Anshul Sharma, CEO & Business Head, Fluper
Introduced in the year 2013, Fluper is a cutting edge Web & Mobile App Development Enterprise reigning in the market with a team of seasoned and passionate professionals, including app developers, market researchers, and project managers. It is known for building impeccable, innovative, and top notch mobile applications supporting both the iOS and Android platforms.
Do you have any idea why most businesses are getting failed? Around 50 percent of all startups collapse in the very first four years. Nobody, start a business or startup with the intention of failing down but what happens?
We have seen lots of entrepreneurs and business owners pitch us their imaginary ideas via sleek slides and alluring presentations, the outcome of the deep researches, homework, and implementation.
And we see business and startup failing into similar formats surrounding the absence of product, market comfort, wrong team, wrong business model and lots of other factors which demonstrate the regular failure of startups.
After analyzing various startups based on their team, product, and traction, here we have mentioned 10 important factors why startups fail and how you can overcome the failure.
Some of the Essential Factors Why Startups Fail includes Absence of Market Demand, Absence of Money, Lack of Good Group, Huge Competition, Issues in Pricing , Bad Product, Business Plan/Model, Ineffectual Marketing, Not Client-Driven and Poor Planning.
Let’s start from the 1st one –
1. Absence of Market Demand
Tremendously the top explanation startups leave the business, around 42 percent of startup businesses distinguished that an absence of market need to keep them from picking up the traction they expected to endure.
While analyzing your own product, think about this: would you say you are genuinely tackling the major point and do individuals truly require what you're providing?
Is your product a nutrient, something that is decent to have however doesn't really take care of a significant issue? O r t hen a gain i s your product a kind of painkiller, a flat out need, which targets the major pain points effectively?
2. Absence of Money
Numerous startups run into issues when they’ve no money to wrap their operations, bringing about a small runway. A similarly inverse situation is additionally conceivable, where a business or startup gets an excessive amount of funding as well as misallocates the money or spends it excessively.
"Even though having this first mover preferred position can be extremely gainful, a second-mover advantage enables new contenders to rapidly catch the market share, which you helped certify"
3. Lack of Good Group
Having a strong team of profoundly energetic, persevering, and differently talented individuals is pivotal for the success of startups when 23% of startup businesses cited to a wrong group acts as a contributing component to their failure.
It's significant that the group should be joined around a typical vision and has settled upon the startup's long haul objectives, with the goal that everybody stays on a similar page as the startup develops.
4. Huge Competition
If you create a good product than existing ones, the same as large organizations or new businesses entered the space as well as chip away at your company’s market share.
Even though having this first-mover preferred position can be extremely gainful, a second-mover advantage enables new contenders to rapidly catch the market share, which you helped certify.
5. Issues in Pricing
Considering the pricing that is constantly a challenge, yet for 18% of new businesses, this is one of the reasons why they get failed.
It is a steady compromising action amid the high pricing to keep up healthy margins and spread working expenses, while likewise expecting to price low to tempt clients.
6. Bad Product
For a wide assortment of reasons, originators in some cases release products that don't completely appeal to clients, which was the situation for 17% of businesses that shut down due to a not being user-friendly.
Accordingly, it's essential that originators completely know their target audience, the issue or pain point they are going to solve, and how they will solve the problems with their products.
7. Business Plan/Model
Due to the absence of monetization policy, just concentrating on one channel, neglecting to discover approaches to scale, and different business plan issues brought about the failure of 17% of startups.
Without a good business plan, VCs are probably going to ask in case they will ever observe a return on their venture, whether the startup has an extraordinary product and traction.
8. Ineffectual Marketing
Many authors are enthusiastic adherents to the product they are developing, possibly to overlook that when the target audience doesn't know about the product’s presence, the organization won't succeed.
On account of 14% of startups, an absence of marketing or not getting quick enough on how to get one's item under the control of the objective market brought about the startup's failure.
9. Not Client-Driven
According to Bill Gates "your most despondent clients are your most noteworthy wellspring of learning," however sadly, numerous startups ruin to acquire customer feedback and follow up on it.
Rather than continually tweaking, testing, and adjusting the product to meet the need of their clients, a few owners fall into the snare of developing a product for themselves, not the client.
10. Poor Planning
In TED Talk, the Idealab’s founder, Bill Gross, distinguished the five fundamental factors that he said and believed, it is essential for any startup’s success.
Utilizing many case studies, he inferred that timing and planning was the main factor that decided whether a startup will succeed, representing 42% of the distinction among successes and failures.
For instance, Gross says, “the success of Airbnb can be ascribed to its flawless timing, as it turned out right amid the tallness of the downturn when individuals truly required additional money, and that perhaps helped individuals beat their issue with leasing their very own home to an outsider."
There are lots of reasons why startup fails yet these 10 are most essential to consider. If you keep these 10 points in mind, you can save your’s own startup from facing the failure. Keep in touch with us for more upcoming updates about business and startups.