7 Reasons why startups fail

7 Reasons why startups fail
7 Reasons why startups fail

7 Reasons why startups fail. Why people target startup a new company? What is the need to start up a new company?  Some of these questions might be coming into your mind.  The reason for a startup is mainly that we are not satisfied with our current jobs. The reason might be that we no longer want to work under some person’s dominance.  We are not willing to work for a small amount of money. These are some of the reasons why we a need to do a startup in a life. Starting your own company is like the dream come true.

Startups are sometimes difficult but if a startup is successful then there is no looking back in life. Also, there are some of the startups that fail in the early stages or after some time.  Not every startup fail but some startups fail.  There are lesser chances that a startup becomes successful. But it surely can if there are hard working employee in the company and the environment is warm and friendly with less pressure on everybody’s mind. Then this can be a great success as well at the same time.

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There are many reasons as well behind the startup’s failure. In this article, I am going to share the 7 Reasons why startups fail.

17 Reasons why startups fail: Team:

If you are going to start up a company and your team is not hardworking and dedicated then there is no point of a startup. For example, you have just started a company and your employees are lazy, not skilled, not hardworking or dedicated. The what is the point of thinking to make this startup a success. Because as the company is important for the employees, the employees are also important to the company.

“There is no company without an employee, there are no employees without a company”.

It is the team that will take your company to the heights that you want it to be.  If your team is full of professionals. That is already skilled enough to perform any task, then your startup will definitely be a successful one. Do not start a company without a group of well-skilled employees. This one of the 7 Reasons why startups fail.

2Full commitment:

Dedication and commitment are the two keys to achieve the success while startups. If you are not at all interested in the business that you are going to start then stop! Do not let yourself force into such thing that you are not even willing to do.

Make your interest your passion and your work. Do not go for such thing which you are not willing to do. If you have the passion for cooking food, go and make your career in cooking.  You have interest in drawing, go and start your career as an artist.  If you have interest in dancing, go and give some auditions or start doing something related to dance. Do not sit and think about a career that will be no less than a hell for you.

Because as the time passes, the career that is not of your choice will make you bore. You will no longer be dedicated or committed to your work as you were on the first day of the startup. If you are going to do a startup then do not do it blind-folded. Be aware of what you are doing. If you will make your interest or your hobby as a startup then you will definitely go to achieve something big like Google or Facebook. The lack of dedication is also one of the 7 reasons why startups fail.

3Hiring Process:

While a startup, companies are in such a  big rush to hire people that they do not even take proper interviews.  This lack of hiring process will lead to the poor selection of people. For example, if you are taking a casual interview and selecting candidates non-seriously then chances are that in future the employees are not capable of performing the tasks given by the company. The casual interviews should be avoided and a serious process should be followed to hire candidates. There can be chances that in this practice you are avoiding the talented people.

So the hiring process is the key to a successful company. Because the better the employees of the company the better the company will be.

4Fulfilling customers need:

The most common failure of a startup is that they unable to solve the actual problem for which the customer is buying the product. Many at times we are not willing to pay for a startup’s product. The reason is that most of the products fail to keep the promise they make at the time of the promotion. Do not invest more and more money until you get a good response from the customers.

There are chances that the product may have certain drawbacks that you might not have found during the launch of the product. You can improve the product after the customers have tried it. By taking feedback from the customers about the same. You can make the necessary improvements and then you can re-launch the product in the market. This is the way by which you can satisfy the people again by making your product better with the unsatisfied customer’s feedback.

5Lack of leadership:

The leadership plays a key role in forming the team. The leader of a startup company should not be a dictator. He should be a person that should guide his team to work in a particular direction. In reality, it is the leader that shows his team the correct path to be followed. He should be the person that should be humble at the same the same time should be little strict to get the daily output from his employees.

People have the mentality of taking a person lightly if he is too humble or polite. So try to be a leader that is not too light that he is taken for fun sake. Be the person of morals and values to build up a team of good character that will help your company grow. The fun part is also important for a startup but work is also important. This is one of the 7 reasons why startups fail. So try to make a balance between pleasure and work.  The time the balance loses at that time you will be no longer be able to make a great startup.

6Do not start a company if you are not in the habit of seeing pennies:

Do not think that at the time of startup you are going to earn lots of dollars. Your income can be in the form of the pennies. The great entrepreneurs do not think of making money at the initial stages. They are only interested in launching such a product at the beginning that is a wonder in itself. This way will let them make millions of dollars in the future.

Also, the people that are going to make a startup are pre-prepared for the situations that might take place in the future. So they are usually making efforts to collect money before making a startup in the company. It sometimes happens that you are not getting money from the clients and you have to give the salary to your employees. So from where will, you pay your employees. It is quite obvious that the stores of money that you might have created before the startup that only you will use to fulfill the employee’s needs.

So you should be mentally prepared for the situations that you might face in the future. If in case a tragedy happens you are fully prepared and your company does not have to suffer for the same. This is another one of the 7 Reasons why startups fail.

7Launching a product that is not required by the market:

There are 50% chances that you are not launching the right product. there might be the possibility that the product is already launched by various companies in the market.  There might be chances that after too much hard work and time spent, you are launching a product that may be the solution to your team’s problem.  Go and search by doing several surveys in public. So, you can get the right kind of product that can be launched in the market. The product that is the need for most of the crowd.

Launching a product that is already in the market launched by many other people will not be a good startup. Because people will not take the risk to try the product of a startup. So choose the product wisely that is going to make your future and your startup’s future.


To conclude, above were the 7 Reasons why startups fail. Do not do a startup without considering the above points because startup needs lots of resources, capital, and manpower. Making a startup with inappropriate resources can lead to the failure of your startup at some point in time. Making your decisions wisely will help you make your startup successful. I hope you will incorporate these into your real life too.


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