Why do most of the startups fail?
Every time a startup fails, An analysis or a summary report needs to be conducted by the Market specialists so as to know what didn’t work good. If you see hundreds of success stories, then you must go through the failures to learn from. Though there can be various factors resulting in the venture-failure.
Here are some major factors which might take your startup to ground :
1) Not a unique product
According to a research, a large number of startups fail because their products aren’t able to fulfill market needs. Startups succeed because they’re able to solve the problems which their customers are facing of, and if your product doesn’t offer a solution then the chances of it’s success are none.
2) Sloppy teamwork
There can be some internal factors also which results in the failure of a startup, when the management team falls apart, initial strategies fails and can’t commit to work long hours. The lack of motivation and ideology can lead to a venture-failure.
3) Running out of cash
Lack of cash is one of biggest reason of a venture-failure. There can be various factors like improper budgeting, improper time calculation for funding. etc. It’s just a matter of time that you’ll before you gets any transactions to attract investment.
Competition in the market is very high nowadays, competitors in your same field in the market will not give up easily, resulting in one’s success and others failure.
5) Weak business model
Customers will buy your products only, not your ideas and innovation, So your products must fulfill customer’s requirements. Having a startup isn’t a easy game to play, There can be situations that you’ll not get success in one go. Learning from your mistakes is the key factor you must have in order to get success.