5 Top Startup Failure Reasons
Are you looking to launch your own startup? There’s a lot you need to know about launching a Startup. Unfortunately, ninety percent of startups founders keep making the same mistakes. This article help you avoid making a similar mistake.
1. Unfit Product
The most common reason why new startups fail is they make a product that the market doesn’t need. Product fit is crucial. It has been identified as a first step to building a successful startup. Product fit is when a product provides such solid value to a section of a market that people love it.
2. Get Outcompeted
Regardless of whether it’s one of the big organizations doing exactly what you do or smaller organizations bothering you, getting outcompeted is also one of the main reason behind why most of the new startups fail.
3. Cost Issues
The startups are too optimistic about how easy it will be to gain customers by their products. They assume that they will build an interesting product that customers will enjoy. That may happen with the few customers, but after sometime, it becomes a costly task to attract new customers, and in many cases the cost of acquiring the new customer is actually much higher than the estimated cost.
4. Flawed Business Model
Your business model will fail if that solves a customer problem that customers don’t care about. This type of mistake is driven by an excessively strong focus on products and services. What you want to focus on most, before thinking about problem, is figuring out which problems customers are trying to get solved.
5. Underestimate the competition
All Competitors want to defeat you and come in all shapes and sizes. You may lose your customers from bigger competitors with their best approach and strategy but smaller competitors also carry a bigger menace because these competitors can operate and move fast. Don’t ignore your competitors, especially the smaller competitors.