Why Do Most Startups Fail?

Although building a startup is the new cool thing to do in 2018, 90% of them fail. First of all, it is not the end of the world if your startup doesn’t take off. Rather, it’s a gond opportunity to learn from the mistakes.

Building a startup is not easy and it shouldn’t be easy. There are many hurdles to overcome, sometimes you also need a bit of luck. Encountering the right people at the right place, at the right moment can sometimes be game changing too.

But we’re not going to blame misfortune here, let’s focus on the most common reasons why the startups fail.

No market validation

It may sound obvious to you that the market has to be validated before building anything serious, but many startup founders really just follow their instincts.

Sometimes it pays off, sometimes it doesn’t. But why would you even take the risk of not validating a market before building you MVP? In case you’re looking for a way to validate your idea, make sure to read this article.

Solo founder

Building a startup is hard, very hard. There are always tons of things to do and they’re never ending. Even though it is doable, going solo is not the easiest path to take.

Some people do succeed in building a startup alone, but the chance of failure of solo founders are definitely higher.

Also, solo founders are either people who can build the product alone, or they already have sufficient funds to build something first before attracting other investors.

Bad team composition

A bad team composition can also lead to failure if the co-founders don’t get along well.

It is usually a good idea to gather co founders with different skill sets so that you don’t have to work on the same things.

Typically, there should be at least a sales person and a tech person in the team.

Bad budget management

A lot of entrepreneurs focus on trivial things and spend money unwisely. They can’t figure their priorities right, and spend money on things such as rent of fancy offices and furnitures.

Some would  spend too much money on marketing while the product is not even functional yet.

Not enough marketing

You can have the best product in the world, but if nobody knows about it, your startup is doomed to fail.

When your product is ready and is up and running, it’s time to spend some time and money on your marketing strategy that can bring you more clients.

The product not good enough

This is very difficult to recover from. If your product is fundamentally flawed at its core, it would cost you a lot to recreate it from scratch.

If it’s just a packaging or UI design issue, you can still make the slight changes.

If the gap between you and the competitors is too big, it can be some serious issue too.


A startup can fail because of various reasons. If you have a good product but a bad marketing, you can fail. If you have a good marketing strategy but a bad product, you can also fail. Even when these are not handled properly, it is still possible to patch up with some organization and sufficient fundings.

However, if there is just one thing you need to do right, where there is no room for error, it has to be market validation, because it is the number one reason why most startups fail.

By | 2018-10-12T20:23:51+00:00 October 12th, 2018|blog|0 Comments

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