Most of us are nowadays are working in startup. It has become a trend among youngsters to do internship or work full-time in startup to gain more experience compared to MNC’s. There are many startups which receives funding and they also become successful. Not all are lucky to achieve success in short span. Success of the company depends on vision, strategy, planning and proper execution. It also depends on many factors such as team strength, Target Market, sales and marketing etc.
Here we will see Few Reasons Why Startup Fail
Lack of Strategy
It’s true that some startup fail due to lack of strategy. Its important to have strategy to run any business. Today many business fail due to lack of knowledge about market, competitor, next level steps etc. At times even the strategy they apply gives less results.
Lack of Patience
Youngsters mostly loose patience in terms of getting positive results. They want success within a year or few months after opening a startup. If you are a startup owner or want to startup your own venture now then remember that you need to have patience. Once you build trust among clients and market then only you will become popular and earn money. It takes time to generate revenue when you have just started. Some company shutdown very soon due to lack of patience.
This happens when your expenses are more than your income. It can be your personal expense that you take from company’s account or unnecessary showoff expense. It’s important that you maintain a expense list, create a budget and plan out to achieve financial goals accordingly. Debt can shut down your startup so utilize your money carefully.
Tough Market Competition
Nowadays every city has startups, as per the market many competitors apply different marketing strategy to attract customers. To achieve all of it require money. Startup which gets funding invests more and more in marketing. Bootstrapped company cannot invest more in marketing as they generally lack finance until they are rich. It’s important to understand your customers and know how to attract them towards your product keeping in mind win-win situation for both.
Thank you for reading out Reasons Why Startup Fail!