Why Startups Fail (5 Reasons)

Most Entrepreneurs are completely prepared before they start their Venture. They know better than to mindlessly rush into the Business World. They have planned their product well, and they are certain of success. But have you ever wondered why some Startups fail despite all of this careful planning?

Plenty of Entrepreneurs read up on the success stories of various Founders. However, it is equally important to read the failure stories of others, not to judge them, but to learn from their mistakes. 

Here are 5 Reasons why some Startups usually end up being unsuccessful:

1. Lack of Planning.

   The execution of your Idea is even more important than the idea itself. If you don't plan it out right, your entire venture will collapse before you can do anything to fix it. Know your target audience, your goals, and your method of execution. Take the time to plan it out carefully and realistically.

2. Lack of Finances.

   So you've got the idea, you've got the plan, now how do you start? Okay, there are Investors who are ready to pitch in if they find something appealing about your idea. But even this needs careful thought and consideration. Ensure that the terms of the Investor are suitable and profitable not just for him or her, but for you too. 

3. Lack of Financial Planning.

   This has been put as a separate category because it is extremely important. Once you get a certain amount of Investment, you need to budget this amount carefully, or you could end up having nothing left. Also, once you start earning some income, you mustn't over-enthusiastically spend it all, even if you are spending it for the company. Spend some, save some. 

4. Lack of Marketing Skills.

   Marketing plays a major role in the success of any Venture. You need to be able to convince your customers as to why they must buy your product. You must make it seem like a necessity, even if it isn't. If you're not confident of your own product, nobody will ever be. To find out how you can promote your Startup without emptying your pocket, read this Article: 4 Impossibly Inexpensive Ways to Promote Your New Business (The 'SMART' Formula)

5. Lack of Persistence.

   True, this sounds more like a Psychology lesson, but this is also a major reason why some Startups fail. Most Entrepreneurs, especially the younger ones, tend to get easily discouraged and demotivated at even the slightest setback. Don't give up, keep trying, unless there really seems to be no hope for your venture at all. In which case, close it down, but don't lose hope on your dream of being an Entrepreneur. Try something new.

Have you experienced/Are you experiencing these challenges in your Startup? Were there any other challenges that you or a fellow Entrepreneur faced?