Top 3 Reasons Why 90% of Startups Fail and How To Avoid it.

According to the U.S. Bureau of Labor Statistics (BLS), more than half of new businesses startups fail during the first year. To put things in perspective lets have a view on this:

20% failure rate until the end of the 1st year

30% failure rate until the end of the 2nd year

50% failure rate until the end of the 5th year

70% failure rate until the end of the 10th year

But why those failures happened in the first year or two? We'll analyse some key facts behind it. If you're reading this as a startup founder, CTO or a potential one, this means you certainly don't want your business to be one of the lots that are bound to fail. We've compiled some of the common startup errors for you to avoid.

TOP 3 reasons why startups fail

Numerous start-ups already fail with their business idea in the first few years. After more than five years, only one in ten is still in the race. There are many reasons why start-ups fail. Usually, it is not just one factor that prevents success, but a combination of several reasons. The three most common reasons are presented in this article.

1- Marketing

2- Finance

3- Management

4- Other Reasons

How to Avoid Startup Failure in 2021 and Beyond

It seems that most startups are destined for failure. But there are key points to not becoming one of the 10% that falls right off the bat.

1- Good idea and dedicated Team: A good idea must resolve a problem for a specific group of persons or a market.

2- Conduct Detailed Research: Every decision made right from the start should be based on detailed market research. If you can't make it, it's better to outsource or contact special agencies to do the job.

3- Write your Marketing Strategies (MS): Your MS should be based on STP ( Segmentation, Targeting, Positioning) and make it match with the idea behind your product.

4- Choose a TG ( Target Group).

5- Set SMART KPI: SMART stand for (Specific, Measurable, Achievable, Relevant, Timely).

6- Build Your MUP ( Minimum usable product): Here you can choose to build MVP or MVP, this depends on how you conducted your research. But MUP will help you collect the first feedback of your TG (Target Group) and thus better improve your MVP and final product.

7- Test: In this phase, you test your MUP in your TG.

8- Collect data and make improvements.

9- Raise Funds.

10 - Go to the Market.

Final Thoughts

The goal of this article is not to discourage you as a founder but to equip you with the right mindset. The idea is to strategize and make viable, well-informed decisions that will keep your startup soaring after 10 years.

With the right marketing strategies, technology, legality and proper management, your startup could be probably one of the next unicorns.

Source: startupnamecheck hustlelife, investopedia, review42, failory , website builder , cbinsights, lead-innovation