What are the main causes of start-up failure?
Giovanni Ghigliotti
18 replies
Achieving success in a particular business area today is the task that many entrepreneurs seek to solve. However, on the road to growth and market recognition, many start-ups face certain challenges that significantly inhibit the development process and force management to find solutions to these problems. In order for a new company to gain market recognition, it is essential to overcome several difficulties; otherwise, a good profit and customer interest will be unattainable. What do you think? :)
Replies
Durga Prasad Raju Nadimpalli@prasad_nadimpalli
"Marketing" plays a key role for any product success. Especially for startups
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There are various causes, and even startups with great products failed at execution. I think passion for building and planning to execute a successful are two different things, and when executed properly, all startups will be reasonably successful.
@murali_aasaan There are various causes, and even startups with great products failed at execution. I think passion for building and planning to execute a successful are two different things, and when executed properly, all startups will be reasonably successful.
my main causes of start-up failure:
1. Expanding too soon. (spreads the start-up too thin)
2. Running after valuation more than a solid foundation. (makes the team compromise on important aspects of customer retention)
3. Adding unnecessary features in the name of upgrades. (confuses customers)
4. Throwing money to capture market share. (customers will come, but they might not stay)
The most common reasons for startup failure is lack of market demand, lack of planning and cash flow difficulties. The first step to avoid failure is to do your research before launching your product or service. Study the market, your competition, and ask yourself if the market deserves this product. If the answer is no, then it's time to re-think your strategy.
There are many reasons why start-ups fail, but the main reason is an inability to understand the customer. If a business can not attract its customers, it will not be able to make a profit. If you start a business, you must focus on the customer experience. If you do not understand what the customer wants, what it needs, and why it is important, you will fail.
@tibor_szantai2 Thank you for your reply. I agree with you we have to find a problem and find a solution
I think money running out, being in the wrong market, a lack of research, bad partnerships, ineffective marketing, and not being an expert in the industry. Compare Brokers is a team of qualified professionals that provide advice on how to manage money and assets efficiently.
I would say mostly patience and perseverance at the cusp of the hour as business needs a mindset that you have to do whatever it takes to sustain it. When those hard decisions are not made, that's when failures occur.
@murali_aasaan Yes I very much agree, perseverance and the desire to create something new that can impact people's lives.
@giovanni_ghigliotti2 As of my experience, one of my friends has a great product which will reduce many pain points of store owners and customers. But sadly, it is failed because he couldn't do marketing properly.
In my opinion "Marketing" is one of the key areas for start-up's.
@maheshvarma_kanumuri Absolutely marketing and product are key to a successful start-up