Silicon Canals
TRENDING
  • Mobility
  • AI
  • FinTech
  • Software & SaaS
No Result
View All Result
  • Home
  • News
    • COVID-19
    • Startups
    • Scaleups
    • FinTech
    • AI and chatbots
    • Travel & Mobility
    • Software & SaaS
    • Health & Medtech
    • (Crowd)funding
    • Blockchain
    • Internet of things
    • Hardware
    • Accelerators
    • E-commerce
    • Cybersecurity
    • Gaming & Virtual Reality
    • Drones
  • Features
    • Promoted content
    • How-to
    • Knowledge & Insights
    • Guest Contributions
    • Scaling-up in Europe
  • Amsterdampartner
  • Events
  • Newsletter
  • Jobs
  • About
    • Partner with Silicon Canals
    • Team
    • Contact
  • Home
  • News
    • COVID-19
    • Startups
    • Scaleups
    • FinTech
    • AI and chatbots
    • Travel & Mobility
    • Software & SaaS
    • Health & Medtech
    • (Crowd)funding
    • Blockchain
    • Internet of things
    • Hardware
    • Accelerators
    • E-commerce
    • Cybersecurity
    • Gaming & Virtual Reality
    • Drones
  • Features
    • Promoted content
    • How-to
    • Knowledge & Insights
    • Guest Contributions
    • Scaling-up in Europe
  • Amsterdampartner
  • Events
  • Newsletter
  • Jobs
  • About
    • Partner with Silicon Canals
    • Team
    • Contact
No Result
View All Result
Silicon Canals
No Result
View All Result

These are 10 common reasons why startups fail

Editorial team by Editorial team
August 27, 2019
in News, Scaleups, Startups
0
These are 10 common reasons why startups fail
360
SHARES
LinkedInTwitterWhatsAppFacebook

Most startup founders and entrepreneurs think that they are creating the next big revolution in the respective industry. However, in reality, 90% of them fail. The reasons for failure could be many ranging from lack of product-market fit to insufficient capital.

Be it a corporation, startup, investor, academic or economic development person or journalist, everyone will be keen on gaining some insights into the reasons behind the failure of startups. We have curated a list of reasons behind the failure of startups. These can help budding entrepreneurs prevent the chances of failure.

 - Partner content -
Cost of software - The Software house
The cost of building software
Marek Gajda, CTO of The Software House, shares his insights on building high-quality...Show More
Marek Gajda, CTO of The Software House, shares his insights on building high-quality software. Show Less
Read more

#1 Lack of market demand

Startups fail when they do not solve an existing market problem. Most companies believe that their invention is quite appealing and there will be a huge demand for their products and solutions. If the product fails to create demand due to low market demand, then the company will face a downfall.

#2 Insufficient funds

Startups need sufficient time and money to operate smoothly. But there is no answer to how much money one needs to spend on the business. Many startups fail due to insufficient funds. Also, many companies fail to raise additional funding.

#3 Disharmony in the team

A diverse team with various skillsets is very critical for the success of a company. Many founders cannot do what is required for a business to turn successful. Both the founder and the team should focus on industries related to their skills and academic background. The skills they possess should be complemented with that of the team. Disharmony in the team might not help the business take off. Sometimes, there can be disharmony among investors of a company might also result in a failure.

#4 Worry about competition

It is common for any business to face a lot of competition from rivals. However, startups should not pay too much attention to the competition. It doesn’t mean that companies should not worry about competition, but it should not be to a great extent. There should be a balance between overconcern and ignorance.

#5 Expensive pricing

The pricing of the product should be appropriate for the success of a startup. If a product is priced too expensive, then the product might fail to bring in customers to make it successful. It can be high only if there is a benefit for the customer and if it makes real sense. In that case, customers do not complain about the product’s pricing.

#6 Ignoring customers’ needs

It is vital for a startup to come up with products and solutions that customers need. Be it intentionally or accidentally, the team should not ignore customers’ needs. Getting feedback from users from time to time across stages of product development and testing does not let a company down. It will in fact get customers hooked on to the next iterations of the products and services.

#7 Lack of a business model

Many times, entrepreneurs believe that it is easy to build a product, service or website and acquire customers. However, it is not too easy to achieve without an effective business model. A business model focuses on figuring out a scalable way to acquire customers and monetize customers.

