Why Do Startups Fail?

Every year, we see new startups struggling to make their mark in this competitive world. But do you think all get the taste of success? No, not at all. It might seem a bitter fact for you to know that most of the startups fail to rise in their initial stage of growth. All their dreams get watershed with the failure. Ever thought why this happen? Well, if you are unable to figure out, then let me tell you that there are several reasons behind it, which I am going to reveal in this blog. So please stick to it, as it might help you in pointing those points before coming up with the idea of launching your startup venture.

No doubt, every owner of a startup business is well aware of the obstacles standing in the midway of success. Ignoring them is not an escape route. So it is better to face them, and know them before it’s too late. Now if being asked a simple question about the reason behind why startups fail, then the most possible answer would come as lack of resources or capital funding. Okay, they are, but there are more other issues that pose a big challenge for you to taste success. So come and let us find them below.

Seed Capital

With seed capital, I am indicating to money, directly, why because it is the most basic requirement for a startup business to rise. And you know money plays an important role. If you fail to accumulate seed funding for your startup project, then sorry to say, your dream of reaching your target will continue to remain a dream for you. 

Lack of ample funding strikes much hard on the infant growth of your startup progress, delaying many aspects like hiring core staff, promoting your product and office infrastructure. That is why there are platforms like Startup Paisa, which help in crowdsourcing for startups through finding angel investors and venture capitalists. Always remember, the road to your startup success begins from the initial investment.

Being Ignorant To Sales And Marketing

Let me ask you whether you are paying enough attention to sales and marketing? Well, if you don’t find it important, then I must say you should start paying attention to it. I am saying this because many startups fail due to this neglected approach. They think over smart and hope to get away with growing sales online with no need for a marketing team or sales department. 

If you have newly opened a startup business, then I advise you not to follow this blunder approach. Have no qualms in hiring an SEO team who would help you in getting your website accessible to search engines. Also, they can help in getting the content ranking for appropriate keywords, leading to driving maximum traffic or say visitors to your website.

No Proper Business Plan

Proper business planning is needed to let your startup business grow smoothly. Lack of core areas like funding, sales, staffing, development, and others becomes one of the reasons why startups fail to taste success. In one sentence, I would like to point out that if you are not prepared for the best, then get prepared to fail. However, startup incubation support comes as a big hope for all startups in helping them out to grow their business. 

Competitive Marketplace

Getting success so easily is not possible to even imagine. Yes, it might sound bitter, but the more you become familiar with this fact, it will be better for you. Most of the startups fail due to a lack of understanding of the competitive marketplace. By following the right strategy and having a hawk-eye on the rapidly changing competitive market, will surely define your success. However, you must be having a new approach or new ideas regarding your products and services that set you apart from your competitors. It will also benefit you in getting the attention of investors to invest in your startup project.

Poor Leadership

Because of poor leadership, many startups fail to make their mark. Inculcate better mentorship qualities to run your startup business, instead of relying on someone else shoulder. Having a great knowledge, market experience, and standout ideas about products and services, will certainly fetch success for your startup business. 


So these are those crucial points that are behind the reason why startups fail. It is better if you take note of all these points, as even a small ignorance and lack of knowledge will let you taste failure. And honestly, no one expects failure other than success. However, it is good to learn from failures. Better don’t repeat the mistakes which most startups do in their early stage of growth. If you don’t want to dampen your spirit by facing failure, they better be aware of the competitive market and come up with new ideas to mark your success and to rise above your competitors.

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