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Why Startups Fail? Important Lessons to Learn


A company which has been created to earn profit, initially will adjust according to its nature of the products and services. A startup company is one which has been started to develop and its initial development can only bring some part of the profit. There is a possibility of good profit if the owners of this startup business company decide to expand its scope of profits.

why startups fail

Main Startup Trends:

While starting an initial startup company the owners of the company decide to sell the product which is rarely available in the market with the strategy of higher income. Eventually, when demand increases, supplies will be created to earn more profit. Similarly, when a company starts building its name in the market, it is very important to create some business startup trends which go viral. Here are some of the startup trends and they are as follows,

1. Virtual aspect:

When a company starts building up some of the imaginary elements of the company to be recognized by the potential buyers, it starts creating some of the virtual aspects of that particular company or product. These virtual aspects can be created for the overall development of the company and its product. This can help that startup company to create its own value of products. And these kinds of trends can build goodwill for that startup company.

2. Developing software designs of the company:

To make overall development of the company, the company owners need to understand the value of digital marketing at this current status. Development of software designs of the company can be considered as a main element for the development of the company. It is necessary to understand all the recent digital revolutions and it is possible that these startup companies can kick start their company by involving these startup trends.

3. Technological strength:

Very best startup business company needs to understand the revolutions undertaken in the form of technology. These technologies can help anyone to create their own product value. These kinds of elements can build technological strength to overcome any type of risk factor. These risk factors build startup trends and once these risk factors are considered then that startup company will be declared a successful and profitable company.

4. Online market areas:

To build a popular startup trend, the company owners need to know all the online marketing areas. These marketing areas can help to understand the requirement for the current status of the marketplace. These statuses of market place could lead a startup company to understand all the elements of the successful business. And ultimately it can be a factor which is mainly influenced to understand all the factors of online market areas.

5. Security:

Every startup business or company needs to be sure of their security systems. The security system is nothing as similar as general security systems. A layer of protection is necessary for every business, whether it is a small business startup or existing business. Security needs to be undertaken all the safety and security measures for the overall protection or overall development of the business or the company. Therefore, it is important that security systems help in developing startup trends of the business.

6. Social campaigns:

To popularize the products and services of the startup company, it is necessary to start social campaigns so that the products should reach all the attention of the common crowd. It is very important to understand that because of the common crowd the startup company can reach most of its target of profits. The common crowd is the main focus to be targeted at. By conducting such social campaigns, a startup company can create some kind of startup trend to kick start their startup business.

7. Online media:

By publishing product details on social media and also by providing available discounts for the startup product, a startup company can start building their startup trends. These startup trends can be helpful for the overall structuring the business and it is necessary to handle social media to hold on to the common crowd for the sake of their successful business. Therefore, social media can play an important role in building up startup trends of the company.

8. Insurance:

Every business, whether it is a startup network or existing should understand the value of insurance for that particular company or business. Insurance of the small startup business can bring social security for the startup business or company. A startup company needs to be insured of all the sudden activities. It is even possible that insuring a startup business can create startup trend for that company which can be a source of marketing strategy for that company’s product.

Reasons Why Startups Fail:

To start a good startup business it is important to understand that every business needs its time to settle in the market. And sometimes it is possible that it may face a certain kind of startup problems and challenges as well. Here are some of the startup challenges which can be faced by startups in the business market and they are as follows,

1. Competition:

Every startup business faces the competition of other businesses in the business market. These startup competitions can be mainly derived from their supply of goods and services. Sometimes it’s possible because of this competition most of the companies lose their product value in the business market. The necessary factor which needs to be explained is that through these kinds of competition, a start-up business might feel a little shaky in the market.

2. Fast growth:

In the business market if there is a company which is already making its name in that service industry and there is nothing which can stand in front of them as a competition, then that industry can be declared as a tough competition to all the business of the market. Because of its rapid growth and profit making process, a startup businessman should understand the level of their competition and it can be considered as a healthy competition with another company.

