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In a competitive market, the success of a startup is dependent on luck! Successful business definitely suffers challenges too. One should not start any business without any deep research. Whether the business is small or large, one must take all the necessary measures before initiating any business. Starting a new themed business is between a rock and a hard place. Either you are financially strong enough or you have a large network for making it deal with all challenges you may face long ahead. Most startups fail and the reasons are sometimes your own faults. There are other reasons too which include market incompetence, poor marketing, and others discussed briefly in later points. If you are going to invest in a startup or thinking to start your own small business, read this article so you may prepare yourself for future outcomes. Top twenty reasons for startup failure are mentioned below, be prepared yourself for weathering the storm…
1- You are not Promoting it Enough
The very first thought that comes to mind is the promotion of the startup. Either you are thinking promotion is not necessary or you have to advertise it but not enough. People may have no clue of your startup, what it is about?
2- You Haven’t Struggled For It
One definite reason could be fruitless attempts, you have not struggled for your startup success. You lost your focus in between. You are only thinking about problems and not coming up with practical solutions.
3- The Cash System is Collapsing
The cash system of your startup is on the verge of collapse. You might run out of cash and it may lead to problems among employed workers.
4- No Profit is Gained
Your startup is not making any profit and pressure from other investors is making you stressed for not reaching your estimated profit.
5- The Market Value of the Startup is Getting Down
One of the main reasons could be the market value of your startup, which is getting down with each passing day. Maybe the services you provide are no longer being demanded in the market..
6- You Are Not Financing It
Finance is the most crucial factor in the success and failure of any business. First, you have to finance your startup sufficiently and if it is about to fail, again you need to finance it to keep it standing on its feet. You are not financing your startup to make it flourish in the market.
7- The Staff Maybe Irresponsible Your hired staff is not competent; they are not working as a team or not putting efforts to lead the progress.
8- You are Not Coming up With Innovative Ideas
As an investor or owner, it is up to you how you lead your team, what innovative ideas you come up with, maybe you are lacking new ideas of promoting your business.
9- Customer Satisfaction is Being Ignored
Businesses work in the market due to its customers, if you are not satisfying customers with quality work, you are losing your customer. No customers in the market mean, there is no need for that business.
10- You Didn’t Follow an Approved Business Model
Before starting your business you didn’t dig deep, you didn’t realize the market need of your startup, what necessary step needs to be taken is not followed by you or by your working staff.
11- Competitors Don’t Want to See Your Startup Keep Running
Now, this is the most controversial reason for your startup failure. The competitors in the business world may appear with a more progressive idea and putting a lot more energy and effort to make it prosperous.
12- Management of Startup is Poor
You are not taking notice and control of management. The management may be poor and there is discord among you and your working staff on certain points.
13- Taking a Loan for Finance isn’t Helping You
A clear sign of startup failure is when taking loans for financing your business activities is not helping you lifting the business values. And you are in bad debt.
14- Customers are Not Happy with The Services
Customers are continuously being ignored, their complaints are taking into account and they are unhappy with the service of your team. Your team is not cooperating with customers.
15- Capital is Not Being Raised
The startup is not able to raise capital. A prosperous business raises capital as more and more people find ways for investment.
16- Your Startup is Not Sustainable The business needs to be sustainable. If there are fewer chances of sustainability, you are going to have
a hard time…
17- The Products are Not Making Potential Customers
The products or services you are providing are not making potential customers.
18- No Solution for Problems/Feedbacks
You are not solving problems your startup is facing. People are giving you feedback about your business and you are not working on those feedbacks.
19- The Location of Your Startup is Not Suitable
One reason for failure in the startup is the location of your services. Maybe the area where you are working is not attracting customers or there is no demand for your services in that area. Maybe geographically you are not expanding with your provided services.
20- You have No Plan to Cope Burnout
Dealing with personal and professional life make you stressful, being tired all the time may lead to burnouts. If you don’t cope with burnout efficiently, you may face failure in your startup.
Don’t lose your focus on your startup, challenges are part of life and without adequate experience and knowledge of business ups and downs, the survival with new ideas is difficult but not impossible. You need to work on solutions before the business is completely failed. Hard-working is the key to success; work on the innovative ideas, what improvements you should bring into the startup to make it prosperous.