Startups Fail

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Top 10 Reasons, Why Startups Fail

Millions of startups being initiated every year but only tens of those survive successfully in the marketplace. Every startup entrepreneur thinks that he/she is going to be the next billionaire, but the fact is that 90% of them fail to survive. Romantic ideas, engaging presentations, hard work, research, preparation, and perfect execution, various things are there that impart in a successful business. Most of the time’s startup failure due to the involvement of multiple factors such as:

Lack of product/market fit

Selection of wrong products is one of the significant reasons behind any startup failure. The reasons might be different, whether it is due to the putting up of wrong strategies or is about the improper execution. But the production of faulty products may take your business into ditches.

Selection of the wrong team

To make any business successful, a good management team is there that work smartly. But a weak management team can make mistakes in multiple areas.

Pricing Issues

Figuring out the pricing module is one of the most challenges that startup businesses usually face. Pricing is a compromising act where one wants to make maximum profits but fails in retaining the lower margins. For making any business profitable, one need to add all the operational costs here that sometimes go out of the way.

Ineffective marketing

No one will recognize you, if you won’t introduce yourself to them. Most of the startup entrepreneurs keep focusing on the products only and doesn’t care much about its marketing, and that is the point they fail in continuing their business.

Poor timing

Every product needed to be launched at perfect timing in the marketplace so that to raise its sales over time. Most of the startups get failed as it might be not the ideal timing to launch that particular product in the market.

Legal challenges

Value of customer privacy and data security is one of the top things that every business needs to be taken care of. Most of the startup businesses face issues due to the exposure of various legal challenges. So it would be more helpful for an entrepreneur to get aware about the laws of business related to that particular area so that they could remain well aware of it.

Bad debts

We all need some credit to make our business on track especially in the starting phase, but this credit sometimes further leads them to face the worse conditions in the future. The situation becomes even worse when the client fails to avoid further credit requests and get mischievous or get indulged in the financial crunch.

Lack of Cash

A large number of startups fail every year only due to the reason that they fell short of cash at some particular place. Unavailability of sufficient funds to cover up the operational costs may fall any running business into ditches.

Disharmony among team/investors

Team members and investors all are humans and any of your behavior can create a higher level of discord among them. Self-Centered thinking in any business may lead further to the various conflicts which may finally damage the backbone of any business.

Customer ignorance

Ignorance of customers at any level is one of the most substantial reasons behind the failure of any business venture. Using tunnel vision and ignorance of customer’s feedback turn up as most fatal flaws for any startup.


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