Reasons behind failing startups

Failing startups

Failure is one of possible outcomes for any startup and this ecosystem is not the safest place in business but there is no sane person who wants to fail. That’s why in this article we thought of some reasons which might lead to a failing startups.

We will discuss the most frequent reasons behind failing startups destiny and discuss each one so you can learn and avoid them in order to gain success.

Ignoring market needs

This is one of the biggest reasons behind any failing startup. Startups should think of something that fits right into your business and if they ignore them, there is a 42% chance of falling before the goal. This part can be solved using analysis and planning, without market survey, failing startups will be more than ever.

Financial problems

Failing startups are usually not the richest ones. Many of startups start with great idea and energy but they may run out of cash before getting anywhere. They may lose their team and working space duo to financial problems and without money, startups won’t be able to reach their dreams.

Right team/wrong team

Choosing the right team is essential for any startup. It’s not only about knowledge and technical aspects but this is a combination of multiple things which knowledge is only one of them. Your team should fit into your culture and without that you will be yet another name among failing startups.

So take your time, choose wisely and select the team that can melt into your vision in future.

Losing competition

This one is a little bit rough but there is a 19% rate for it among failing startups. Competition is high in startups and you may face rivals with same idea type and higher resources. So don’t get it wrong and try to analyze a way to find advantage in the market and gain the upper hand before your rivals.

Pricing issues

If you put a wrong price tag on your product then you won’t have a good chance of survival and you will join the rank of failing startups. Low price is as dangerous as high price tag. Choose your price based on multiple aspects and do a lot of study before pricing.


This one is a little bit obvious but again many startups ignore it. Poor quality will definitely lead to your fall. Try to give an acceptable quality if you can’t afford to give the best. Customers can be your mouth to mouth agents and poor quality will lead to bad reputation and again will send you to the list of failing startups.


This one is very important yet sometimes over shadows by the other points. You should have a proper business model in order to succeed in market. Without business model (proper one) you may lose your way even if you have a great product and team.

This point will cover production, marketing, supporting and a lots of other aspects so make it right or join the  sad world of failing startups.

5/5 (1 Review)


Please enter your comment!
Please enter your name here