Why startup fails: know here (Possible Reasons)


A major reason is most companies fail to reason, they fail to develop a product and they meet and a market needs .some entrepreneurs sincerely believe they will come up with a great idea and customers will immediately beg for it fork over their money. In the corporate world, the bad business decision led to be this startups failure.

Lack of market interest :

Unfortunately, most of the entrepreneurs miss one important aspect in the earlier aspect of product development. They are not clear about the product aim who the building is the product for what problem it should solve and what is might be able to achieve in the market. For example lack of market demand. The product doesn’t solve a problem for enough people.

Poor management team:

They are usually poor at execution, which leads to issue with the product not getting built correctly or on time the go-to-market execution will be poorly implemented.

They are often weak in strategy and product development but not according to a market so the reason for that product no one wants to buy they failed to do enough the validity of the ideas before developing the product .this will be poorly thoughts through going to the markets.

Lack of capital :

Many startups run into when they have insufficient funds to full fill their problems resulting in a short runway. An opposite scenario can be also equally possible, Where a startup receives too much funding and misallocates the cash or spend it too quickly.

Lack of people :

In the organization, startups fail to other reasons for is lack of people having in the organization. Needless to say, are all the founders eager to hire the best specialist. Hiring to locally to easy and convenient but unfortunately, the local talent pool is usually limited. Startup founders should be ready for the fact that not all specialists want to relocate for a job.

Price issue :

In the other very big issues is the price, and figure out the how a price is always a challenge, approx 18-20 % it was also a reason they fail for its constant compromising act between pricing high enough to maintain healthy margins and cover operating costs, while also needing to price low enough to attract customer.

Ignore the customer need :

Approx of the business failed they are not full fill a customer need Keep an eye on the trending value of your customer .Find out if they still love your products, Businesses that fail lose touch with their customers.

Focus on your customer:

Your customer keeps in your business and put you out of business too, If you listen to them you have to improve your products and service. If you ignore it they fire you. The consumer did not disappear, they go to your competitor reach out to your customers ask them a question they get like what you like or dislike, and she/he giving negative feedback no problem welcome it and improve the negative things.


In any starts up face all these problems they all strategy will help you to in a new startup for the business. If you start the new business follow this strategy work on it.


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