Here are the top 8 reasons why most people fail
Crypto projects are popping up every day. But the vast majority of them fail within the first year. Here are the top eight killers for even the most promising and game-changing initiatives, according to Chris Esparza, CEO of Vault Finance.
1. Non-professionals starting businesses
It may seem strange, but most crypto projects fail not because the technology is not cutting edge, but because the people responsible are inexperienced. They may be good at coding or have brilliant ideas, but they don’t know how to run a business. It often results in poor management, unrealistic goals and insufficient funding. As a result, the project causes investors to lose their funds.
If entrepreneurs lack experience, do not understand business processes and do not have the discipline required to make a company successful, it will fail. Even the most innovative idea will stall if these components are missing.
2. Crypto projects and zero monetization
There are people outside the team who are very important to the business process – investors. They have witnessed many failed projects, so you need to present convincing arguments to persuade them.
Many crypto startups don’t win simply because they can’t demonstrate how to monetize their idea. Without a clear path to revenue, it is difficult to attract the attention and funding necessary to sustain a project. Additionally, many projects overestimate the utility of their token or coin.
Venture capitalists are unlikely to back a project if there is no clear long-term plan. You can’t promise an exact return, but you can at least show what you want to do with the money, what stages the project will go through, and so on.
3. No real use case – it must solve a problem
Most cryptocurrency projects lack a use case that can solve a real problem. This often leads to low adoption and, ultimately, project failure. Most new cryptocurrencies cannot be used for anything outside of the blockchain space.
So here’s an important tip: if your idea is futuristic, make it more grounded first. Find a way to incorporate it into at least one mainstream industry. Ideally, the solution should streamline offline processes, such as paperwork for government agencies.
4. Partner and team member incompetence
Understand who you work with and who you hire. Partners and employees can either help or hinder the project’s success. When the people behind the project make poor decisions regarding the selection of partners or team members, it leads to a lack of trust and transparency. It is not uncommon for projects to be started by a group of friends or acquaintances, and although this can go well in some cases, it often leads to problems down the road.
The Internet era has made it easy to conduct a thorough check, so don’t skip this step even if everyone around you is recommending this person or team. Don’t rush to inform them of all the project details. Start with a trial period to make sure they are reliable.
![Be[in]Krypto fourth birthday](https://s32659.pcdn.co/wp-content/uploads/2022/09/BeinCrypto-Fourth-Birthday-850x483.jpg.optimal.jpg)
5. Crypto projects and lack of revenue generation
Income generation is a central part of any business. Without a steady flow of money, a project will eventually die out.
A token sale is the most common and successful method of generating revenue for a crypto project. It can help you get the money you need to improve your project and market it. On the other hand, token sales are not without risks and challenges. If you’re not careful, you could end up diluting your stake in the project.
Partnerships are another way to generate income. You can receive a percentage of their profits if you find partners willing to invest in your project. However, this method is often unreliable and can take a long time to generate significant income.
The most important thing to remember is that you need to have a monetization strategy in place from the start. So before you start working on it, make sure you have a clear plan to make money. You’re just setting yourself up for failure if you don’t.
6. Crypto projects and lack of adaptability
It has happened throughout history: even the best things can become obsolete overnight. To stay on track, you should always be on the lookout for trends and be able to predict where the entire industry, or at least your sector, is headed.
Think about how your project solution can be changed or expanded. Learn from your more successful competitors and pay attention to what industry leaders are talking about, but don’t fall for the hype. Some fads don’t last long.
7. Inability to handle criticism
You will be criticized at some point, no matter what you do. You may arouse the regulator’s suspicions or annoy users; in either case, they will criticize you. Although it is impossible to predict future challenges, you can plan in advance what you will do to quickly solve the problem.
You can overcome objections by offering a holistic solution that addresses the objection and provides value beyond what the customer is currently receiving; use the objection to improve the product; and, finally, offer another solution that still provides value to the customer.
Haters can become loyal supporters if you show that you value audience feedback and are willing to learn from your mistakes.
8. Ineffective marketing
Last but not least, even the best solution will go unnoticed if you don’t invest in marketing.
Create a strong presence on popular websites and social media platforms. Another critical component is creating informative blog posts and other content that uses the right keywords and helps you rank high on the search engine results pages.
It takes time and effort to ensure that you are visible and that potential customers can find you. But if done right, marketing your business online can be a great way to reach a large number of people at a low cost.
Crypto projects: How to win
To win a game, you don’t always have to be the best. Sometimes it’s about having patience, being able to deal with problems and always getting better at what you do. Although the crypto market in 2022 is very crowded, it is still possible to become a trendsetter there.
About the author
Chris Esparza is the CEO and founder of Vault Finance, a decentralized, multi-purpose finance project that serves as a DEX, launchpad, wallet, crowdfunding platform and communication platform.
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