Why startups fail?
Many startups fail because they actually have no idea of where they went wrong .
So I am describing some of the major reasons on why startups fail:-
- Lack of ownership:- Its not money or bad idea which leads to failure of the venture but ventures fail because of lack of ownership. As all the founders of the company may have their own established businesses so they start lacking interest.
- Market not ready for Innovation:-Most of the startups are trying to change the way businesses are done but they are bound to failure if their markets are not ready for innovation.
- The Copycat Approach:- If you build a clone hoping your venture will see the same success as the original venture then you fail.
- The Unplanned Approach:-If you rely a lot on hard work and instincts to take the business to the next level then you ere bound to failure. It is best to streamline you process and plan accordingly.
- Money troubles:-If you Mix your personal finances with business money then you are bound to troubles. Do not plan your business finances in a planned way, as they are prone to changes.
- Bad customer service:-When startups forget they are there because of customers. They are not there because of themselves. They start digging their own grave. Arrogance leads to them getting blinded to customer’s woes and bad service does not need any publicity.
- Staff dissatisfaction:- The day your trusted lieutenants decide to march against you is the day your army loses. It is one of a known reason for the closure of businesses in the manufacturing sector.
- Partner troubles:- When the partner at each other’s throats for simplest of reasons, you know the new business/startup is just around the corner from shutting shop. This is why you should understand advantages and disadvantages of partnership business before deciding to partner with someone.
- Comfort zone issues:- Many startups fail because they fail to realise the need to move out of comfort zone and adopt new strategies and innovative technologies.
- Poor Marketing:- The best of products suck when marketed improperly. While the worst of products sell when they are packaged smartly and sold efficiently. Such is the magic of good marketing. Businesses fail when they forget marketing is an important part of the business.