90% Of Startups Fail: Nine out of ten startups fail. This is a hard and bleak truth.
Let see the Reasons Why Startups Fail:
1. No Market Need (42%): Tackling problems that are interesting to solve rather than those that serve a market need was cited as the number one reason for failure in a notable 42% of cases. Startups fail when they are not solving a market problem
2. Ran out of cash (29%): Money and time are finite and need to be allocated judiciously. The question of how should you spend your money was a frequent conundrum and reason for failure cited by failed startups (29%).
3. Not the right team (23%): Lack of motivation, expertise or common vision can all contribute to a startup's undoing.
4. Pricing or Cost Issues (18%): Some startups develop a great, but costly product, leading to under performance in sales and revenue.
5. No Business Model (17%): A great idea is not enough. Founders should have a monetization strategy from the every beginning.
6. Poor Marketing (14%): Knowing your target audience and knowing how to get their attention and convert them to leads and ultimately customers is one of the most important skills of a successful business. Some founders err by thinking a great product will advertise itself, they market to the wrong audience or via wrong channels,
7. Being inflexible or ignoring customer(14%): Ignoring users is a tried and true way to fail. Tunnel vision and not gathering user feedback are fatal flaws for most startups.
8. Releasing product at the wrong time(13%) : If you release your product too early, users may write it off as not good enough and getting them back may be difficult if their first impression of you was negative. And if you release your product too late, you may have missed your window of opportunity in the market.
9. Bad Location(9%): Being in a place brimming with the talent and ideas can help founders see their startup through. The right place will also have the audience most likely to use the startup product.
10. Legal Challenges(8%): Sometimes a startup can evolve from a simple idea to a world of legal complexities that can prove to be a core cause of shutting a startup down.