3. Talent management:

Every startup business will be having their own sourced talent management. But it is not important to understand the talents of business, instead, it is necessary to understand the talent management of the competitor company. By understanding the talents of the competitor company, a startup company can build its strategy to compete with the main talents of its competitors.

4. Speeding business market:

Every business expects to start developing its product range for the sake of better profits. These profits can be derived from mainly the manufactured products of that startup company. And ultimately it will be difficult for the startup company at that point when the business market keeps growing at a very fast speed. To cope with that speed, the startup company needs to buckle up all its strategy to hit the business market successfully.

There may be a possibility that when a startup company faces healthy competition and market growth, it starts losing its value in that business market. Other than that there may be some more reasons for startup failures of a company. Some strategic ways to overcome challenges and failures are as follows.

9 Ways to Overcome Startup Failure:

The following mentioned are few startup business ideas and ways to overcoming business failure.

1. Very few owners or founders:

Some of the startup company owners end up being a failure in the startup business because of their mistake while teaming up into a partnership business. It is very ideal to have a business of two partners and even can think of more than two partners’ business, but it is very bad to team up in a business with more than three partners because it is possible to take one decision these partners cant get the same opinions about it and then end up with an argument.

2. Finding a perfect business partner:

When starting a company or business, a person should have some kind of business knowledge. This kind of business knowledge helps him/her to take accurate decisions. The most common mistake that every businessman does is that before planning about the business partner, they always think of the main product of that business. Therefore, it is better to choose a partner with prior experience in the business.

3. Market research:

Every businessman should think of the product for his/her business which will be in demand at that point of the business. For example, starting a business with umbrellas will be seasonal and will never lose any customer during rainy season. Therefore, think of the product or prepare yourself with market research to choose an appropriate product or services for the startup company.

4. Customer satisfaction:

Whenever a businessman starts their business it is very necessary to understand the needs and wants of the customers. A startup business should understand the market first and then all the elements which affect customers’ needs and wants. When a business starts producing something which doesn’t satisfy the needs and wants of the customers, then it is possible that those businesses can fail in their venture.

5. Lack of technology:

Another important reason for the failure of the startup business would be their insufficient electronics. Technology plays an important role in any kind of business idea. Practically technology is the sole backbone of any kind of business ideas. It is very necessary to have sufficient amount of technology for the successful business venture. Therefore, every business needs technological support for the overall growth of a particular business.

6. Unprofessional employees:

It is necessary that every business needs employees who are well qualified and well experienced in their field. A successful business needs to hire educated and experienced employees for their business. Most of the company loses there because they hire irrelevant employees for such important posts of their company. Therefore, if a businessman hires someone responsible for that post, then he/she can overcome such loss.

7. Marketing strategy:

A well-planned marketing strategy can bring positive profit for that startup company. A marketing strategy is a process of planning a source of trending a business startup. For the overall growth of the business, a person who owns that business needs to be well prepared with their business marketing strategy to target their potential customer, who provides what they want and need.

8. Investment plan:

Every business startup idea needs well-secured investment plan. This investment plan needs a point of view of projection. These projections of investment can deliver through their business partners. Investments are such a part of a company which is very much necessary to kick start their business. And while choosing such investment, a businessman needs to be careful while approaching their investment or sponsors.

9. Business suggestions:

A businessman needs a mentor to guide him/her towards the pathway of success. These successes have never been easy for anyone. Therefore, whenever a businessman stacks himself/ herself within something big, there should a mentor to guide him/her about the way to get out such situations. Therefore, it is very necessary to understand and accept all the suggestion in warm wide arms

To end this discussion, we would suggest every startup business holder that all the above factors are very much necessary to start a new venture in this competitive business world. Starting a business with high expectation can create certain kind of problems with the profitability of the business. A startup business needs three elements to start a business and they are capital, strategy and employees. These three elements should be strong before starting any kind of a startup business. Therefore, if a person who is new to this business can start thinking about their startup and also can follow all the above-mentioned strategies to be successful in their startup business.