The main reason why startups fail

The most latest trend around the world is starting a “startup”.

In the last few years, the number of startups has increased with very high rate but out thousands of startups only handful of them emerge victorious and survive.

One of the mistakes done by many founders is, that they start reading motivational or inspirational stories about startups in their respective fields who have succeeded but don’t give their attention to startups that failed.

Lets discuss here some of the major mistakes done by young founders while starting a startup :

1) Wrong team or no team

The right selection of team members is the major factor which determines the success of any startup.

Selecting co-founders or team members who do not share same future goals, recruiting anyone just because of low wages, lack of clarity, team members with no proper knowledge or trying to everything by your own.

These are the some of the reasons why a startup may fail.

2) Timing

It has been seen that startups with very high quality product or very innovative and unique product fails to establish a good user base and ultimately shuts down.

The reason behind this is timing.

Many times the product launched is too new for the users to adapt to it or the technology required for your product may not be available openly everywhere.

For example,

Consider a company called X launched a mobile app that enables chatting between 2 users without internet connection upto certain range but both the mobiles should contain a specific technology which is present in latest smartphones only.

So, in above case, the mobile app is a unique solution launched by X but every smartphone in the world in not ready for that app, so ultimately the mobile app failed despite of having such a unique idea.

3) Not Changing with time

Companies which get success initially but doesn’t change with the changing technology and users requirements are prone to failure.

So keep on updating your product or service. Keep conducting surveys to understand user requirements.

4) Not taking marketing seriously

Many people say that Google, Facebook, Twitter, etc don’t do advertising but still they are among most successful companies, but they should understand that this is not true at all or I will say this is only one side of the story.

When google, facebook came they had fewer competitors among which good quality product emerged victorious. But in today’s time the situation is not the same.

Good quality product will alone not ensure the success of product but the good marketing tactics is equally important due to increase in competition.

5) Taking all the decisions alone

Not involving other members of the company in decision making might effect your company in following way.

Being a sole decision maker will only show you one perspective of your startup but in involving others you can see different perspectives of your startup.

Also, healthy debate on new ideas will prove beneficial for the company.