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1.Being a Fresh Entrant they lack market support. Their product need create a market for the product with much efforts and concentration on one part dilute control over other aspects.
2. Business Model Failure.
3.Lack of Experience of the Management Team
4.Lack of Inflow of Cash--Often the management is running short of Cash
5.Product Problems and Market Acceptability
Following are some pitfalls that most start up falls into:-Lack of Expertise
-Lack of Market Knowledge
-Lack of Credibility
Agreed to the most appropriate answer given by Mr. Nazar M.Salih
Wrong planning and bad management are the most
You start your business for the wrong reasons.
Poor Management
Insufficient Capital
Wrong Territory
Lack of Planning
Overexpansion
No Website
Team building. Many companies closed because of an incompatibility team
Adoption of the company's establishment on the creativity of the idea is not on the market and consumers need them, and thus remain trapped opposition to the others received no more impressive.
Not withstand the fluctuation of revenues or delay the recovery period, which leads to loss of patience, team work, and escape forward to search for government jobs or private fixed income and sale of all the company's property
Inability to adapt to market fluctuations
Emerging markets are strongly influenced by the economic crises facing as a result of slowing economic growth in middle-income countries, and asset prices fall sharply.
A lot of profits in emerging markets, caused by speculative funds that invest in them depends on the type of adventure carried out by foreign investors wishing to achieve quick profits, and these profits go fast and quickly achieved.
The high proportion of foreign ownership as one of the emerging market requirements affect the citizens of investors and reduces their chances, as well as what it creates fake rises in stock prices.
Investors' appetite for this type of investment, rather than traditional deposits and treasury bonds, the national economy loses these investments went to services and infrastructure projects.
The small size of emerging markets makes stock prices tend to rise, and this gives the impression is not true for the state of the market.
Emerging markets are more sensitive than others to the political and economic unrest, and this generates a state of lack of confidence in the market.
Emerging market exposed to pressures from the outside in order to get the facility to enter, and the inside to reduce the cost of capital, and this makes the market improved laws on foreign investment and private ones to attract investors to the detriment of the investor citizen especially small investors who do not Asamadon to competition.
Lack of efficiency in the organization and a weak legal system, and this reduces the effectiveness of these markets, where the emerging markets need to march efficient tires for Sir Hassan financial operations, as well as a transparent and My laws to protect investors.
Given the importance of emerging markets in the global economy, the crisis in which the exchange rate represents a significant threat to the economies of the world because of the high correlation between countries and economies.
The industrialized countries to impose protectionist measures against products emerging countries under the pretext of the weakness of the evaluation of local currencies, and weak social protection in those countries and working conditions.
Emerging markets suffer from the phenomenon of rapid loss of financial reserves and capital flight and a sudden drop of the exchange rate, because of its dependence on foreign investment significantly.
Rush sovereign funds owned by the emerging countries behind the profit-taking and the use of foreign exchange reserves to finance the acquisition of strategic companies and institutions in the European countries and America, perhaps creates a state of hatred and suspicion toward these investments. Also, these funds lose a lot because of the financial crisis faced by these countries.
Emerging markets are affected by some extraordinary actions taken by states and governments, such as the implications of slower growth in China, which, ending the monetary stimulus program in the United States, which makes the appetite of investors toward emerging markets decline and lead to instability of financial markets and exchange rates.
Stock market adoption in emerging markets on a non-local investors, makes it highly vulnerable to change the mood of investors around the world.
Rising interest rates in major countries such as the United States makes investors reluctant to invest in emerging markets and are turning to places of high interest rates, and thus these markets suffer from the withdrawal of financial flows.
When economic conditions are improving in rich countries, the big players in the global markets turn their attention to these countries at the expense of emerging countries, which benefit greatly from the financial crisis that hit the economy of the major countries and paid to the economic recession.
Young founders tend to complicate things too much so keep it simple and follow the norms.
Don'twait too long to release the product.
Be flexible, speedy and have a clear vision, retain control and ownership of your business.
Don't loose focus on your product, strategy, target customers, resources.
Don't develop a product without enough input.
Young startups often don't validate the demand for their product.
Young startups shouldn't forget to be consistent with key connectors in their network.
The most important is failure to position business/products as a result of:
1- Inadequate analysis of their intended industry in terms of its size and trends.
2- Inadequate analysis of their competitors
3- Improper marketing communication strategies.
Many reasons, including:
1. not a new market field study.
2. study of the new product and its experience in the field and knowledge of consumer reviews
3. absence of systems within the company (such as quality management-risk management-financial management administrative controls on how money
4-zero management integrated expertise inside and outside the company
5-not give products cover advertising promotion
I found an article from Greg Baker and quoting him.
"These4 things are likely to kill a start up even though they sound helpful:
