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Top reasons why startups fail

Many founders of startups and entrepreneurs believe they are creating the next major revolution in the respective industry. In fact, however, 90 percent of them fail. The reasons for failure may be many ranging from inadequate product-market fit to inadequate resources.

Whether it’s a business, company, investor, academic or economic development, individual or journalist, everybody is keen to get some insight into the reasons behind company failure. We’ve compiled a list of reasons behind startup failure. 

Lack of market demand

Startups struggle because they are not addressing a current business problem.  Kelly who provides services like assignment help says, Most companies believe their invention is appealing, and demand for their products and solutions will be enormous. Unless the product cannot generate demand because of weak competition on the market, then the business will face a decline.

Too much competition

If you create a better product than current offerings, big corporations or new entrants are likely to enter the room and chip away at your market share. While it can be very helpful to have a first-mover advantage, a second-mover advantage helps new entrants to gain market share in a market you have helped validate.

Not the Right Team

John manager at TrumpLearning and provides the best tensor flow course says,  Many startups today are struggling to find the right team and they end up recruiting the brightest candidates who in terms of strengths and weaknesses do not really complement one another. The secret to startup success is to find a properly balanced team. Start-ups need business diversity. Manpower and resources are critical for building a successful startup with unique skill sets. We do not make the right team-up of great and smart people, but about people who share strengths with each other and minimize the shortcomings and shortcomings of each other.

Chasing Investors Not Users

Startups have met their downfall, as they are too eager to hunt for investors while neglecting customers. While there is nothing wrong with attracting investors, this should never divert your attention from the most critical and specific source of funds that really matter to your company, none other than users or customers. Holding your customers satisfied, and able to pay for the product means you ‘re in the company. Keep on satisfying the needs of your customers when bringing your ideas into action as remarked by John, an expert providing write my essay for me

Investors will satisfy if your users are happy and you can show traction and/or a growth curve. When you are only talking to investors without concentrating on your company and customers, nobody will invest in you–no matter how many investors you find.

Poor timing 

In his renowned TED Talk, Idealab’s founder Bill Gross (an incubator that has hosted over 100 companies) described the five key factors he believed were important to the success of startups. He concluded, using hundreds of case studies, that timing was the number one factor that determined whether a startup would succeed, accounting for 42 percent of the difference between successes and failures. For example, Gross says that the popularity of Airbnb can attribute to its impeccable timing because it came out right at the height of the recession when people desperately needed extra money.

Ashley, who offers to do my homework for me with TAE says, As is often the case, a startup will face some above challenges which will force the founders to walk a razor-thin line between remaining open and having to shut down the venture. For existing founders and potential entrepreneurs alike, the best way to make sure you do things differently is to be mindful of the obstacles and pitfalls that startups have traditionally encountered, and you’ll do them better.

Product Problems

One reason businesses struggle is that they don’t produce a product that suits the needs of the consumer. This can be because of easy execution either. Or it can be a far more strategic issue, which is a failure to fit Product / Market.

Most of the time the first product put onto the market by a startup does not meet the market need. This will take a few changes in the best cases to get the product/customer match right. The product will be far off base in the worst situations. When this occurs, it is a powerful indicator that a team has not done the job of going out and validating their ideas with customers before and during their development.

Not Tracking Competitors

This is one of the key reasons startups struggle and you can make the success of your company by monitoring competitors. Business owners don’t care about monitoring rivals as long as they feel they ‘re set apart from others by their strategy and uniqueness. It can work at some level, but monitoring competitors for you to decide the things you should or shouldn’t do is a big deal. So please: don’t tell people you don’t have rivals! Tracking your rivals will not only allow you to know the things you’re supposed to improve in your business, but you’ll also be able to avoid the mistakes they’ve made before, giving you a lead over your competition. In certain cases, rivals may also become allies if the solutions complement one another.


Product pricing should be sufficient for a company to succeed. If a product is high priced, then the product may not bring in customers to make it successful. It can only be high if the consumer profits and if it makes pleasant sense. Customers should not concern about the price of the commodity in any situation.

Having those reasons in mind will help you find out which items to prioritize and help you excel in your chosen industry. Just ensure that you start with a wonderful business plan and use your startup’s best marketing strategies. No matter how big or small your startup is, you probably need not start with a big amount of capital. All you need about your startup is dedication, passion, and commitment.

Networking, having mentors, having friends, being connected, and partnering up, is also very important. However fine, clever, and productive you can be, you need people to surround you and support you.

Categories: BusinessNews