Needless to say, to start a company is a risky business. You don’t know what would be the fate of your newly launched startup. Humans are fallible: they can lie, they can steal, they can get tired, and they can lose their health. The point is there can be many reasons why your startup can fail. It has been seen in many observations that 90% of startups fail. Only 10% startups secure success in today’s cutthroat competition. If you don’t want to fall within 90%, you should know what mistakes these 90% startup made and what 10% startups are doing to be successful.
The product is not perfect
The top reason why most startups fail is they are not able to identify the right market for their products or they fail to offer products based on the current needs of the market. Most successful startups have one thing in common that is tapping the right market with the right products.
Cash is the fuel for the growth
You will need an inflow of cash to get momentum. A good number of startups fail as they run out of the cash; and all the successful startups have a regular flow of cash to get going. The market is tough, regardless of the business domain. And you need cash to run aggressive marketing campaigns.
The right team means success
Having the right team ensures that you will offer quality products to the right market. The more versatile team means the more success. Your startup may have a blow, but the right team will help you recover from the blow. Most failed startups lacked right teams.
Beat the competition
All successful startups have a watchful eye on their competitors. In today’s fierce competition, you cannot rest or become complacent. If you want to be within 10%, keep a vigil on your competitors.
Pricing cost issues
90% startups fail because they are not able to deal with pricing and cost issues. You must offer the value of money to your customers, else you will lose them. Remember customers have many options, but you don’t.
These are top five reasons why 90% startups fail. Other reasons include poor products, lacking business models, poor marketing, poor customer service, losing focus, lacking passion, legal challenges, bad location, failing to have a network, etc.
You must know that the path of a startup is never smooth, and you are going to have a bumpy ride. But if you have the resources, preparation, and passion, you will overcome all the obstacles in the way leading to success.