5 Reasons Why Startups Fail

The core reasons why a startup fails are related to their decision makers.

Before starting up, they don't understand the market

And when they present their products, market seems ignoring them

Below are the 5 pointers which define the inabilities and incapacities of founding members:

1} Weak Execution & Wrong Decision Making

Founders show their passion into the project in the beginning but with time, they fail to develop leadership for different skills.

Why?

• Because they want to do everything.
• Because they don't want to share their pie with others.
• Because they think they know the best.
• Because they believe they are the best people in the market for doing such thing.

2} Don't Build a Product for Customers

When you are fresh, you make mistakes.

Somehow, it's justifiable too

Because you are learning new things

But in business, you are not supposed to make mistakes in front of your customers.

Investors might change their perception about you after a year or two as a brand or business

But your customers won't.

• Don't start a business just because you want to prove to this cruel world that you can do better.
• Don't start a business just because you want to join the richie club.

3} No Guidance with Poor Feedback

People think that after reading some books or watching some videos, they are an expert now.

You need a chain of Feedbacks upon your disciplined actions.

You need regular guidance over your daily tasks.

By the EoD, Customers want to solve their problems with your solution.

And you need to plan each and every activity of your sales & marketing from Pitch to Demos to Closure to Onboarding to Support.

P.S., Be open to new ideas

And implement it on an immediate basis.

4} Unwanted Cash Burn

You are spending money to get customers.

You are spending money so that customers continue with your products.

You are spending your hard-earned money so that your company gets fame via media venues.

You are spending money on a feature but that feature is not practically available.

See, if you are VC-friendly, you can burn money in unwanted areas and they will allow you to do that too.

But when you bootstrap your business, you need to take healthy financial decisions to avoid money burns.

5} Lack of ICP ("Ideal Customer Profile")

Who is your Ideal Customer?

You can't sell to everyone just because it seems useful for every person today.

You need a concrete picture of your ideal customer so that your sales process aligns accordingly.

Thus, your pipeline contains less irrelevant leads.

It's unfortunate that people won't buy from you today but with time, they may change their mind.

Because you are well focused on them

And your sales strategies align to your customers.

Most importantly, founders start doubting their beliefs.

They fail to qualify their choices.

Hope you enjoy this newsletter.

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