As you know, every year millions of startups are founded. So, there can be so many reasons behind the failure of startups. While some fail in building strong market connection, some fail due to the lack of budget, and some due to the lack of products. Maximum times these startups are forgotten by the people because this has become very common concept with the startups.
There are some people who fail and start blaming others whereas some learn lessons from there and take responsibilities to work on their lacking points. This is the most effective method that you all have to follow. Never get disappointed by your failures, in fact, learn from there and try your level best to achieve your goals.
In last few years, founders and CEOs of many organizations share their failure story through essays. These essays are called post-mortem essays by many people. These articles describe what happened to those startups and their negative points which caused their failure. You can learn from there that what you have to ignore and what to do to go smooth and do better.
- Lack of market fit products: This is the most common reason behind the failure of many startups. About 42% startups fail on this point because what they provide in the market is not the demand of the customers. This happens when founders don’t care about the feedback of the customers and make their investments without any research.
- Lack of strong team: The level of the company depends on its employees. A great company means a great team. As per the research of CB Insights, about 23% companies fail due to the lack of right team members.
- Running out of money: This is written by Paul Graham of Y Combinator. He wrote that startups fail due to the two main reasons. First, they run out of money and second when a founder leaves. Having enough cash to sell your products and making the investments is crucial for any company.
- Marketing: A lack of attention towards marketing can be another reason. About 14% startups accepted this reason for their failure. It happens because the founders of such startups have no knowledge of promoting or selling their products in the market.
- Competition: This is the most important and interesting point to consider. You have to really pay attention towards the competition because if you forget this there are slim chances of success. Near about 19% startups believed that competition is the main reason behind their failure.
- Lack of passion and domain expertise: There are so many ideas in the world for the success of a startup. According to the 9% of post-mortem of founders, a lack of passion and knowledge for a domain are the two main reasons for failure no matter how great an idea it was. So you have to think about it.
- Lose focus: Focus is another key point to remember. The distraction because of personal issues and complicated projects can be the reasons behind the losing focus. The loss of focus is a contributor to the failure of 13% startups.
These are some of the reasons written by several founders behind the failure of their startups. Read these points carefully and learn from them. Try to ignore these points if you want to turn your startups into a successful firm.