Why do startups fail?

Dear Mahmoud,

Building a successful business is every entrepreneur's goal - but only1 in12 succeed.

Why do startups fail?

The Startup Genome project analyzed data from3,200 companies and came up with some answers. At the core of any successful business are two things:

1- A good product

2- A large market for that product.

In other words, a startup should be able to scale. And to scale properly, it must balance the growth of five core dimensions: customers, product, team, business model, and funding. The dominant reason for failure: premature scaling of one or more of those dimensions.

View the infographic for more!

For me there are3 reasons:

1- Only having one founder is the most common reason, Running a company alone is much harder and more stressful than it seems, and it's especially unusual for a startup to succeed with just one person behind it.

2- Reason number two: forgetting to ask, "Who's going to buy this?" before launching. Freemium models are often the fall-back business model, but if a founder doesn't have a truly amazing product, no one is going to buy an upgrade for it. "Unless you can get paying customers, you are probably going to die.

3- Finally, running out of capital is a sure way to kick the bucket. I saw a lot of startups get90 percent of the way there then run out of cash, and it's often because they didn't raise enough during their last round and plan for enough runway.

It's very important question, and we have to invest more time investigate why its happen?

Best Regards,

Hany Sewilam AbdelHamid

Business Development Manager [Sales & Marketing]

Entrepreneurship Coach & Consultant           

http://www.sewilam.com/

- facebook.com/Orkanza

- twitter.com/HanySewilam

start up fail becoz of mis-management of fund, no proper study about market trend, no proper place, not proper marketing, no patience etc.