#whystartupsfail

[ratishpandey]

Why startups fail? Top reasons and lessons learned

Lack of Product Market Fit Indian Startups had a stellar year in 2021, setting several new records -the number of startups acquiring unicorn status, the number of new startups launched, and the record funding received by startups.

Now more than ever, Indian startup founders are aspiring the unicorn status, that is, a $1 billion valuation.

All the good news could make one forget the struggle it takes to launch a successful startup. It is no surprise that 90% of all startups fail within five years of being founded.

Why startups fail?

What should the founders do to mitigate failure?

Let us look at five factors that spell doom for startups and how the founders can address the situation fitfully.

Failing to Raise New Capital

Lack of Product Market Fit

Competitive Landscape

Pricing/Cost Challenges

Product Launch Timing

Discover the common reasons in detail why startups fail & how to avoid them. Gain insights from industry experts to help your startup succeed. Read more now Visit Our Blog!

[projectcubicle1]

5 Problems That Startups Face and Have To Solve

5 Problems That Startups Face and Have To Solve

Running a business requires not only a certain level of resourcefulness but also well-developed problem-solving skills. The latter is incredibly vital, as these skills can help you tackle the results of wrong decisions and analyze the causes of the unwanted situation. Still, the best way to ensure your company runs smoothly is to avoid bumping into issues in the first place. In this regard, you might want to learn more about the problems that startups faced in the past. Thanks to it, you can better estimate what challenges you could encounter on your way to success and get basic advice on how to overcome them to prevent startup fails. Besides failing to develop a unique business idea, many startups have failed because they never addressed the needs of their customers, made hiring mistakes, or raised not enough capital to ensure sufficient cash flow. Join us as we go through these problems that startups face and learn how to become a successful startup founder! Pursuing an Unprofitable Business Idea   The most common issue that can lead to the failure of any startup is pursuing a business idea that is not profitable. Many founders start their businesses without doing enough market research. Or asking themselves whether there are enough customers in the target niche to support their venture. The result is that they waste a lot of time and money on developing a product. And when it comes time to sell it, they realize it doesn't provide sufficient value for the price. You can avoid this problem if you conduct extensive research of the market to see what is in demand or what products or services are lacking. For instance, if you want to allow your clients to send a parcel to Europe, you should check if anyone is interested in doing so. Coming up with an innovative idea is a formidable task. And even if you do, it can be challenging to make it stand out in a competitive market. One way to increase your chances of success is to make sure your idea solves a real problem that people have. You can also focus on creating a product or service that is not only useful but also convenient to use. Failing To Address the Needs of Customers Understanding the needs of your target audience is key to creating a product that people would want to use. This task can be troublesome. Especially for startups that are not yet well-known. To avoid making wrong assumptions about your customers' needs, you should learn more about their preferences and habits. If you have already launched a website or an app, you can rely on your analytics data. By analyzing user behavior on your platform, you could learn how they search for information and interact with other users. Also, you should conduct surveys to determine the attitudes of potential customers toward your startup. Moreover, you might consider running A/B tests to understand whether your product really offers something new and valuable compared to others. You need to ensure that you deliver a high-quality product or service that exceeds customer expectations. It can be challenging to do, but it is essential if you want to keep your customers happy and maintain their loyalty. Making Hiring Mistakes One of the most prominent mistakes startups make is hiring people who lack the necessary skills and experience. For example, you might hire a marketer who has no idea how to craft effective campaigns. Or a sales manager who lacks not only real-world sales experience but also basic understanding of what sales are for. Hiring the wrong employees can be costly for a startup. Not only can it lead to decreased productivity and low morale within the company. But it can also be expensive to replace them. To avoid making hiring mistakes, you need to take the time to properly assess candidates. And make sure they are a good fit for the role you are hiring for. You should also ensure that you have a well-defined job description so candidates can understand what is expected of them. Raising Not Enough Capital Regardless of whether it has been in the market for years or is just starting out, every company has to face its share of risks, and funding is one of them. Startups need to take significant risks because they have no past history of success that would allow them to secure investments. So how much cash do startups need? The answer depends on several factors, including the industry you want to develop in, the size of your company, or the materials needed to produce the goods you want to sell. To avoid running into financial issues, you need to make sure you raise enough money to cover your operating expenses. You should also be careful about how you spend your money and invest only in things that will help grow your business. Failing To Evolve With the Times Failing to evolve with the times can lead to a bunch of issues and it is common among problems that startups face. That's why it's so important to follow what’s happening in the industry: new technologies and solutions are appearing every day, and if you don't change with them, you might as well give up on your business. This situation is incredibly evident in the food industry. Thanks to the constant R&D, restaurant chains manage to keep up with their customer's needs and desires, introducing new exciting menu options. In order to be successful, startups need to adapt to changes in the market constantly. It includes evolving their products and services to meet the needs of their customers and changing their policies to reflect the current political climate. If you are not willing or able to adapt, your startup will likely fail. So, make sure you always keep an eye on the latest trends and changes in your industry and do what you can to stay ahead of the curve. Conclusion: Remedy for Problems That Startups Face The first step to achieving your startup goals is to determine them. To do so, you should consider several factors, such as your personnel, financial resources, competitors, and potential customers. Once you have gathered all the information you need and determined the goals, it's time to start planning. The best way to go about this is to draft a business plan that will allow you to assess the viability of your idea and understand what steps you should take to succeed. No matter how well-developed and precise your business plan is, it will not help you if your startup fails to implement it. This is why planning ahead is only half the battle – your ultimate goal is to create a successful startup and make sure it achieves the goals set in the business plan. To do so, you will need to address many issues and problems. However, we believe that the five listed above are critical and should be considered no matter what kind of product or service you offer. Read the full article

