We have known that there is a growing trend of creating your own business rather than getting a job. This is because the startup culture is on a boom. Most of the younger generation have the ambition to create a startup after graduation with an idea. Now, the idea of creating a startup and running your own business is great but only when you have the right skills and knowledge for it.
You must have seen various incidents where a startup fails to achieve even 10% of what they were planning to achieve. Therefore, we must have come across the term that this “startup has failed”. Therefore, we are now going to tell you about the 10 reasons why a startup fails.
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Recently, CB Insights analyzed 101 startups and identified the common reasons for the failure of a startup. First of all, you need to analyze that you have a potential market for your product/solution or not. If the product is good but the market is not there then there is a major chance that your product will fail due to zero revenue.
Also, the second reason for the failure of a startup is running out of resources because you are not going to want to invest infinite money for your product. The third reason is that you are not working with the right people who share the same knowledge and passion as you in the product.
Other than that, your startup might fail as one of your competitors outmatches you and therefore, takes away the market share from you. The pricing of your product is a major factor in this as well. If you are pricing your product way above your competitors with similar offerings than your product is bound to fail.
Other reasons for the failure of a startup include lack of user-friendliness, lack of a proper business plan, failure to market a product properly or if your marketing plan fails. Lastly, the failure of a startup can also be due to the failure of taking customer feedback and releasing the product at a wrong time. Timing is the key in a release and if you release the product too early or too late then it could fall flat.