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Reasons Startups Fail and How to Avoid Them
March 14, 2018
Why Startups failWhy Startups fail

Business failure is not something you want to think when you start a business. But according to reports, one-fifth of business startups fail every year.

Here are some common reasons for business failure and how you can avoid them:

Business Plan

A great product or idea will not guarantee you success unless you plan and execute it well. The startup graveyard is littered with lots of amazing ideas and products that didn’t get success in attracting customers for long and finally failed.

Prepare a well-structured business plan that covers every aspect of how will you run your business and how and why it gets success in the market.


Your idea might do wonders when launched in the market but wouldn’t it be wise to do some market research before you go ahead with it.

Market research will give you an insight of your target market, competitors and also whether your potential customers will be able to connect with your product. Do lots of market research to back the fact that your solution is really needed in the market and will have customers when launched.


Most of the startups mainly fail because they lack funds. Only a small percentage of startups gets success in securing funds from angel investors or Venture Capitalist.

Don’t assume you will easily get funds when you pitch your idea in front of the investors. It’s not that easy to attract them and get money out from their pockets. One thing you can do is to prepare a well-strategized business plan because it’s the only way to make the investors belief on you and your idea.


A team is a reflection of how well a business is going. You may be the owner of your business but without the right team you can’t achieve success in the long run. Select your team members wisely and try to add as much diversity as possible in your team.


Even if you an amazing idea and you have been a successful entrepreneur in the past, don’t be overconfident about your success in the market. Don’t let ego rule your mind.

Be generous and humble with everyone you meet. Good relationships are a key to success in your business.

Why Startup's Fail

Why Startup’s Fail


One Response
  1. Amazing Blog Post. Looking forward to read some more informative blog posts here @discuss.business.

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