There is not a single reason for the failure of a Startup, in fact, there are multiple reasons that fails the Startups.  Among the Startups, only 50 percent start-ups survive in their 5th year of business and within that only one third grows up to 10 years. Why does it happen?  Following are some reasons that tell you why Startup fail? You can hire freelancers who have knowledge and skills of business development.

A great idea, but no plan:

If you want a great success, then you should believe in your potentials. Every great idea deserves an excellent planning for the success of the business. Implementing the proper marketing and sales strategy are the main aspects of the business planning. Proper planning of your business helps you to face the challenges and also helps you in mitigating your risks. Through planning, you will come to know how each module will work. So, do proper planning before implementing any idea.

Product release at the wrong time:

Many times people build the excellent product but the product release time is not proper. Sometimes they release the product too early or too late. If you release the product too early and people don’t know how to use that product, then that product becomes a failure. If you release the product too late, then you may miss your window of opportunity in the market. The most important thing is that before developing the product first analyses what are the needs of customers and according to that analysis develop the proper product. Be sure!! The release of the product on proper time is also important.

Lack of passion for the Market:

If your primary goal is to make money, then don’t start the company. To make your Startup successful, you need to spend 80 hours a week. It is not possible to work hard unless and until you believe that your life is a mission and not to make potential customers better off by providing them your company’s product. Passion for the market is one of the most important aspects of the success of your business.

Lack of team management:

The problem faced by the many Startups is the lack of team management. The weak management in creating such kind of product leads to failure of the product.  A successful manager and team leader are very important for enhancing the productivity.

Founder unable to make a decision:

As founder of a Startup, he/she must always be clear about his vision. It will be very helpful for making their quick decision in critical times. But in the real case, many of the Startup founders are unclear about their vision, and they don’t know what they want to achieve with their product. While making a decision, such type of founders makes a wrong decision.

Poor Marketing:

The most important skill for the successful business is to know your target audience and how to grab their attention towards your business and convert them into leads. Many founders or a builder builds the great product, but they don’t know how to promote that product. To make your product popular among the people the excellent market strategy is very necessary. Unfortunately, many of the people are not skilled in the area. For the success of your business proper marketing strategy regarding your business is very important. You can hire freelancers who have knowledge and experience in business development.

Run Out of Cash:

To keep the business running you need to think about funding for a Startup to pay vendors, staff, and maintenance. When a company grows at fast rate especially in business to business setup, the cash flow problem may become full-blown. Always reserve enough cash for Startup and instead of business without any profits, you low cash and low profits.

Ignore the Competition:

As a Startup founder, you not only have to keep your focus on your business but also have to keep track of competitors business. Many of the businessmen ignore the competition, and that is the main reason for their business failure.


This article gives you information on why do so many Startups fail? And what are the reasons for the failure? To get success in the business, you have to make successful planning and proper executing and marketing strategy. Those who succeed in the world of business are not the result of any miracles, but they do hard work as well as smart work. So, to avoid business failure, you should concentrate on reasons as mentioned above.

Kitty Gupta