13 Reasons Why Startups Fails
In this era of digital world many startup takes birth and many dies. Some run to become success and some perish in this competitive world. Now a day’s 8 out of 10 startups fail due to various reasons. Most of the new startups don’t even lasts for more than six months. I have seen many young entrepreneurs losing their confidence in short span of time. For this very reason I came up with this blog.
Today, I will tell 13 most critical reasons why a startup fails. While it might appear to involve good fortune, as a general rule that can be executed for numerous private ventures before they ever get off the ground.
Now, here is the golden list of 15 reasons why startup fails.
- Not prepared to face failure–
People say always be positive but if you are starting a business then you should also think negative. If you are not prepared to face your failure then you don’t have the right to run a business. The main reason behind the failure of startups is that they are not prepared to fail, as soon as they face failure they shut down their doors.
- Plugging into online business with no knowledge of the niche–
Before plunging in any field you should have complete knowledge of your field; many guys simply start their business without having appropriate knowledge of the field and tries too many different things to get started. Having half knowledge about the field is also very dangerous for your startup, because you try so many ideas and reach nowhere. This will lead to frustration, loss of time and money in trying out new things.
- Not self-disciplined-
The distance between dreams and reality is called discipline, until and unless you are not self disciplined, you can’t make your ways smooth. Google is not going to increase your sales and conversion; it’s your work which is going to pay you back.
- Stop learning
One who stops learning stops earning, you have to consistently learn some new thing and ideas to boost your business and try to make changes in your strategy according to the outer world.
- Lack of entrepreneurial skill-
Entrepreneurship is not an easy task; it takes out hell out of anybody. It requires additional set of skills to deal with your clients and lead a team. I short if your founder is inefficient and lacks to communicate his visions and ideologies to his team. Startup will shatter in no time; you must have the leadership qualities to lead your business to victory.
- Ineffective marketing–
For every product or business marketing plays a vital role in its success, but many startups fail to do proper marketing for them. They just waste their time in Facebook and Twitter submissions. They don’t have any idea about online marketing and SEO. They don’t know anything search engine marketing. In short, without proper marketing strategy your business will not be able to reach potential clients.
- Hiring inexperience team-
Business is not a one man show it is team effort and you have to select a good team. If the team is not professional or if it has lack of interest, then it will surely sink your ship. The team should be creative, innovative and it should come up with various ideas to grow your business. The biggest reason why 8 out of 10 startups fail is the lack of effective team.
- Lack of capital backup-
Don’t quit your job at once before starting your business, until and unless you have enough money for few months. You should keep good amount as backup for your startup.
- Lack of business mentor–
Everyone needs a mentor, on e should have a mentor who leads and guide you to right path. One should find a mentor with rich experience and support. He gives you financial support too.
- Underestimating the competitor:
Before entering the business one should be aware of their competitors. Do complete analysis of your competitor and his business plan and you have to consistently cross check his strategy and skills applied in his business.
- Lack of Targeted customers:
Before starting anything you should select or pick targeted customers, select your customers according to your niche and without wasting time on others useless strategies you should focus on that particular group of customers.
- Poor execution:
One of the main things that the poor execution of the plan, the strategy decided by the team should be executed in well planned manner. The planning is very important to make your work process smooth.
Numerous new business visionaries spend through their startup capital before their income is sure. This frequently happens in view of misguided judgments about how business works. In case you’re simply beginning, search out prepared veterans you can swing to for guidance before making enormous consumption.