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7 Reasons Why Startups Fail

Alexandra Smith

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priya456

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A major reason why companies fail, is that they run into the problem of their being little or no market for the product that they have built. Here are some common symptoms:
  • There is not a compelling enough value proposition, or compelling event, to cause the buyer to actually commit to purchasing. Good sales reps will tell you that to get an order in today’s tough conditions, you have to find buyers that have their “hair on fire”, or are “in extreme pain”. You also hear people talking about whether a product is a Vitamin , or an Aspirin .
  • The market timing is wrong. You could be ahead of your market by a few years, and they are not ready for your particular solution at this stage. For example when EqualLogic first launched their product, iSCSI was still very early, and it needed the arrival of VMWare which required a storage area network to do VMotion to really kick their market into gear. Fortunately they had the funding to last through the early years.
 

thelegend

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Nice and i also think that the startup its the hardest in an online business and unfortunately many people gives up
 

contentcouple

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Good infographic! I'd add one more reason: startups fail because when people think of their business ideas, they look for "why ti will succeed" arguments instead of "will it succeed" facts. They look for proofs their idea is good and ignore the facts that tell them "it isn't a good idea".
 

annagreenang

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A major reason why companies fail, is that they run into the problem of their being little or no market for the product that they have built. Here are some common symptoms:
  • There is not a compelling enough value proposition, or compelling event, to cause the buyer to actually commit to purchasing. Good sales reps will tell you that to get an order in today’s tough conditions, you have to find buyers that have their “hair on fire”, or are “in extreme pain”. You also hear people talking about whether a product is a Vitamin , or an Aspirin .
  • The market timing is wrong. You could be ahead of your market by a few years, and they are not ready for your particular solution at this stage. For example when EqualLogic first launched their product, iSCSI was still very early, and it needed the arrival of VMWare which required a storage area network to do VMotion to really kick their market into gear. Fortunately they had the funding to last through the early years.

Good idea, i will try to prevent them with my own business
 

itstrisha

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Yes right! You have mentioned all the reasons that leads to failure of any startup. If we keep them in mind then we can be successful. Keep sharing more such things. Thumbs up:)!!!
 

Paiva

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Beautiful Infographic, with so much relevant information. Thanks for sharing. Just to add onto these, most startups fail because of minority complex issues. Lacking confidence in what you have to offer the market will definitely lead the market to lack confidence in your product as well. Confidence is good, ut overconfidence also has its drawbacks
 

Faelmaran

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Thanks for sharing this. I hope many starting business owners will consider avoiding these factors that can lead to failure. I'd like to emphasize on market research. Its very important to know your market demographics well so that you tune your product to meet their needs and fill the market gap
 

Tujora

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Very nice infographics here, thanks for sharing. Most startups fail because of poor planning. You find that someone starts a business with no clear direction and then loses focus along the way. If you have no predefined destination, then you are bound to take any route that seems appealing, even if it leads you to failure and bankruptcy
 

Chamomile96

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1. The product isn’t perfect for the market
2. Startup runs out of cash
3. Wrong team
4. Startup gets outcompeted
5. Startup can’t settle on the right price
6. A user-unfriendly product
7. Lack of a business model
 
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