10 Reasons Why startups fail

They lack

The Spanish say says that if an entrepreneur is passionate about what he does, he will not succeed. Well, it is estimated that 9% fail due to lack of passion. Here the first to collapse are those most interested in generating quick profits with your venture without taking an indepth interest in it.

Bad marketing management

Startups may have a good idea and a better business plan, but if they fail to massify, that is worth nothing. This is how 14% of entrepreneurs say that poor marketing management led them to fail.
They run out of money.

Obviously, economic resources are vital for the development of a new company. According to the report, 29% of respondents say their company failed because it ran out of funds. Keep in mind that companies have problems in this area both when they are leaving and have no money, as when they receive capital injections that they spend without control.

They have a bad relationship between cost and price

Many companies develop excellent products, but their production cost is very high. That means that they lose money in the processor that they transfer value to consumers and that they are not willing to pay. 18% said that this led them not to succeed.
They have a terrible location.

In retail, there is a phrase that says «location, location, and locationWell, for the startups, this concept can be applied correctly, since 9% of the entrepreneurs assured that they could not get their business off the ground because they were very far from their final market. Also, some said that having teams working scattered also affected them.

They do not have the right equipment.

23% of those surveyed by CB Insights said that a team with little experience, lack of motivation, and without an aligned vision led to failure.

The team and investors disconnect.

They say that antagonizing a cofounder is fatal to the future of a venture. However, what seems to be even more problematic is having discrepancies with investors. 13% said that led to failure.

There is no need for the market.

According to the study, 42% of entrepreneurs blamed this factor for the failure of their business. In that sense, it is critical to understand that startups are successful when they can solve a real user problem.

Things started to go wrong

In this sector, the pivot is the ability to emerge companies to reinvent themselves when their business is not going well. However, it is an exercise that can be dangerous, since 10% said that a lousy pivot ended up making them disappear.

They have no business model

17% of respondents said they failed because they were not able to give a transparent business model to the idea they had. Therefore, they never became profitable.



Leave a Reply

Your email address will not be published. Required fields are marked *