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foer me not 9/10 for new venture for me 5/10 . because before start need feasibility syudy
For successful, established businesses, about 70% of new product launches fail. A startup is, by definition, a product launch, so you would expect a failure rate of more than 70% since the startup's product has, by definition, no brand loyalty or other attributes.
So, the question really is, what accounts for the extra failure rate? The most common reason is insufficient capital. Obtaining enough capital to launch a business is difficult, and very few startups have more than the bare minimum of cash resources. Some simply don't have enough, and in retrospect were doomed to failure. Many others have just enough according to their plan, but none to cope with any unforeseen circumstances.
The next issue is innovation. Startups are more innovative than established businesses, because most startups seek to exploit a 'gap in the market' even if it is only opening a conventional business in a new location. You would expect higher innovation rates to result in higher failure rates.
Startup management usually have not spent the last several years making and selling their product. In other words, the people runnng a startup are doing a new job in which they have no direct experience and for which they may not have adequate training.
In other words a startup is attempting something which has a 70% failure rate in the best of circumstances. Moreover, it is selling an unknown product into a non-existent customer base with inexperienced management and marginal resources. It's a miracle any succeed at all.
Most startups involve a commitment from the owners that far exceeds the seriousness or commitment given by the manangers of an established company. It is normal for entrepreneurs to risk their home and family relationships.
I agree with Mr Mahmood answer's. .Thanks for the invitation. .
Lack of seriousness
Lack of good study of the project
Not to put a logical feasibility study for the project.
Yes, agreed. Many entrepreneurs know well about failure, they’ve made mistakes at the same time, many have been fortunate enough to succeed a few times, too. Along the way, we’ve been able to understand some of the lesser known reasons that some startups fail, and more importantly know why a few succeed.
Here are some reasons of such failure:
1-The product is not perfect for the market.
2. The company grows slow.
3- the team don't know how to recover or tackle uncertainty.
4-The entrepreneur ignores issues of business process, technical issues and business sustainability.
However, I assume that If the entrepreneur's startup lasts, he/her is lucky. And surely he/her has been able to do something that 90% of new businesses haven’t. Just an idea!
I leave the answer to experts and specialists in this area this is not the field of my specialty
Just take a look over some of the questions in this forum. 90% or more are absolutely inane and irrelevant and have no chance of coming to fruition. Now think about the market in general. Unfortunately too many people think themselves to know more than what is really out there. Going out without a program that can be differentiated, not creating a special niche, overpromising and underdelivering, lack of capital, and inability to convince consumers all help destroy new ventures. Should one stop venturing, of course not. I am sure you have heard the adage, I have not failed 39 times, but discovered 39 ways that do not work! The guy then made WD-40 a most successful product for the past many decades!
I agree with the sumitted answers
- information gap (product, customer, market, usage, price, distribution... "obsession with ones own idea")
- inadequate cash flows
- inablity to meet competitive rivalry
Thanks for the invite ............................ Leave an answer to the experts