[stagoenix]

Follow @stagoenix Ever wonder why there are so many Venture begins and end of the year they fail❓ Because 80-90% of Venture/Startup Businesses lack of funds. Either the owner get a loan from somewhere or starts from the limited capital, and without making any planning for future they register the business, setup the office in a hope that we will work hard, will make contacts and will earn a decent amount of money in starting and then everything will be settled. Mistakes‼️ A young entrepreneur do: 1. He does not maintain the books of account, generally people think they don't need any professional (CA, CS) for the same. 2. He doesn't think about the need of professional for maintaining Website or Social Media accounts of his Business because most of the people use @facebook, @twitter, @instagram or @whatsapp accounts in their daily life but they don't aware of the fact how to use them for business purpose, due to non-specialisation they don't get the real outcome. 3.He does not afford the manpower and try to do everything on it's own, thus he indirectly waste the valuable time that he could spend on the important work that could generate future income. Conclusion: 1.Make your mind before starting something new. 2.Make sure you have enough funds to pay atleast for a year. 3.Always ready for mishappening too. 4. Don't ever think of doing Website, Social Media Marketing, Books of Accounts work or any legal work. Let the professional do his work on his own way, from the very beginning stage of your business. 5. Don't waste your valueable time. If you agree on it hit the like button, share the post or comment below if I forget to add anything that is important to run a business smoothly. Follow us on @stagoenix #businesstips #copywriting @amr_digital @john_lee_official #marketingideas #startups #infograpgicbyabhijeet #whystartupsfail @startupstoriesofficial #stagoenixfamily❣️ #instadaily #instagramtips #tuesdaythoughts (at Mumbai, Maharashtra) https://www.instagram.com/p/B3o-QOmHopw/?igshid=wmyrx5nqoxoj

[thegeekwhisperer]

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[topicprinter]

One of the biggest culprits of #startup failure is poor financial planning. We’ll explore some of the most frequent mistakes which lead to ideas fail and how to prevent them...https://www.newsblare.com/startups/startup-guides/why-startups-fail/#whystartupsfail #startupfailure #startupguide #businessguide #businesstips #ideasimplementation

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Incompetence.

[spottedrhino-blog]

Why Startups Fail #3

Every New Year's Eve all the financial gurus try to predict the outcome of the next year. At the end of the year we discover that the majority of the predictions were far from hitting the target.

One of the things that I find interesting, in any new project, is the Hit and Miss ratio. How many misses can your project can suffer before you label it a dud?

Tip #3 on the way to failure - estimate the product almost right

Many people confuse between project planning and product planning. The later, holds the MVP, a list of features and user scenarios, while the frist one holds the prioritization of the features and the resources to get them done.

Let's focus on the product!

To do it by the book is to interview at least 20 potential customers with the same script and result with a meaningful feedback. A product owner that makes all the decisions in his mind and thinks that he knows better than his/her customers has a higher probability to miss the MVP. There are only a few Steve Jobs in the worlds and chances are - you are not one of them!

[whystartupsfail-blog-blog]

Pointing the finger.

[whystartupsfail-blog-blog]

Full Disclosure

I'm a bit of an old soul. Mid-twenties with way too much time on my hands, trying to fix everything that's "wrong" in the world around me.

Most of my life is devoted to making someone else's hair-brained dream a reality (while I quietly learn from their mistakes and plot my own maniacal venture). By trade I architect and build consumer-facing products, of both the tangible and digital nature.

Bottom line, and all you really need to know about me, is that I've been around the block.. worked over and rung out.. built up and let down. Prompting me, of course, to start this blog.

Hopefully you enjoy my airing of grievances. If I can provide you with a momentary distraction from everything "wrong" in your life, I'll say it was worth it.

[spottedrhino-blog]

Why Startups Fail #2

Fail fast, succeed faster.

Tip #2 on the way to failure - don't give up

I can't recall where I learned about this phrase for the first time, whether it was at Forbes or from Lean Startups, the important part is that it struck a chord with me. It is a powerful phrase which makes a lot of sense at the agile development world.

Over time I realized that it is a perfect excuse for giving up. People attempt to create a new product, or develop a new feature. The problem is that when they encounter the first difficulty they give up. To be accurate, after all we refer to an intelligent crowed, they will calculate the ROI and the risk for investing more  effort in over coming the obstacle. At the end they will justify it and move on to fail again.