10 reasons why startups fail?

10 reasons why startups fail?

Startups are made to change the face of business and technology. But for every successful startup, many other fails, sometimes mysteriously and often unnoticed.

There are multiple reasons for a failure of startups. List of major reasons for startup failure.

1) No Market need:

The biggest problem in the failure of a startup is, they are not serving according to what the customer’s needs. There is not a compelling enough value proposition, or compelling event, to cause the buyer to actually commit to purchasing. You should hear to people what they are looking for. Market timing would be wrong. If you release your product to market when there is no need of your product to people.

2) Not the Right Team:

A startup might fail if the team members are right for your business. Often to launch your product early, you might have build teams with peoples who have little or no interest in product idea. It leads to product failure as people working will never give their 100% to you. This leads to product failure. There needs to be enough diversity for a variety of skills to come into play.

3) Ignoring the Competition:

Startup meant to keep the focus on your own product rather distracted by other product. Ignoring the competition was a recipe of startup failures. If you ignore the competition you are going to lose. In a startup, there is every time competition with every startup. Other might be best from you. So keep in mind before you keep the product in market or competition, make sure you are right to launch your product that is new launch in the market.

4) Wrong Price:

The trickiest part of the market is to keep the price of new product or service. If you don’t do proper marketing for your product and its opposes with the same or equal to it. You might also consider the price also than only you can set perfect price for your product or else set the wrong price for your product. It might happen that your product might keep the place in the market. Some startups develop a great product but its costly. It leads to underperformance in sales and revenue.

5) Not User-Friendly Product:

Sometimes developers get confused with their creation and stop thinking about new product what the users want. If you are making a product which is of no use and it’s not user-friendly so it will take it to a failure of your startup.

6) Neglecting Customers:

Customer service is the prime job od founder and chief executive. If you are neglecting your customers than you it the point where you will lose your customers and later on your startup will fail to be in the market.

7) No Advisors:

It is good to have a good mentor for your startup. If you are moving alone in your startup, then you are making a big mistake that might lead you to failure. Mentors can guide you day by day to avoid making such mistakes.

8) Too Early or Too Late:

Every idea dies when it is not implemented on time or it is implemented after time when it was about to launch. Firstly, the simple fact is that we are starting interest in startups and secondly, in today’s fast moving world every day thousands of product are solving their problems. In delaying of the launch of a product will keep you behind the competition which will lead you to product failure.

9) The product is not good as expected:

Lots of entrepreneurs think they have a unique product or service. But unique products will not always be automatically bought by customers. It’s all about perception.

10) Internal Troubles within Management Team:

One wants to left and other wants to go right. Some want high salary without any work. Some have no respect for other people. Some are not listening to other peoples. Some have high midterms plan. Some have low midterm plans. Some are very smart and some are less smart. Some cannot talk on high levels. Some give their 100% work. Some work seven days a week. Some only works 10 to 5 job time. It is always possible for internal problems. But you don’t forget that you are in the same boat and have the same goals.


There are many other reasons startups fail, but this 10 came up as most common when anyone asks about the failure of startups. Should your startup fail, it’s worth spending some time to understand what went wrong and learn from your mistakes to make it next time.