90% Of Start-up Fails In Their First Year Here Are The “TOP 5 Reasons”
1. Product failure: Another reason why most startups fail is because the company falls short of developing a product according to market needs. There’s a higher possibility that the very first product by a startup may need several revisions. In such cases, one also needs to be ready to detach from the product idea and revamp it.
2. Lack of market research: Lack of market research and customer data are some of the major reasons why many startups fail. Founders might soon face problems if there is little or no market at all for the product they build.
Before starting a new business, one needs to research well and create a product that the market will absorb. Surveys and feedback from target audience is one of the easiest ways to find out where and how your product will fit in the market.
3. Business Plan: Developing an interesting website or product isn’t enough for attracting your customers. One needs to realize that a business model basically fails due to lack of attention given to potential customers. Make sure you don’t completely depend on your product or service for customers. Create a business plan that can help you build a loyal consumer base.
4. Cash Supervision: It’s not everyone’s forte to understand how much money is needed for the smooth operation of a company. Many startups run out of cash due to spending too much on marketing with zero control.
5. Execution: A poor team management is one of the main causes for startups to fail. A wrong go-to-market strategy makes it difficult for startups to become successful. This further leads to poor execution.