Why Most Startups Fail?
It seems that the majority of the startups fail [2] despite taking the right initial steps. But why?
Without any ado, these are the commonly seen reasons why most startups fail according to my observations:
First of all, a business needs to sell a product or service that people are willing to buy i.e, it needs to have a potential market value now and in the future. There needs to be a clear vision or idea about what you are offering through your business. The idea doesn’t have to be magnificent, it can be something simple but essential. And it is better if it is an original idea. Investors invest in startups primarily on the product or service outlook first.
Secondly, the business needs to execute the production process efficiently, effectively, and maintain it for a long period of time. When the product idea itself is too complex, not viable, or executable compared to the resources available (such as cost, expertise, technologies, etc), it leads to service interruptions.
The third challenge is bad leadership and management which leads to a lack of communication, collaboration, and ultimately demise to product or service maintenance failure as well. Building a team with a large group of experts does not always ensure the smooth delivery of a product or service in a business. Employee retention is as important as customer…
