Last Updated: November, 2018
by David King

Share this post

It’s true what they say, one idea can change the whole world.

One startup crafted correctly can transform many lives, IF executed properly. This “IF” carries a huge importance. The whole structure and implementation of a startup relies on many “If’s”. Every moment including right now when you’re reading this blog, at least three startups are being launched globally! The question asked immediately after it’s launch is for how many days will it survive?

Investing in startups and helping them achieve all their goals, I have now realized and recommend to everyone that startups are always a great learning experience. People come and ask if they have a great idea, then why do most of their startups fail every year?In this series on startups, we will share with you top insights on why startups fail and what mistakes entrepreneurs normally commit.

Developing bad or wrong products:

What and how your product is depends upon the reaction of your target users. Majority of startups fail because they build up a product which does not suit the needs of the users. Entrepreneurs prove their incapability in understanding the market of the product. And, your products become a headache rather than a relief. We suggest to play with the demands, needs and wishes of users. The minute you learn to get hold of your users wishes and needs, you have already won the battle!

Wrong Market timing:

This is an essential thing to understand for all the startups. One wrong timing can spoil the whole fun. At times, you try to be ahead of your market and it proves to be a spoilsport in the game of business. You need to know present behaviours and adaptability of your target users. Coming up with a product for which your market is not ready is a sure shot reason for your startups failure! Imagine if we would have planned to start a company or develop and design an idea decades ago, then all our efforts and dreams would have shattered down. May be it’s because of our market analysis along with development skills and your needs that we all are together at the same platform where we write for you and you read and consume!

Lack of needed team skills:

We always suggest all the startups to select their team patiently. One decision in hurry will be a loss of opportunity for a lifetime. Just because you want to meet the deadlines and reach your goal soon, doesn’t mean that you build your team who are not interested in your product idea or lack the aptitude to build it flawlessly. Always remember, people working for you can never understand your vision better than you. Your team is the strongest pillar of your success. A lack of right team leads to product failure because such people can never give their best for the product.

Business Model failure:

This is a common mistake which almost all startups make and we could realize it only after spending time and developing so many startups. The entrepreneurs are so optimistic about their products and feel that the easiest task is to attract and acquire customers. They, in their own world without consulting anyone, assume that they will build an interesting product for which customers will break the barriers and beat a path to buy.

But what happens in reality is far different from their assumptions. May be the first few customers come to you on their own but after sometime it becomes an expensive task to attract and win customers. Sooner these things turn into a lifetime liability and this is the time when your business model fails.

Pockets get empty:

The toughest stage of a startup is when it runs out of cash. When we decide to work on a project, the first and foremost advice we give them is to use the funds appropriately and sensibly. Remember, every stage gets vague if a startup runs out of cash and empty its pockets.

Financial allocation, in reality, displays the management skills of an entrepreneur. The management fails to achieve the next milestone and unable to raise cash to the same extent again. It gets essential for startups to allocate the funds judiciously.


There are many more reasons for a startup’s failure, but we really don’t want to disappoint all the zealous souls. All we can say is sooner or later disaster will strike, if things are not followed and implemented in the right direction. You know what’s the best part of being on this side of the story because we get to know and understand so many innovative and enthusiastic startups. We motivate and encourage the entrepreneurs and tell that you can defeat all odds and build a flourishing and fruitful venture by learning to identify and fight risks.

If you have any thoughts or questions, as always please feel free to reach out to us.

Share this post