10 Common But Ignored Reasons Why Most Of The Startups Fail
- Market doesn’t need it:
A study shows that out of the failed startups, 42% failed because of no market need for their product/service.
Most people don’t do enough market research before launching their startup.
They just launch it because it’s hot and trending in the market, or their ‘gut’ feeling tells them to do so.
- Lack of proper structuring:
However good your idea is, if you haven’t thoroughly planned out in aspects like who your ideal customer is, how much money you plan to spend MoM and what your short and long-term goals are, you’ll struggle more and more as your company grows.
Creating a business plan should be the first thing you do after deciding your product/service.
If you neglect this, then get ready to successfully fail.
- Hiring the wrong people:
Your team members are the core of your company. If you hire the wrong people, then it’s not gonna work.
Having people who are equally passionate can take your company to the next level.(Don’t forget to compensate them at the same level)
- No Feedback loop:
A startup isn’t just about launching your product/service and generating money from it. It’s much more than that.
If you want to make your company big, you need to focus on your customers. Take their feedback and try to work accordingly.
Remember that: “If your customer is happy, he/she will do free marketing for you.”
Think this way. Think long-term. Don’t just run after making short-term profits.
- Money management:
While it’s worthwhile to spend money where it counts, it can be very easy to get carried away and spend too much.
Especially in the beginning of your company’s stage, you’ll want to throw money at new problems that come your way.
But it’s important to budget correctly; otherwise you may spend more money than you have, and not have enough for the future.
- Irrelevant marketing/positioning:
How many startups have you seen doing great marketing? Very few.
CRED is one of those startups whose marketing tactics are appreciable.
Making Rahul Dravid “Indranagar’s Gunda” / forming a band boy of the 90s cricketers are some eg.
Marketing is the way you create awareness/position your brand. If you don’t do it properly, you won’t reach your potential customers.
- Lack of passion:
Many people come up with great ideas but they do not sustain in the business ecosystem due to lack of passion.
You will lose passion if either you’re not interested in the problem anymore or you’ve found something better than that.
- Not upgrading yourself:
Most of the failed startup members don’t upgrade themselves with time.
They keep using the same old tactics, tools or methods from which they were getting results.
- Lack of digital presence:
Nowadays, it’s necessary for every startup to come up online and have their presence on different platforms.
Being present on different platforms helps in building credibility and authenticity.
Digital marketing is one of the best ways to market your startup. It’s way cheaper than TV ads and has a lot of flexibility in showing your ad only to your target audience.
- Lack of innovation:
Forget what competition is doing, if you’re not constantly innovating, you’ll be out of the game soon.
This is literally the MOST important reason of all & should be focused upon at priority.