Nearly 90% of start-ups fail their first year. That’s really astonishing because from the remaining 10% only 2-3% remains successful after 5 years mark. Stats are not so surprising as most of the start-ups are from the side of teenagers, early 20s people which have a little to no knowledge and experience of how to successfully launch a venture, product, or service.

According to Investopedia, the four most common reasons why small businesses fail are a lack of sufficient capital; poor management; inadequate business planning; and overblowing their marketing budgets. cash flow problems. But there are many more than four reasons why early-stage businesses in this country don’t survive.

While looking at stats we saw that:

  • 42% of small businesses fail because there’s no market need for their services or products.
  • 29% failed because they ran out of cash.
  • 23% failed because they didn’t have the right team running the business.
  • 19% were outcompeted.
  • 18% failed because of pricing and cost issues.
  • 17% failed because of a poor product offering.
  • 17% failed because they lacked a business model.
  • 14% failed because of poor marketing.
  • 14% failed because they ignored their customers.

Failure is not a bad aspect of life but if it occurs more often than not then it needs your attention.

From the online research and personal interviews were taken by our why futz team we come to know about the following reasons why start-ups fail more often than they should.

  • Avoid Failure
  • Lack of Profit
  • Overexpansion: It is easy to make the mistake of expanding your business into too many verticals. Before you enter new markets make sure you maximize your existing market.
  • The wrong partner: It’s no secret that it is easier to succeed in business with the right partners. The wrong business partner will, at the very least hurt, or, at worst, destroy your company.
  • Get outcompeted
  • No Business Model
  • Lose Focus from goals
  • Fail to develop an organizational structure
  • Lack of coordination of founders and investors
  • Your idea is out of date
  • The idea is logical but has no demand
  • Unable to understand who is the target audience
  • Living in dreams
  • Poor monetization
  • Not tracking progress



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