[infographic] 6 Reason Why Startups Fails

6. 6 REASONS WHY MOST STARTUPS FAILS People starting a new business would not like thinking about failure. However, according to research by Small Biz Trends, 90% of the startups fail. To avoid being part of this majority, it is not only important to work hard but also essential to work smart. The main reason behind the failure of the startup is not the idea but problems like poor strategy and funding. HERE ARE THE MOST COMMON REASONS THAT LEAD TO THE FAILURE OF A STARTUP INABILITY TO RAISE FUND Money is one of the essential ingredients behind the success of every startup. Venture Capitalists only finance 1-2% of the ventures they see. So, don't think that you will raise money as soon as you need funding to pay your bills. The fundraising takes around six months of active calls, meetings, and visits. You should assign at least two people from your startup dedicatedly responsible for fundraising. 65% of entrepreneurs admit they were not fully confident they had enough money to start their business." IGNORING YOUR CUSTOMERS Ignoring customers is the fastest way to fail. Don't guess about their needs; listen to them. Customers have their unique requirements, and it's your job to meet their expectations. If under some circumstances, it is not possible for you to meet a customer's demand, then you must take feedback from them 14% and use it to improve customer service in the long-run. failed because they ignored their customers. PI NOT HAVING A CO-FOUNDER Going solo might seem easy at first, but it's not. All the stress that comes with the workload is too much to handle alone. Solo founders take 3.6x longer to outgrow the startup phase. SOLE OWNER Partners are needed to keep morale high and to brainstorm new ideas but never rush while looking for a co-founder. 230% better performance of teams with technical co-founder in enterprise companies.B1 TEAM WITH NO COMPETENCE A team is what makes or breaks up a business. A perfect team does not have all the ideal and intelligent people; rather, it has people who share strengths and mitigate the weaknesses of each other. As a founder, it is your responsibility to attract the right people and sustain them who can understand the market and scale the company. 63% of critical issues affecting start ups in 2019 is access to talent.4) NOT REALIZING COMPETITION Opening a new startup often leads to thinking that your product is unique, while in reality, it most certainly is not. Many of the startups fail because they take their competitors lightly. Ask yourself - Is your idea unique? If someone else is already working on the concept, then what different things you can do to win the market. of startup founders eventually realize that their intellectual property is not a competitive advantage. 51 70+% FAILURE TO MARKET SALES The inability to market a product is one of the major problems for startups. Marketing strategy is very important so that people know about your product and buy your product. If marketing is done right, then it becomes very easy to generate higher sales. Targeting the right audience with the right strategy at the right time can lead to the growth of the business. 14% of startups fail due to a poor marketing strategy. (6] It is crucial that you spend some time to understand what went wrong so that you can work on it. Take some time to fix what's broken; else, you will have no one but yourself to blame. SOURCES: No, It's Not Money - Business Insider Why Entrepreneurs Fail: Top 10 Causes Of Small Business Failure - Forbes 1. 2. 10 Year Project - First Round US Startup Outlook 2019 - Silicon Valley Bank 11 Surprising And Insightful Statistics About Startups - Forbes The 7 Real Reasons Startups Fail – Inc. 3. 4. 5. 6. Ace Cloud Hosting

[infographic] 6 Reason Why Startups Fails

shared by aditi90 on May 20
In this infographic, you will know the 6 major reasons that cause the failure of the startup along with the tips to overcome these to make your startup successful again.




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