Startup is nothing but an initial set-up with a group of people trying to put their entire efforts to make an idea work. As per research, 90% of startups fail. Shocked? But that’s the fact.
Many startups fail due to hell lot of reasons. Here I list only some of the common reasons for startup failure:
1) Lack of a good team:
A team can make or break a company. Many startup founders don’t realize the same and hire and fire their employees based on their requirements. This leads to a lot of bad reputation of the startup in the market. It also makes the company vulnerable to facing tough competition in the market.
2) Lack of proper management:
A startup founder may have a good managerial team but if he or she himself or herself lack proper managerial skills then it can backfire the startup’s functioning. Management is not just about ideas, resources, people, policies but a proper balance of all at the right time and place.
3) Negative approach:
A startup founder or his/her team have to be patient and practical about the progress of the company. If they are over-ambitious and too aggressive in their approach, it can lead to negativity among the stakeholders of the company, which involves its employees and customers too.
4) Lack of ethics:
A startup founder or the team need to be transparent with all the stakeholders about the company’s growth and development. In case any of the party is unethical, it can hamper the progress of the company like anything. No one likes to buy a product or service on fake promises.
