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Startups can fail for a plethora of reasons; some are related to the seed of the startup where the main concept or vision (goal) is not clear and misunderstood especially when there is just no market need for it (this happens all the time). The financial aspects of the startup are another big failure point; if the startup team do not have their financial model, ROI calculations, starting investment required, breakeven point, and the financial requirement from one quarter to the other, the startup will fail for sure. Lack of technical management can cause the derailing of the progress of a startup and cause delays or complete failure of a startup. Another fail point is having a product that deals with an issue that has many solutions in the market; if the product being developed is not vetted 100% from the financial, technical, and marketing segment, the startup may fail as soon as they are ready to begin. The marketing campaign of a startup may make or break it; a successful marketing campaign is everything to the startup especially if the funding is of a crowd funding! One of the biggest causes of startup failures is having a scattered vision or product concepts; if the startup is not 100% focused on that reason why the startup was created from the get-go, then those (in many case contradicting) directions may tear apart the startup. These are few of the biggest reasons why startups fail in my opinion.
4 friends sit on a table and think with a glass of a beer that delivering chilled beer at your home is a good startup. Undoughtly this is a good thinking of a business.
But who want a beer on a daily basis?
Until unless he is a drinker. And buying a beer after that make it chilled it's too costly and time-consuming. so this startup will fall down because this has no feature.
To take a business successful step if they create a business where they can deliver the food or drinks directly from the restaurant and take $5 extra on the bill. People can directly order them through phone or any social media and it will increase the demand for the supplying the product directly from the restaurant.
And it helps them more to sustain a long time.
You need to think out of the box and need to understand the need of the user and the market for that time.
luck of experience
high expectations
bad budgeting
and the biggest is wrong choice of team and suppliers
First an entrepreneur has to see the need in market and in order to fulfil that need an entrepreneur must build enough confidence for his/her success.Therefore consistency,perseverance & passion is the main reason.
Lack of experience.
Lack of good planing about your work.
Lack of advioser.
Not doing the homework form either business side or service provides side. It is always required to have a profissional plan by getting right requirement and doing the right analysis to have a good result with quality. having a plan to do a good implementation will also give us the advantage of keeping up with the new changes.
thanks
The main reason for the failure of startups is:
Poor planning in both production and marketing aspects.
Planning is the main reason
If you are opening a startup company, then something within the idea behind the company must be right, otherwise who would invest their time in a flawed idea?
The failure of startups are the people behind them, it could be the co-founders or the people that they employ. With the right team of people you can make anything happen, the co-founders will always take the fall and the blame, they decide who they hire and who they see as a future of their company.
Steve Jobs failed many times with his start up companies, perhaps at that time he didn't build the right team or he wasn't the right person to succeed yet
Thanks
Reasons:
