The only thing worse than starting something and failing… is not starting something. — Seth Godin Click To Tweet

startup failEvery year nine out of ten startups fail. Therefore, first knowing the favorable and unfavorable grounds of entrepreneurship is necessary before stepping into the pool and getting your hands wet in business.

With the downfall of each business, there came a lesson which every new beginner must follow. It could be a hard and bleak truth, but you must arrange all the ducks in a row before launching any campaign or posting the very first post of your brand. Your one single mistake can cost you a lot, in such a competitive world. That is why, I being a professional writer, blogger and entrepreneur decided to guide my readers in an article where I am going to tell you some of the core reasons that can turn your startup into another failure story. Read on!

Reasons Why Any Startup Fail

Before Making Its Mark

startup fail

Problems Related To Market:

Market problems are one of the most common yet complicated issues that almost every company face in its growing process. Those who come out of it enter into its burn rate stage and those who fail; they even struggle to keep their business running. To save your startup from this issue, the following are a few of the symptoms that can indicate this issue.

The first symptom is not to have a big market for your product. For example, if you are selling wood for a fire in a village that already has their own setup for starting fires, then your market will shrink with the chances of your startup success.

The second case is not as common but a major one which most of the time go unnoticed. Sometimes, a company with a brilliant idea and an aggressive marketing campaign still fail due to lack of knowledge and education of their market. In other terms, they use the wrong market timing in which their audience is not ready for their product or service.

The Failure of Business Model:

startup fail

In the list of unsuccessful startups, there are some who have experienced the fiasco mainly due to a clumsy business model. Some assume that having an enchanting line of products is enough to establish a company. However, your business model would determine whether your startup is going to stick around for awhile or just a experience a couple days of charm.

A business model is everything from customers to products, services to management, strategy to implication. You need to have a clear voice of your target customers. You must have a set of strategically written business goals and have the vision to formulate each strategy with its given requirements. From hiring to firing, incorporation of policies to a formulation of expertise, everything must be in proper order.

Your business model is more like a backbone to your firm, the stronger you build the farther you can go. Take a look at the leading companies and try to learn from their success stories, see what strategies they have applied. This way, you can have a better idea of creating a strong and unbeatable model.

Running Out Of Cash:

It’s true that cash is not everything an entrepreneur would want to start a business, though an empty account can make everything end in failure. Upon surveying startup founders who have grown their business to a greater extent generating billions per year like Google and Facebook, around 13% of the profit is contributed in experimenting new ideas, which is not the case with a newly establish firm. But you must at least manage a systematic monitoring of cash flow to save some pennies at the end of the day.

Every startup needs a huge amount of cash to run their operations. It is nearly impossible to keep your business running without having the constant flow of cash from your investors. This is the job of the CEO of the company to manage and monitor the cash flow. A CEO has to keep the inflow and outflow of the cash by taking weekly reports from the finance department. He or she makes sure whether the firm has enough of an amount to keep all of its operations going or would need to consult other financiers. Managing a cash flow ensures you’re keeping things running smoothly and you can predict any problems ahead of time to take the necessary steps. A smart flow of cash is a must-do thing if you want to save your company from facing any debts or a sudden shutdown.

This Concludes: 3 Core Reasons Why Any Startup Fail Before Making Its Mark. What Did You Think Of This Post? Please Let Us Know By Rating Below!

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