Many successful startups are running and providing assistance to people according to their planned strategy while there are some who fail due to the following reasons:
1. Poor Market Research
Most of startups fail due to very little or no market demand of the particular product or service. Research on market before beginning any startup plays a vital role in the success of a company. Sometimes, startups’ market timing is wrong too which results in downfall of the company. We can use the metaphor to describe the product/service as being Vitamin (nice to have) or an Aspirin (must to have).
2. Business Process Model failure
According to research, startups fail due to their business process model. After building a profitable startup, some entrepreneurs think it’s now easy to attract customers towards their website, product or service. They become optimistic and neglect imperative things that might ruin their startup for instance, old marketing, positioning and targeting strategies. Business tactics should be updated with the market to avoid any big loss before hand.
3. Lack of customer satisfaction
The first mission of any startup is to fulfill their customers’ needs and wants. Another reason of startup failure is lack of customer satisfaction. Most of the times, when startup launch a product/service, it fails to meet their requirements and when this happens. It is startup’s duty to revise their product or service to keep themselves in market and business. When they fail to do so, their startup fails.
4. Poor management team
The lack of support and cooperation among team members is another reason why startups fail. Poor management team is often weak on building new strategies and building innovative ideas which leads to issues with the product or service not getting correctly built as per to the plan. Moreover, such inefficiency effects company severely and result in startup failure. These are the most common failures found among the startups who failed after being successful. It is important to keep these points in mind while running a startup and do not let them come in your success.
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