earlier stages to build trust upon your company.
6. Building the right team.
You know you are good with your innovative ideas and vast knowledge on what you want to do with your startup. But hardly anything can be accomplished by singular effort. It is of utmost importance to make sure you have people in your group who are competent, hard-working and most importantly, can share a similar passion, if not for what you are trying to build. Be professional and work with professional people. It is always a mistake to be working with friends as the impersonal nature of relationship often results in poor quality outcomes for your firm.
These were a few tips that will hopefully carry you forth to your adventures of travel startups!