#8 Poor marketing

For a startup, it is essential to target the right audience. The business should focus on getting the attention of customers and converting them into leads. This is the most important skill of a successful company. If the company or entrepreneur fails to market the product successfully, then the business might not grow as intended.

#9 Lack of passion

Many people come up with great ideas but they do not sustain in the business ecosystem due to lack of passion. The lack of knowledge in the specific domain is the major reason to lose passion in the business. With passion, it is possible to build a product and market it successfully.

#10 Legal challenges

Sometimes, a startup might get strangled with legal complexities and this can be the cause of failure. It could be anything such as the suspension of an affiliate account generating maximum revenue or the inability to launch on a global scale.

Well, these are the top reasons for the failure of startups. Besides these, there are other reasons including failure to pivot, cash burnout, lack of use of the network, no investors on board, etc.

Stock Photos from cybrain/Shutterstock

Stay tuned to Silicon Canals for more updates in the tech startup world.

Also read,

Nuclear power for your b2b-startup: 5 reasons why you should join the Comet Competition

close

Want to stay on top of the latest rounds, coolest tech and hottest startups?

Subscribe to our free, daily news blast and stay up-to-date!

Check your inbox or spam folder to confirm your subscription.

 - Partner content -
Nebula CTO Andre Witte
Cloud spend management 😱
Tracking cloud spend can be tricky. Learn from Nebula's CTO Andre Witte how to keep the...Show More
Tracking cloud spend can be tricky. Learn from Nebula's CTO Andre Witte how to keep the costs at bay in 2021. Show Less
Read more
Tags: scaleupsstartups
Share23Tweet81SendShare166

Partner content | Work with us

Future of coding: CTOs discuss low-code versus custom code software development for their business

Why now is the perfect time to start hiring for 2021

SaaS sales in 2021: 9 predictions from an industry expert

Diversity in hiring for SaaS: the often overlooked topic of ageism

Boost your scale-up’s growth by outsourcing to these top Eastern European software development companies

Subscribe to our daily newsletter

Check your inbox or spam folder to confirm your subscription.

Breaking news from Amsterdam | Partner

Amsterdam-based Creative Fabrica raises €5.76M Series A to change the way people consume digital assets

Here’s how Amsterdam-based Virtuagym helps gyms, fitness providers during lockdown

Amsterdam-based soft-skill scaleup Lepaya enters Sweden; here’s why

9 promising sustainable startups from Amsterdam to watch in 2021

Advertisement

Trending

Amsterdam
Amsterdam

9 promising sustainable startups from Amsterdam to watch in 2021

January 20, 2021
BUX
News

The crypto platform of Amsterdam fintech BUX witnesses “explosive growth” as Bitcoin remains popular

January 22, 2021
Dutch Scaleup
Amsterdam

Meet the 10 Dutch scaleups selected by Amsterdam-based Techleap.nl for Rise Programme 2021

January 20, 2021
  • About Silicon Canals
  • Partner with Silicon Canals
  • Contact us
  • Newsletter
  • Disclaimer
  • Privacy policy
  • Terms & Conditions Silicon Canals

Silicon Canals 2014-2020 | Website: Bright Idiots

No Result
View All Result
  • Home
  • News
    • COVID-19
    • Startups
    • Scaleups
    • FinTech
    • AI and chatbots
    • Travel & Mobility
    • Software & SaaS
    • Health & Medtech
    • (Crowd)funding
    • Blockchain
    • Internet of things
    • Hardware
    • Accelerators
    • E-commerce
    • Cybersecurity
    • Gaming & Virtual Reality
    • Drones
  • Features
    • Promoted content
    • How-to
    • Knowledge & Insights
    • Guest Contributions
    • Scaling-up in Europe
  • Amsterdam
  • Events
  • Newsletter
  • Jobs
  • About
    • Partner with Silicon Canals
    • Team
    • Contact

Silicon Canals 2014-2020 | Website: Bright Idiots

X

This website uses cookies to ensure the best possible experience. We may share this information with our advertising and analytics partners. By clicking 'Accept', you agree to our use of cookies and similar technologies. More info