5 Reasons Why Most Start-ups Fail, But How the Few Survive


According to a study, 75 percent of start-ups fail. The failure rate of the US companies is more than 50 percent after 5 years and 70 percent post 10 years. There are a few major reasons that result in the failure of start-up companies. The top 5 reasons are as follows:

They offer product or services that few customers require

As per a survey, 42 percent of the start-ups offered products or services that have no or very little market demand. Every start-up does not think to launch a revolutionary idea, which can take the world by storm. Most of them reinvent something. The ones that do not succeed do not do proper research, analyze the potential competition, and study the marketplace. These companies do not produce things that people do not have. If you want to remain at 10 percent, you need to produce something new and unique.

Content with small business growth

Growth should be driven and calculated by intelligent strategy. If your company is not experiencing huge growth after being in operations for many months, there might be a problem. Every entrepreneur does not look for quick growth; however, this may not be the obstacles. The problem lies when aggressive growth is not a part of their plan. If you are not aggressive, others shall bypass you and make your business obsolete. To become successful, you should embrace growth.

The entrepreneur is not a leader

The entrepreneur should know how to become a leader. Having a good idea is different from making your brand a successful one. Smart entrepreneurs learn to become a good leader and they do what they can and outsource the remaining. You have to work on leadership skills and develop them for achieving greater levels of personal as well as a professional performance. You have to know how to lead a team. Practice and study leadership and also get a mentor and also feedback from your team.

Situational awareness is not there

Situational awareness is important to accomplish your mission. Business leaders and entrepreneurs should be aware of their surroundings so that they can mitigate competitive roadblocks, surprises, and external forces.

Start-ups that fail have leaders and founders who spend a lot of time to work in a business and they have very little time on strategic growth, ensuring service or product get the right audience and study the competitive landscape.

Know the things that are happening inside as well as outside your business. Know the terrain and your business. Formulate a plan to navigate unavoidable obstacles.

Cannot manage the cash flow

Cash flow is a big thing. If you do not have cash on hand, your business will be at risk and you will not have adequate financial resources to fight the periods of slower growth. Every entrepreneur has the responsibility to manage cash flow properly. Employers, bankers, partners, and shareholders hope that there shall not be a poor cash position. This is applicable when you start online gambling business to play games such as joker123.


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