Why Startup Entrepreneurs failed | you should know before Startup

The idea of ​​creating all the initiatives or startups in the head is rotting? With the idea of ​​hurrying, many fell down the business. But they did not go for a few days to get their start-up or initiative. Entrepreneurs lose or lose interest in their investment; In this way, many potential initiatives have begun to come in the beginning. Experts have searched the causes of startup failure around the world.

Recently, US-based market research institute CBI Insights released a few reasons for the failure of startups. Here are some reasons for the failure of startup:

Unnecessary in the market: It must be verified whether it will run in the market before creating a business venture or startup. Instead of preparing a complex solution to any problem, take a business initiative considering the needs of the market. Many people pretend to be an interesting solution without demanding the market. Usually, startups fail to market in 42 percent of the cases.

Startup Entrepreneurs

Money is the end of the end: Many people jumped with startup while having cash in hand. But whenever the cash was started in the sense of money, the initiative started falling down. Experts have blamed the lack of proper use of cash as the second main reason for the failure of any startup. For the failure of startup in 29 percent, it is blamed for not spending money properly.

Not having the right team: Another reason for the startup failure is that, unable to make the team properly. 23 percent of the reasons for the failure of the startup are not the correct team combination. Startup is not successful if there are not experienced and experienced teams. If the team member does not have proper coordination during an initiative, then the startup can not be taken much longer.

Startup Entrepreneurs

Not being able to compete in competition: The fourth reason for the failure of startup is that the competition can not survive. If the participants take lightly, it will quickly surpass your startup. There is no chance for others to take lightly in the competition market. Startup failed due to 19 percent of the cases.

Price issue: According to the CBI Insight, the fifth issue of the failure due to startup failure is the price issue. It is important to determine the exact price for a product or service created by a startup. Too much or too little price may cause losses for startups. 18 percent of cases startup failure because of it.

Not a product-friendly product: The product or service created by startup must be of course useful. Otherwise it is difficult to start the startup. Startup failed due to not being a useful product for 17 percent of the cases. While creating the product, the needs and needs of the users must be kept in mind. Remember, the buyer is the king.

Not to be a business model: 17 percent is responsible for the failure of the startup, without being the right business model. Just do not have a model of business, whether it is sustainable or not, it is important.

Poor marketing: It is said that creating products and services is not sufficient, they must identify the appropriate marketing techniques. Many startup startup failed due to lack of proper marketing. In the 14 percent of cases, the failure of any enterprise is to blame poor marketing. Understanding a business customer and their attraction strategy is important for success.

Do not evaluate customer feedback: 14 percent of cases are not considered to be the reason for the failure of the customer's response. The quality of the services will be increased according to the needs of the customer about what the product or service is saying. Changes will be made according to customer feedback. Only then will the success come. Otherwise, the initiative will fail at the beginning.

Incomparable product: When the goods are in demand, then the product will be released. Business benefits will come when you can understand the right product time. It will not be acceptable to the customer, leaving the market in a hurry or too late. The tenth reason for the failure of startup is believed to be the issue of leaving the market at the wrong time.

Not to be intriguing: Another reason for the startup or failure of the enterprise is to have no specific focus or focus. Due to the main goal at the start of the business, the business is in danger of leaning over other issues. Analysts blame the lack of target for startup failure in 13 percent.

Controversy with the co-founders: In the beginning, beginning with a fight with investor or co-founders, the start-up of the face In case of failure of startup for 13 percent of the case, the dispute between the co-founders or investors is liable. To make the startup successful, it will be good to have a compromise between themselves. Must be transparent.

Leadership is not correct: In many cases, due to wrong leadership, the initiative may fail. Wrong leaders are responsible for the failure of the enterprise in 10 percent of the cases. If you need to succeed in the initiative, you will have to think about the changes.

Lack of Emotion and Skills: According to a survey conducted by CBI Insight, the 14th reason for the failure of the startup is found to be the motivation and skill of entrepreneur in the enterprise. As a result of the startup failure, 9 percent of the cases have been reported.

Location: Where is the startup or initiative taken, the place is also important for success. With the delivery of products or services, startup positions have a big impact. Sometimes, if the venture is not in the right place, it fails. The survey found that 9 percent of the cases are due to the bad position for startup failure.