✖️The lack of demand
The major cause is the market needs are hardly examined. The project founders solve the problems which are relevant for themselves. You may have an excellent technologies, reputation, and experience. Though, if you are not aware enough of what market needs now, your startup is not likely to succeed. In 42% cases, insufficient research of market needs is the cause of one’s failure.
✖️The lack of money
About 30% face this problem. Money and time for startup are limited. Therefore, it’s important to allocate them wisely. Otherwise, you will run out of money very soon. In order to start and develop your business, you have to attract investors and spend your resources on the crucial things. In case of not getting investors’ money, you project has little chance of success.
This cause is faced in 23% cases. Supposedly, a perfect startup team should involve people with different skills. After the project failure, many its founder complain about the mistakes in employing specialists. However, their fault is the team wasn’t able to create MVP. Therefore, it’s essential to build an efficient team to work with.
Some people think that startups should pay their attention to competition. Though, this approach doesn’t always work. When an idea gets hot and receives a positive market feedback, it’s possible to do a bunch of projects in this field. Of course, you shouldn’t focus on competition too much, but don’t ignore it. Underestimating the competition is the cause for failures in 19% cases.
Pricing is one of the aspects which is hard to handle for startups. On the one hand, product or service price bear the cost. On the other hand, it should remain affordable for customers. Just a few startups can reach this balance. That is why 18% failures are caused by price formation.
Many startups encounter problems because they didn’t listen to users’ needs and wants. It doesn’t matter if it’s done on purpose or not. For example, a company can make a product that is too complicated and confusing for their target audience. This mistakes is made in 17% cases.
Of course, as the business world is more complex, it’s not the complete list of failure causes. We are posting the 2-d part soon 🔜
Meanwhile, text what you think about the mentioned causes. Which one have you experienced? Share in comments!