startup

Reasons Why Startups Fail

Failure is a part of Startups. Failure in startups is a learning process. But still no one plan and mentally prepare for failure. Each startup emerges with the dreams of the business owner and has a sentimental attachment to it. No matter how hard we appreciate the efforts and embrace the failure it’s never expected to happen.


Each startup business owner initiates the process with proper planning and market analysis. The failure is of course never intentional but mistakes or the fate which makes it so. Here are a few reasons why startups couldn’t establish their roots are:

1. Market Problems

  • The biggest reason for the startup failure is that there is no demand for the product. Maybe the market was not ready for the product or they have other better options/products already available. Creating a product which fits and fulfills market needs makes it successful.
  • Timing to launch and plan a startup does matter. Neither run ahead of the market needs and updates nor stay behind in new startup ideas. If you are launching a new idea which the market has zero knowledge about. The acceptability takes time before availing the service.
  • The startup target audience is too less. The audience or the end user should be large enough to make it successful.

2. Product Problems

  • The price of the product is too high for the targeted audience. At times in order to attract the consumers the price is kept too low to generate the revenue. In either case, it will lead to being a failure.
  • The quality of the product is not up to the mark. The reason could be that the team does not have enough knowledge about the industry.
  • The product is not turned out to be what it was planned. It may be the execution issues, planning or production team error. The initial product can’t be perfect it does have flaws. By revisions, the product would be perfect for the market needs.
  • It also happens that after several revisions, the product still doesn’t meet the ideas how it was supposed to be. It that case, it’s a clear failure with fewer recovery chances.

3. Management Problems

  • The mistakes of management team start from the idea analysis. The market’s needs and strategy building. The validation of the idea according to public demand is a crucial step.
  • The risk factor analysis is the responsibility of the management team. The Risk to the failure, the demand of the product in the market and preparing a plan B in case of not getting the required response are the major steps before the execution.
  • The second mistake at the management side could be the execution of the idea. The product is not built carefully. Even minor carelessness or mismanagement can ruin the entire flow of the work and hence the execution got failed.

4. Marketing/Advertising Problems

  • You can build the best product ever, but if no one knows about its existence? Marketing is as important as the product itself for the business to be successful. A smart marketing strategy can give your startup a boost initially.
  • An average product with smart marketing may generate some revenue for you. But a best product with poor marketing will cost you a great loss as well as your startup a big failure.
  • While crafting the marketing strategy, it’s important to know first where your target audience exists. If your product is for older people you don’t need to invest much in social media. You can focus on newspaper and spreading the word by brochure to reach the stay at home people.
  • While targeting the younger ones, digital marketing holds first priority. Marketing can never be ignored or placed as a low priority.

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